I'm positive I have this somewhere...

My mother was really big on these sorts of things when I was little, and I know she had both the original Teddy Ruxpin doll, and this video pack. I never personally saw either in action though... I think she was afraid of breaking it, lol. I don't know for sure, but I remember her commenting that it was really difficult to find Teddy Ruxpin products back in the day. I'm fairly positive she was never able to find the other tapes that were supposed to be used with this set (and she was really persistent about getting everything she could in this vein).

Bottom line, I think it's safe to say that your guess about the 1999 bankruptcy killing this product was right. These things were really expensive for the average family to buy (considering you were expected to buy the other tapes separately after buying the main box/animatronic set), and parents were not as willing to spend time on technological things like this for their kids (especially something that meant having to mess around with the back of the tv to both install and then remove the device).

I'm glad to see other people managed to hold onto these sets, though. Here's hoping we can someday label this found. :')