diff --git a/packages/bruno-app/src/components/Sidebar/Collections/CollectionsBadge/index.js b/packages/bruno-app/src/components/Sidebar/Collections/CollectionsBadge/index.js
new file mode 100644
index 000000000..09cb7f9e4
--- /dev/null
+++ b/packages/bruno-app/src/components/Sidebar/Collections/CollectionsBadge/index.js
@@ -0,0 +1,81 @@
+import { useState } from 'react';
+import { useDispatch, useSelector } from 'react-redux';
+import {
+  IconArrowsSort,
+  IconFolders,
+  IconSortAscendingLetters,
+  IconSortDescendingLetters,
+  IconX,
+} from '@tabler/icons';
+import { sortCollections } from 'providers/ReduxStore/slices/collections/index';
+import RemoveCollections from '../RemoveCollections/index';
+
+const CollectionsBadge = () => {
+  const dispatch = useDispatch();
+  const { collections } = useSelector(state => state.collections);
+  const { collectionSortOrder } = useSelector(state => state.collections);
+  const sortCollectionOrder = () => {
+    let order;
+    switch (collectionSortOrder) {
+      case 'default':
+        order = 'alphabetical';
+        break;
+      case 'alphabetical':
+        order = 'reverseAlphabetical';
+        break;
+      case 'reverseAlphabetical':
+        order = 'default';
+        break;
+    }
+    dispatch(sortCollections({ order }));
+  };
+
+  let sortIcon;
+  if (collectionSortOrder === 'default') {
+    sortIcon = <IconArrowsSort size={18} strokeWidth={1.5} />;
+  } else if (collectionSortOrder === 'alphabetical') {
+    sortIcon = <IconSortAscendingLetters size={18} strokeWidth={1.5} />;
+  } else {
+    sortIcon = <IconSortDescendingLetters size={18} strokeWidth={1.5} />;
+  }
+
+  const [collectionsToClose, setCollectionsToClose] = useState([]);
+  const addAllCollectionsToClose = () => {
+    setCollectionsToClose(collections.map(c => c.uid));
+  };
+  const emptyCollections = () => {
+    setCollectionsToClose([]);
+  };
+
+  return (
+    <div className="items-center mt-2 relative">
+      <div className="collections-badge flex items-center justify-between px-2">
+        <div className="flex items-center  py-1 select-none">
+          <span className="mr-2">
+            <IconFolders size={18} strokeWidth={1.5} />
+          </span>
+          <span>Collections</span>
+        </div>
+        {collections.length >= 1 && (
+          <div className="flex items-center">
+            <button onClick={() => sortCollectionOrder()}>
+              {sortIcon}
+            </button>
+            <button className="ml-1" onClick={addAllCollectionsToClose}>
+              <IconX
+                size={16}
+                strokeWidth={1.5}
+                className="cursor-pointer"
+              />
+            </button>
+            {collectionsToClose.length > 0 && (
+              <RemoveCollections collectionUids={collectionsToClose} onClose={emptyCollections} />
+            )}
+          </div>
+        )}
+      </div>
+    </div>
+  );
+};
+
+export default CollectionsBadge;
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/RemoveCollections/index.js b/packages/bruno-app/src/components/Sidebar/Collections/RemoveCollections/index.js
new file mode 100644
index 000000000..c659eaeef
--- /dev/null
+++ b/packages/bruno-app/src/components/Sidebar/Collections/RemoveCollections/index.js
@@ -0,0 +1,73 @@
+import React from 'react';
+import toast from 'react-hot-toast';
+import { useDispatch, useSelector } from 'react-redux';
+import PropTypes from 'prop-types';
+import { IconFiles } from '@tabler/icons';
+import Modal from 'components/Modal';
+import { removeCollection } from 'providers/ReduxStore/slices/collections/actions';
+import { findCollectionByUid } from 'utils/collections/index';
+
+const RemoveCollections = ({ collectionUids, onClose }) => {
+  const dispatch = useDispatch();
+  const allCollections = useSelector(state => state.collections.collections || []);
+
+  const selectedCollections = collectionUids
+    .map(uid => findCollectionByUid(allCollections, uid))
+    .filter(Boolean);
+
+  const collectionsNames = selectedCollections.map(c => c.name).join(', ');
+  const collectionsPathnames = selectedCollections.map(c => c.pathname).join(', ');
+
+  const onConfirm = () => {
+    const removalPromises = selectedCollections.map(collection => {
+      return dispatch(removeCollection(collection.uid));
+    });
+
+    Promise.all(removalPromises)
+      .then(() => {
+        toast.success('Collections are closed');
+      })
+      .catch(() => {
+        toast.error('An error occurred while closing collections');
+      })
+      .finally(() => {
+        if (onClose) onClose();
+      });
+  };
+
+  const getConfirmationText = () => {
+    if (collectionUids.length > 1) {
+      return `Are you sure you want to close all ${collectionUids.length} collections in Bruno?`;
+    }
+    return (
+      <span>
+        Are you sure you want to close the collection
+        {' '}
+        <span className="font-semibold">{collectionsNames}</span>
+        {' '}
+        in Bruno?
