I wouldn’t worry about your actions reflecting badly on other foreigners. I don’t think that’s really your responsibility.
As far as future advice goes, I think you likely invested too much money up front. It sounds like you may be short on cash. I would have likely started the company somewhere cheaper than Japan (or just not as a KK which is an expensive option). For example, Estonia is pretty cheap (about 200USD, then 60USD a month for banking/accounting). I’d have found another way to keep your Japanese VISA going. Either some kind of student visa (Japanese study) or another option... Japan is much less strict than other countries and I know people who have stayed (traveling outside the country every 6 to 9 months to reset the visa) on short term visas for years.
As far as what to do now, it’s hard to offer good advice. You seem to have 3 options for the KK: keep it going, shut it down, or ignore it. If money is an issue, I’d be tempted to do whatever is cheapest.
I would then probably keep at the English teaching until your situation has stabilized if you can stand it.
After a while I’d slowly (and cheaply) try to bootstrap something, if that’s what interests you.