g0lfer, I do understand your point. But just to clarify, nothing you have stated is specific to NFS that wouldn't affect any other small flying school in the UK the same way. Simply with any flying school, do not pay upfront.
As far as i'm lead to believe, the reason 'Wings' was shutdown was due to an increase in rates and the decision to not renew the lease. Although 'rumours' are that it will be made to good use, but probably not for the benefit of GA. On the other hand NFS has increased it's prices slightly, which I doubt will affect trade; it certainly won't deter me.
In short; I don't believe that NFS is at a higher risk then any other small flying school, subject to the information presented as yet.