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
- 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
- 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
Standard Service Supply Company
26 High Street
Dear Mr Smith
It is with regret we must inform you that The
Standard Service Supply Company will be closing permanently on September
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. ]
- End of sample letter of business closure -