The logic behind the Holidays branch was reasonable, Love them or loathe them, they already have the scale and the cost base to support this. This problem with it was that there was no real incentive to book through them than with another package holiday operator.
They'd compete against other agents, who could easily mix and match the cheapest flights when FR were a bit expensive.
They also compete with the proper Package holiday operators like TUI, Jet2 and Thomas Cook, who offer exclusive services and reps in resort to help out. Some people will gladly pay a bit more for that certainty.
All being said, i'm not surprised it's gone, you have to spend money to make money and we all know FR like to hoard as much as possible