Yes it was a bit flippant, but I'm afraid there's an awful lot of folks getting their P45s at the moment - compared with Woollies, for example, a small local school going bust is not a major event. Independent education operates in a market place, and in a market, people have to want what you sell. If they don't, you go out of business. Anyone who chooses to opt out of state education knows that in doing so, they take this risk.
As for the kids, a change of school is not necessarily a bad thing. It's sad at first, of course, but in the future I suspect they will look back on it positively - I did when I moved schools in my youth. And there is certainly no shortage of good state primary schools in this area.