Business closure

For any business, closure is difficult. Customers fear losing their money on goods or services they have paid for; suppliers fear that they will not be paid and employees fear for their future with a company to which they have been loyal. In these circumstances it is more important than ever to run the business effectively to generate and maintain value during the final period before closure or sale.

Doing this well and with dignity takes proper planning and management. Any mistake or failure can undermine confidence in the business and make an already difficult situation with customers, suppliers and employees untenable.

 

If you are dealing with a business closure, you may be facing some of the following challenges which we are ideally suited to support you in:

 

  • Maintaining business performance in an environment where sales may drop as news of the closure is heard, and suppliers seek to renegotiate terms as you serve notice
  • Maintaining staff morale and keeping key people in the company
  • Making tough decisions quickly
  • Deciding on the approach for closure, such as sale of an ongoing business or engaging third parties to run and/or buy the assets
  • Managing the implications on others to whom the business provides a service
  • Planning communications to manage expectations with, for example, unions, government departments, customers, trade press, media, suppliers, service providers, staff and other group businesses

 

 

On the face of it, a business closure seems straightforward, but there are many implications which need to be considered and managed. People need to operate in a different way from running and growing a business. By having a well-managed closure programme, you can ensure clear focus, maximise the value of the assets and minimise negative impact on the reputation of the business.

 

"My reflections are that this project didn’t stand a chance without your contribution, professionalism and humanity. It has been inspiring to see how effective a project manager can be."


Programme Director, Major Retailer