How to write a letter closing a business

Written by jennifer vanbaren
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How to write a letter closing a business
Companies send closure letters to customers, creditors and vendors when going out of business. (closed image by Lombok from

When the decision is made to close a business, many business owners write a letter to suppliers, customers and creditors informing them of the decision. A business closure letter contains many components including thanking customers and suppliers, actions required by customers, time frame of closure and a professional ending. Business closure letters sometimes include a reason for closing, but it is not necessary. Many times businesses write several different letters, with specific ones for customers, suppliers and creditors.

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  1. 1

    State the name of the business that is closing. You can write the letter on company letterhead or on a blank sheet of paper. Provide the business' name and address at the top of the letter. Include the date.

  2. 2

    Determine whom the letter is being sent to. For business closure letters to customers, type in the customer's name and address, if practical. This makes the business closure letter more personal. If the letter is for suppliers or creditors, put each company's name and address before the salutation.

  3. 3

    Personalise the salutation. Write "Dear" followed by the customer's or supplier's name. If this is not practical because of a very large customer base, then begin with "Dear Customer" or "Dear Vendor."

  4. 4

    Notify the recipient that the business is closing. State the date of closing.

  5. 5

    Thank the recipient. Thank customers for their loyalty and let them know their business was greatly appreciated. Thank suppliers and creditors for the goods they supplied and for the positive impact their business relationships had on the company.

  6. 6

    Inform recipients of any actions they need to take. Let customers know how and when they can retrieve items at the business, such as items left for repair or cleaning. For creditors and suppliers, provide information regarding settling open accounts.

  7. 7

    Close the letter. A business closure letter typically ends with "Sincerely" or "With best regards" followed by the signature of the business owner/CEO, with the business owner's name, his title and the business name typed below.

  8. 8

    Mail the letters at least 30 days ahead of the closing date. Allow customers ample time to pick up any belongings and give creditors and suppliers time to settle accounts.

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