You need to decide if this is a company or a partnership because it says "partner" in the question but discusses "dissolving the company" in the text.
Legal position is very different.
Other than potentially affecting the cash flow of the business there isn't really a problem at all in a partnership paying personal expenses for a partner as long as they are charged to drawings and not claimed as business expenses. A director of a limited company cannot do the same though unless they already previously invested surplus funds.
If the position is genuinely irretrievable and it's a company then you can either just cease and eventually get it struck off after paying liabilities and splitting assets or have one person buy the other out (though presumably there is no point in the one who has no licences buying it).
If it's a partnership it's a bit simpler. Again just split things up and start again or have one buy the other out.
There may well be issues with leases of premises of course?