[mrschwabe]

Unless you perish in a disaster, there is no such thing as business failure. Only mistakes and fuckups (results of which can only 'change' your business into some other shape or form).

So do the obvious to sort things out as best you can; to fulfill your obligations and responsibilities without giving up; be honest with your personnel, customers, and investors/partners - make arrangements to repay who is owed all the while being open about your complete situation.

At least this way there is some hope of bringing a bad situation to neutral ground. You can try and if you give it your best, you can go to sleep at night feeling at ease cause that is the only thing anyone can ever expect of you - that you are honest and doing your best.

(of course, your reputation and ability to do business in this way again in the future may be impacted but such is reality; mistakes and fuckups have consequences of which you have to accept too)