It seems they are still on business, they posted at least two pieces in the French blog:
A reply about the LIT support:
The epub and adobe pdf support will work on the Cybook Gen3 and on the different Bookeen products. We don't support LIT files yet, and this extension is not in our priorities at the moment. However, we do as much as we can to satisfy our users' demands.
Cybook Gen3 available at Cultura:
Apparently the Cybook will be available at the
Cultura shops, and there's an offer of a 2GB card with 100 titles...