I'm sure you read the article, which mentions that there were negotiations up to the last minute to raise the last 200mm pounds on top of the 900mm pounds existing rescue package.
https://en.wikipedia.org/wiki/Limited_liability#Justificatio...
The instant the airline says "We're no longer accepting bookings because we're working to figure out a cash situation." you've got to believe everyone else who is still booked will pull their ticket for a refund of any form. I would be.
There would be a massive outflow of what little available cash exists.
The announcement whether early or late is the immediate death knell of the company.
I do agree at face value this seems terrible, but I honestly don't see a better course of action given they were waiting for a bailout and then didn't receive it.
That way if the travel company or airline or hotel goes out of business, the holidaymaker hasn't lost any money (although they might face the cost of buying a last-minute flight from a different airline, or similar)
Of course, you could argue consumers who want such peace of mind can already approximate such an arrangement by combining a package holiday with travel insurance.