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I would be honest with the clients, addressing the situation, a short piece about why it happened, a thank you to each customer for their loyalty, and then a couple of options to what the customers can use instead.
If you have a partner company or a competitor that you have a good relationship with, I would introduce your customers to them as goodwill. The customers will appreciate that and your competitor friend will also. Goodwill will come back to you.
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