A retrospective on the game's history is available on CNET, discussing the world's status as being a competitor for Second Life without ever quite gaining the traction that its bigger cousin managed. While the environment was seen as slightly more kid-and-media friendly due to restrictions on adult-only content, the project had a difficult time turning a profit. After seven years, it's finally overwhelmed the company.
The official announcement includes a number of resources for those who have invested money in There.com to regain it prior to the shutdown, with extensive buyback programs and refunds available for all participants. Our condolences to the team on this sad turn of events.