My company closed down so I was laid off, during the period prior to my termination I took part time work with another company who treated me as a independent contractor, the job did not pan out so we quit on cordial terms. I tried claiming for UI benefit

I worked for the company for 5 years as the sole employee, we had a great relationship but the owners were old and business was slow so they decided to wind the company up. During the winding down period I was offered another job part time. So basically I worked for both companies the second one as a contractor and was responsible for my own income tax payments SS etcetera.. after the company closed I was let go by the second company so I decided to claim UI benefits. My original company denied them, claiming that I worked for another since they closed the company, I don't understand why as I was lead to believe that it is actually the state that pays it not the company. Am I wrong?, I don't want to upset my old bosses as we are friends so really not sure what the situation is.