the scarier thing here is that it was Da'as Torah that told them to close. If the Gadol told them to close, (He had told them to keep open a short while earlier) then even he realized that the money wasn't going to come...
It seems unethical to open the doors if you know in advance that you can’t make your payroll. And while the school may be able to get away without paying people there are other bills that need to be paid. If the mortgage is not paid the bank will come take the building.
I expect that other schools will go broke this year as well.