Nothing happens to the wallet, it stays where it was, in the blockchain carrying the funds, it is only that you won't be able to access it if the company was hosting the private keys for you and you didn't have access to your private keys, in that case, your funds are lost forever for you and will always stay within that wallet unless the company, later on, decides to move them somewhere else and use them since they have the private keys to it .

That is why it is essential to always use a noncustodial wallet like Electrum or a hardware wallet where only you have access to your private keys and in case something happens with the company, you can still import your wallet in another supported wallet and use the funds.