Twitter does send email alerts when some one follows you on twitter and it does not send alert when some one stops following you. There is application called Qwitter which send email alerts when some one unfollows you on twitter. Twunfollow.com is similar to Qwitter.
There are lot of twitter users using automated tools to unfollow some one when he stops following them. If you have lot of followers, its hard to get notice whom stopped following you. Then Twunfollow will be useful which sends an email alert. As you have the option to stay following him if you are also following him or unfollowing him as well.
To use Twunfollow you have to sign into it with your twitter username and password.
Link: Twunfollow [Thanks to cheth].
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