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Despite total sales of $ 40 million, TSR ended 1996 with few cash reserves.
When Random House returned an unexpectedly high percentage the year's inventory of unsold novels and sets of Dragon Dice for a fee of several million dollars, TSR found itself in a cash crunch.
With no cash, TSR was unable to pay their printing and shipping bills, and the logistics company that handled TSR's pre-press, printing, warehousing and shipping refused to do any more work.
Since the logistics company had the production plates for key products such as core D & D books, there was no means of printing or shipping core products to generate income or secure short-term financing.
With no viable financial plan for TSR's survival, Lorraine Williams sold the company to Wizards of the Coast in 1997.
Before the corporate offices in Lake Geneva were closed, some TSR employees accepted the offer of transferring to Wizards of the Coast's offices in Washington.

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