+      </span>
+    );
+  };
+
+  return (
+    <Modal size="sm" title="Close Collections" confirmText="Close" handleConfirm={onConfirm} handleCancel={onClose}>
+      <div className="flex items-center">
+        <IconFiles size={18} strokeWidth={1.5} />
+        <span className="ml-2 mr-4 font-semibold">{collectionsNames}</span>
+      </div>
+      <div className="break-words text-xs mt-1">{collectionsPathnames}</div>
+      <div className="mt-4">{getConfirmationText()}</div>
+      <div className="mt-4">
+        It will still be available in the file system at the above locations and can be re-opened later.
+      </div>
+    </Modal>
+  );
+};
+
+RemoveCollections.propTypes = {
+  collectionUids: PropTypes.arrayOf(PropTypes.string).isRequired,
+  onClose: PropTypes.func,
+};
+
+export default RemoveCollections;
diff --git a/packages/bruno-app/src/components/Sidebar/Collections/index.js b/packages/bruno-app/src/components/Sidebar/Collections/index.js
index 119318819..cbe4d42e4 100644
--- a/packages/bruno-app/src/components/Sidebar/Collections/index.js
+++ b/packages/bruno-app/src/components/Sidebar/Collections/index.js
@@ -1,64 +1,14 @@
-import React, { useState } from 'react';
-import { useDispatch, useSelector } from 'react-redux';
 import {
   IconSearch,
-  IconFolders,
-  IconArrowsSort,
-  IconSortAscendingLetters,
-  IconSortDescendingLetters,
-  IconX
+  IconX,
 } from '@tabler/icons';
-import Collection from './Collection';
+import React, { useState } from 'react';
+import { useSelector } from 'react-redux';
 import CreateCollection from '../CreateCollection';
-import StyledWrapper from './StyledWrapper';
+import Collection from './Collection';
+import CollectionsBadge from './CollectionsBadge/index';
 import CreateOrOpenCollection from './CreateOrOpenCollection';
-import { sortCollections } from 'providers/ReduxStore/slices/collections/actions';
-
-// todo: move this to a separate folder
-// the coding convention is to keep all the components in a folder named after the component
-const CollectionsBadge = () => {
-  const dispatch = useDispatch();
-  const { collections } = useSelector((state) => state.collections);
-  const { collectionSortOrder } = useSelector((state) => state.collections);
-  const sortCollectionOrder = () => {
-    let order;
-    switch (collectionSortOrder) {
-      case 'default':
-        order = 'alphabetical';
-        break;
-      case 'alphabetical':
-        order = 'reverseAlphabetical';
-        break;
-      case 'reverseAlphabetical':
-        order = 'default';
-        break;
-    }
-    dispatch(sortCollections({ order }));
-  };
-  return (
-    <div className="items-center mt-2 relative">
-      <div className="collections-badge flex items-center justify-between px-2">
-        <div className="flex items-center  py-1 select-none">
-          <span className="mr-2">
-            <IconFolders size={18} strokeWidth={1.5} />
-          </span>
-          <span>Collections</span>
-        </div>
-        {collections.length >= 1 && (
-          <button onClick={() => sortCollectionOrder()}>
-            {collectionSortOrder == 'default' ? (
-              <IconArrowsSort size={18} strokeWidth={1.5} />
-            ) : collectionSortOrder == 'alphabetical' ? (
-              <IconSortAscendingLetters size={18} strokeWidth={1.5} />
-            ) : (
-              <IconSortDescendingLetters size={18} strokeWidth={1.5} />
-            )}
-          </button>
-        )}
-      </div>
-    </div>
-  );
-};
+import StyledWrapper from './StyledWrapper';
 
 const Collections = () => {
   const [searchText, setSearchText] = useState('');