While no deals have been signed, the furious maneuvering to see what will happen to LPC Group's publisher clients in its Chapter 11 restructuring (see 'More on LPC Bankruptcy') appears to be drawing to a conclusion.  Events last week led one book distributor to e-mail publisher clients of LPC with a lead sentence that stated, 'My understanding is that LPC will close for good in late June/early July.'  The distributor continued, 'I would still be interested in talking to you about distributing your titles to the book trade.' 

The distributor e-mail appears to be jumping the gun, but the three options under consideration for the future of LPC -- acquisition by Steve Geppi or Diamond, acquisition by Client Distribution Services (a/k/a/ CDS, which has been doing logistics and collections for LPC), or a white knight rescue of LPC as an independent entitiy -- may be narrowing.  We're hearing that the leading contender is CDS, and that a deal may be signed within the next couple of weeks for CDS to acquire LPC's contracts with its distribution clients, with some key LPC executives moving to CDS.   

While some publisher clients of LPC have jumped to Diamond (see 'Comics One Moves to Diamond'), most have held firm, as they said they would when originally contacted by ICv2 (see 'Publishers React to LPC Bankruptcy').   This has not been without pain.  The seizure by the bank of a major payment headed from CDS through LPC to publishers initiated this crisis, of course, but money has also not been flowing since the filing.  Expectations are that publishers will take some kind of a haircut on the money owed them from before the filing, but will receive all of the money for sales made since the filing.  

Also stirring the pot is the rumor that Marvel is considering moving its bookstore distribution from Diamond to CDS.  This would make CDS a powerhouse in the bookstore distribution of book format comics, combining Marvel's new-found marketability with the solid sales of titles from Tokyopop, Dark Horse, CrossGen, Image, and others.  Diamond has been doing Marvel's bookstore distribution for about a year (see 'Diamond Awarded Marvel Bookstore Distribution'), and Marvel is the centerpiece of Diamond's efforts to move into bookstores. 

Of course, with nothing signed nothing is done, and events could still turn in any number of directions.  Given Diamond and owner Steve Geppi's propensity for acquisitions as a means of growth and a history of pulling deals out of a hat, it may be too early to count them out.  But regardless, it's likely that answers to the questions surrounding LPC's future will be answered soon.