The nursery was ordered to close on Friday after inspectors discovered vermin in the building, the Local Democracy Reporting Service (LDRS) said.
Parents were told on Monday it would not reopen, with an email blaming a collapsed drain beneath the baby room for the infestation.
The email said vermin had managed to “burrow their way into the main building” because of the damaged drain.
It also said the business was struggling financially and the owner could not see a way forward. The nursery manager said she was “devastated” by the closure.
Salford City Council said its environmental health and children’s services officers had taken “proactive and decisive action” after being alerted to the issue.
A city council spokesperson said: “This will be a stressful and unsettling time for parents and carers.
“However, our officers are working with families to help them find alternative childcare provision in the community.”
It added the nursery had surrendered its Ofsted registration.