Filing for Bankruptcy would potentially allow them to stay in business, even potentially recouping losses or turning a profit(in the form of continuing to pay executive salaries - the executives likely being the owners). They could sell off various assets and keep that money - assets like the contracts they have with talents who would likely be better off without those contracts in-force. Why would anyone, particularly talent they owe money to; want to help them with that?

They don’t deserve to stay in business and should absolutely have their corporate assets seized in the most inconvenient ways possible. Hopefully some of the owners or executives have left their personal assets exposed to liability somehow.