diff --git a/lib/bunny/session.rb b/lib/bunny/session.rb
index df4e27887..95d6a449a 100644
--- a/lib/bunny/session.rb
+++ b/lib/bunny/session.rb
@@ -757,6 +757,7 @@ def recover_from_network_failure
         end
       else
         @logger.error "Ran out of recovery attempts (limit set to #{@max_recovery_attempts})"
+        self.close
       end
     end
 
diff --git a/spec/issues/issue549_spec.rb b/spec/issues/issue549_spec.rb
new file mode 100644
index 000000000..3b39b2e04
--- /dev/null
+++ b/spec/issues/issue549_spec.rb
@@ -0,0 +1,30 @@
+require 'spec_helper'
+
+describe Bunny::Session do
+  context 'when retry attempts have been exhausted' do
+    let(:io) { StringIO.new } # keep test output clear
+
+    def create_session
+      described_class.new(
+        host: 'fake.host',
+        recovery_attempts: 0,
+        connection_timeout: 0,
+        network_recovery_interval: 0,
+        logfile: io,
+      )
+    end
+
+    it 'closes the session' do
+      session = create_session
+      session.handle_network_failure(StandardError.new)
+      expect(session.closed?).to be true
+    end
+
+    it 'stops the reader loop' do
+      session = create_session
+      reader_loop = session.reader_loop
+      session.handle_network_failure(StandardError.new)
+      expect(reader_loop.stopping?).to be true
+    end
+  end
+end