I used to scoff and sneer as companies waxed and waned... and then I started my own show and I was directly exposed to the roller-coaster that is small business.
At least they survived, regardless of the traumatic amputation required. Good luck to them.
There's a big difference between "roller-coaster" small business and flat out insolvent trading.
While I don't know the specifics of the company in this case, and it may not necessarily apply here, there are plenty of examples of dodgy companies that end up severely affecting or ruining others because of continued insolvent trading and taking up further credit from unknowing industry providers acting in good faith, when they know perfectly well they will never be able to pay the money back. These types are reprehensible and flat out should be prosecuted and the directors held liable for criminal fraud. If only ASIC actually had the time and resources.
I've seen this happen plenty in GA.