Sample letter of business closure.

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Sample letter of business closure.

When a business closes down, it brings problems and disruption for many people. The business will have been a feature in many peoples lives, and it is better that they hear about the business closure directly from the business or company, rather than read about it in the press. The business closure will affect several different groups of people.

  • Employers and employees are the first people we normally think of, whose lives will be affected by the closure. Some will be forced into early retirement, but others will have an opportunity or requirement to seek new work.
  • Business customers and clients must be informed, as a matter of goodwill towards faithful customers, and to enable them to find another supplier or service provider.
  • Depending on the size of the business, it may be necessary to contact the press to inform them of the closure. It would be better to give them some background information than have them make up what they don't know.
  • If the business is publically owned, shareholders will need to be informed of the closure and given information regarding the future value and status of their shares. In an orderly closure, some may make money, but more often a business closure means shareholders will lose money.


What information should be given in a letter? The folowing sample letter of business closure specifies the overall structure a letter might take. Some elements are common to all such letters, and can be altered to suit your needs. The major components would include

  • A statement that the business is closing on a particular date.
  • A recognition of the position the business had in the community over its lifespan.
  • Information on how the closure affects them and what they may be required to do, for example if they are shareholders, customers waiting for the delivery of goods or suppliers waiting for payment.
  • A closing expression of regret, once more, at the business closure.

Sample Letter of Business Closure


The Standard Service Supply Company
Service Headquarters
Service Road

Phone 0123 123456

25th April 2009

Mr Jim Smith
26 High Street
New Town

Dear Mr Smith

It is with regret we must inform you that The Standard Service Supply Company will be closing permanently on September 30th 2009.

The Standard Service Supply Company have been manufacturing and supplying widgets in Servicetown for 30 years, and have been proud to be a contributor to many activities in the local community. Unfortunately [ in the current financial climate ] [ due to the retirement of the owner ] we are unable to continue trading and must therefore stop production on September 30th.

[ As you are a shareholder in The Standard Service Supply Company, we have enclosed detailed documentation on how the company closure affects your investment. ]

[ We thank you for your custom / business and are pleased to have been able to work with you. ]

Yours sincerely

Jim Smith


- End of sample letter of business closure -