Sample Letter of Business Closure

When closing your business, refer to the sample letter of business closure as a model of an appropriate letter. The sample letter provides tips on what to include in your communication as well as suggestions about the format of your letter.

Once you make the decision to close your business, you don't want to just hang a "Closed" sign on your door. You need to announce the closing to your customers, suppliers and business associates. These people have been key players in your business activities by purchasing your products and services and, in the case of suppliers, by providing you with products and services which were instrumental in your business. As one of your final acts of customer service, you will need to give them advance warning that your business will no longer be available to them.

The business closure letter is an excellent way to:

• Thank customers for their business
• Thank suppliers for their service
• Explain any actions which need to be taken by your customers and suppliers due to the closure of your business
• Create a professional end to your current business relationships

There is no hard and fast rule about when you need to mail a business closure letter. The actual mail date will depend upon several factors:

• Going Out of Business Sale – You want your special customers to hear about your business closure from you, not from a "Going out Of Business" sign hanging across your front door. Having advance warning reinforces to your customers that you think they are special and gives them an opportunity to conduct any necessary final business transactions with you. You should mail the letter or include a copy in their monthly bill at least 30 days before the closure date.
• Accounting Status – You need to inform suppliers and creditors at least 60 days before your closure date in order to allow enough time for accounts to be settled and closed.
• Type of Business – A service business such as a dry cleaner or repair shop will need to give customers enough time to come in and pick up their belongings. A retail business will probably want to leave lots of time for a sale to reduce their inventory, with the business closure letter being released before the sale begins.
• Your Future Plans – If you are selling a business and plan to immediately open a related new business, you may want to minimize the amount of time between the two businesses. For example, you may decide to hold off sending the business closure letter until right before the closure date if you are selling your housekeeping franchise and opening your own housekeeping service.

The key goals of a business closure letter are to clearly express the details of the business closure and to sincerely thank the reader for their business or service.

Business closure letters don't need to be long to be effective. The letter should:

• Tell the reader the date the business will close
• Inform the reader of anything they need to do (such as pick up their dry cleaning, pay off their outstanding bill, come in to the going out of business sale, etc.)
• Tell the reader where to direct their questions
• Thank the customer or supplier for their business

The letter does not have to give a reason why the business is being closed. If the reason is good news, such as the retirement of the owner, you may decide to include the reason in the letter. Otherwise, it is usually best to concentrate the letter on subjects that are important to the reader such as what they need to do and by when.

Each business closure situation has different details. The type of business will dictate what actions you, your customers or suppliers will have to take before the closure date. To develop a customized letter meeting your needs, start with a sample letter of business closure and adapt the wording to reflect the details of your particular situation.

[Name of Business That Is Closing]
[Address]

[Date]

[Customer's Name]
[Customer's Address]

Dear [Customer's Name – For example: Dear Tom or Dear Mr. Johnson]:

We will be closing [Name of Business That Is Closing] on [Date of Closing]. You will need to come in and [What the Customer Has to Do – For example: pick up your unrepaired television] before that date or [What Will Happen – For example: your television will be donated to charity]

I want to thank you for your past business and tell you how much we have enjoyed having you as a customer. Please don't hesitate to call if there is anything I can do for you before [Date of Closing].

Sincerely,

[Sender's Signature]
[Sender's Name – For example: Mary Thompson]
[Sender's Title – For example: Store Manager]

[Name of Business That Is Closing]
[Address]

[Date]

[Supplier's Name]
[Supplier's Address]

Dear [Contact Name at Supplier – For example: Dear Joan or Dear Ms. Smith]:

We will be closing [Name of Business That Is Closing] on [Date of Closing]. We will not be placing any additional orders with [Supplier's Name]. Over the next sixty days we are reviewing our accounting records and paying any outstanding invoices. If we haven't already, we will be in contact with you to confirm our current balance owed and to arrange for the solution of any outstanding issues.

I want to thank you for your past business and tell you how much we have enjoyed having you as a supplier. Please don't hesitate to call if you have any questions or if there is anything we need to do to close our records with [Supplier's Name] before [Date of Closing].

Sincerely,

[Sender's Signature]
[Sender's Name – For example: Jane Bryant]
[Sender's Title – For example: Owner]

It is always preferred to leave a relationship on a positive note. Even if you never plan to see or work with an individual again, it is always best to be helpful, positive and sincere in business closure letters. Your professionalism will make it easier to close the business and it may give you a head-start if your future business plans cause to you to be working with these same individuals in the future.

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