Sample Letters To Comply With WARN

SAMPLE LETTER TO ALL EMPLOYEES OF THE COMPANY

MEMORANDUM

TO:	All ABC Company Employees
FROM:	___________________, President of ABC Company
DATE:
RE:	Potential Closure of ABC Company

During the past several months, a general decline in our industry has impacted ABC Company both operationally and financially. All of us have worked hard to improve performance in the hope that we could turn ABC’s financial problems around. However, most recently the situation has taken a turn for the worse. In late November and early December, many of our key vendors began cutting back credit, thus cutting back our general inventory. At the end of December, we lost three of our most experienced salespeople to competitors, whose combined business adds up to over X million dollars of annual sales, which is about 20 percent of our business. It is likely these salespeople will take almost all of that business to our competitors. Finally, two weeks ago, XYZ Company, our only supplier, announced that it will no longer provide us with inventory. The combination of these factors led us to reevaluate the direction ABC is currently taking as a company.

It was our initial hope to maintain ABC as a going concern and save the jobs of all employees. We looked at every avenue available to avoid shutting down, including additional financing. Also, with the goal of keeping ABC open, we have sought, and continue to actively seek, a prospective purchaser who would continue operations as is. However, after speaking with other companies in this field as recently as last Thursday, it is looking increasingly likely that the only purchasers interested will liquidate ABC, close down the company, and keep only the inventory.

We regret to inform you that there is a real possibility that ABC Company [insert address of ABC] must close within the next several weeks. This closing will result in the termination of employment for all ABC employees, and will be permanent. If nothing changes in terms of finding a purchaser for the company, we expect the first separation to occur by [insert specific date]. It is with this possibility in mind that we are issuing this notice in compliance with both the Federal WARN Act and the [State] Business Closing and the [State] Lay-off Act.

Please contact [insert name and phone number of company official] if you have any questions. Thank you for all of your hard work on behalf of ABC Company. We wish you well in all of your future endeavors.