As reported by Publishers Weekly, Night Shade Books is in negotiations with Skyhorse Publishing and Start Publishing to sell its assets, namely its titles under contract. The press has been struggling financially for several years, and in the past months laid off editor Ross Lockhart and lost several authors. SFWA recently began working with Night Shade to find an alternative to bankruptcy, as bankruptcy can tie up contracts indefinitely or see them sold for pennies on the dollar and is usually a disaster for authors. Letters went out to authors and agents describing the deal and recommending authors seek out independent legal advice. While the information was for SFWA members only and intended to remain confidential during the negotiations, it has been leaked online and reported at PW.
iO9 also published a portion of the letter sent by Night Shade Books to authors.
See the complete article with developments in the May 2013 issue of Locus.