In response to one of his followers, Grimly cited Frankenweenie as one reason for Pinocchio's potential demise. "There are people like us out there. But they look at numbers. Frankenweenie was a box office failure to them."
By "them," I'm presuming he means the producers (Frankenweenie's Allison Abbate was executive producing) and/or The Jim Henson Company (the latter was overseeing the production). Frankenweenie took home $67 million worldwide; $35.2 million of that was made domestically.
Knowing Del Toro, I'm sure he'll keep at it and try to get this made - if not at Henson, then elsewhere. But as Grimly stated, now is not the time...
Update: Grimly tells Bleeding Cool: