My understanding is that the move came after take-over talks with Skywork failed last week and the owner decided to not pour any more money into the airline (which is only part of a larger group of aviation-related companies). The official line after the failed talks with Skywork was that both airlines had only been talking about a maintenance co-operation.
Apparently Cirrus is not insolvent, but has simply stopped operating. The CEO is being quoted that the suspension is only temporarily for next week, but realistically, who has seen a troubled airline resuming flights within a week of stopping all operations?
German message boards report that most Dorniers have been flown to the airlines maintenance base at Saarbrücken. Some suggest that some aircraft will be moved to the Cirrus Group's charter arm to offer Suckling-style ACMI-/charter operations in the future.