Peter Oborne sums is up here.
It is difficult to predict what will happen if Labour collapses financially. One outcome is that they may be finished permanently. Another is that the party reforms as new legal entity, albeit with senior figures from 'old' Labour personally bankrupted in the process. Of course, the unions may bail them out, but as Peter Oborne writes, at what cost? An obvious deal would be politically suicidal. Their best hope is that some lenders are forgiving and the remaining rich supporters dig deep.
What they should be doing, of course, is to cut costs like any business or public body would in the midst of a budget squeeze. There appears to be little sign of that.