I thought I had this problem, but then I realised:

System->Preferences->Power Management
The default when on AC Power is for a lid close to blank the screen.

Perhaps this default should be changed to suspend?

In any case, changing it to suspend worked for me - the laptop now
suspends when the lid is closed.

-- 
suspend when closing laptop lid doesn't work
https://bugs.launchpad.net/bugs/44058
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