You don't have to declare bankruptcy to shut down a small business - even with huge debt. You just dissolve the business entity and the debt goes down with the ship (unless you have a contract that says otherwise).
Most small businesses would be required to personally guarantee the debt (unless they were able to show a history of revenue to an amiable lender); owners will either cover out of their pocket to protect their credit reports, and only failing that, declare BK. Of course, walk away from the debt if you’re not personally guaranteeing it.
Leases will be broken and debt will be defaulted on at scale; it’s going to take years for everyone to fight over the scraps in court.
