Quite so. When PC party self destructed under Mulroney, the right wing of the party (blue Tories) formed the Reform party, the moderate wing of the party (Red Tories) formed Bloc Quebecois.
The right and far right tried valiantly to soldier on at the federal level. They even tried changing the name of the party twice, once to Alliance and then to Conservative party. Nothing worked. It is only when they moved away from the extreme, towards the center that they were able to win a minority government.
While right and far right philosophies may play well in Alberta, they do not play well in Ontario and Québec, who really decide who is going to win.
It was mainly seperatists that broke away that formed the reform party in Alberta,it had nothing to do with blue tories.
I dont understand where you get your info from but the old grassroots movement is still alive minus the members that left to form reform.