I believe technology has played a major part in the closing of these branch offices. iPads, iPhones and other technology are being heavily utilized in our information age now. Many people now go online for their information and do not limit themselves to laundry mats or random strangers peddling magazines with an agenda. I am a graphics designer and speak with many publishing companies and the common theme amongst them is that the internet is destroying the printing market. The Watchtower will at some point need/have to compete in enemy territory (the internet) to recruit in due time. I am also sure that the Conti case didn't help them out either.
I found this on the open charities website, and I hope no active witness worries themselves over the Watchtower's lack of funds.
http://opencharities.org/charities/216647