To announce a business closure or liquidation, notify the employees, suppliers and customers by letter, explains the Houston Chronicle. Business closure letters are signed and dated by the owners or top executives. They include the date of the closure and the reason the business is closing its doors.Continue Reading
An in-person meeting with lenders and investors takes place before the closure announcement. The Chronicle suggests that business owners meet with creditors and investors as soon as they make a decision to close the business because the creditors and investors are so deeply involved with the venture. The business owners should then follow up with a formal letter to the creditors and investors detailing the company's liquidation plan.
The initial announcement to employees often takes place in an employee meeting. The employees then receive the formal letter announcing the closure. The Chronicle recommends that owners follow up on the letters to suppliers and vendors with a phone call or face-to-face meeting. Vendors and suppliers are likely to have concerns about receiving payment for services rendered or supplies delivered, as well as contracts. If the owners wish to re-enter the market with a new business venture it is important that they maintain a good reputation within the industry. Customers also need adequate notice that the business is closing so they can find a new supplier. Ensuring this occurs preserves the reputation of the business owners.Learn more about Managing a Business