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Graphic Novel Distributor Files for Bankruptcy
posted on by Scott Green
Comicon Splash reports LPC Group, the biggest distributor of Independent comics publishers into mainstream bookstores(including manga translators Dark Horse, and TOKYOPOP), filed for Chapter 11 today.
David Wilk, the company's president, announced the bankruptcy in a letter to publishers late Tuesday night.
In the letter, Wilk blamed the collapse on a 'wrongful' seizure of funds in the LPC account. Wilk said: "On Thursday, CDS wired to our account its payment for December sales, less returns and fees, and we in turn prepared wiring instructions and checks to send out our current payments to you and other publishers. That money is in great part, the payment for receivables that belong to the publishers. The bank, however, in spite of their explicit promises, seized that payment and all other funds in our account. As a result, LPC had no recourse but to file for Chapter 11Bankruptcy protection, which we have done today, April 2, 2002."
In the letter, Wilk blamed the collapse on a 'wrongful' seizure of funds in the LPC account. Wilk said: "On Thursday, CDS wired to our account its payment for December sales, less returns and fees, and we in turn prepared wiring instructions and checks to send out our current payments to you and other publishers. That money is in great part, the payment for receivables that belong to the publishers. The bank, however, in spite of their explicit promises, seized that payment and all other funds in our account. As a result, LPC had no recourse but to file for Chapter 11Bankruptcy protection, which we have done today, April 2, 2002."
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