It looks like the event will move on using the second option as Cage Warriors 113 is going to be held in an empty arena setting.
Boylan made the announcement today via Twitter:
The Cage Warriors President also stated that he was trying to get bouts from the UFC Fight Night London card added to Cage Warriors 113 and the promotion was able to get one contest thus far for the show as John Phillips faces Dusko Todorovic.
This was also announced by Boylan through Twitter:
Update: 2.— Graham Boylan ---- (@GrahamBoylan) March 16, 2020
UFC bout 1: John Philips v Dusko Todorovic has been confirmed to take place @CageWarriors #cw113 Friday Night. The event will be broadcasted LIVE on @UFCFightPass as well as TV Networks around the World.
Cage Warriors 113 takes place on Friday, March 20 from the Indigo At The 02 in London, England with Morgan Charriere and Darko Banovic headlining. Fightful is providing live coverage of the event, which streams live on UFC Fight Pass.