A few questions have come up, so I'll take the opportunity to explain things further.
Firstly, print = hard copies - I absolutely will continue to publish PDFs for as long as I'm in business!
Should a future relationship with a distributor or publisher develop, whereby they handled printing and stock and it was stated clearly in my contract that I only receive royalties, then I should think that would be OK. The problem with Magcloud is that it's a 3rd party that essentially makes me the publisher, and although it's not used that way, it could be, and that's the concern. Being a business that manages tangible stock would move me into a different business bracket and I can't justify the extra work and cost involved with that.
I used to have a nice little set-up for print wholesale that allowed shops and dyers to buy directly from Magcloud at wholesale prices, and I only receive the royalties. When sterling crashed after the referendum the print wholesale side of my business was basically killed off, as many of my customers were in the UK and everything on Magcloud is set in US dollars - everything became too expensive for them.
Digital sales remains strong through Ravelry In-store sales, so you can still support your LYS that way. I'm sad to no longer be able to support them with print, but more and more shops are moving away from print to digital, and increasingly I think you'll find less options for print unless it's for something very niche like the big books Susan Crawford likes to produce.
I am hoping to continue to have sample copies of my eBooks in print format, as they'll belong to the business and not be for sale, but I'll need to double check that with the accountant. They're really useful for Hat clinics, trunk shows and workshops, as you can see quite clearly what's inside the eBook which you can't do with digital in any other way.
And having checked, I can't sell eBooks via Magcloud without first selling a print option, so that platform will be closing entirely. It will take a little while to set up the new company and move all the accounts and I will try to keep that shop open as long as possible for you to get your last minute purchases.
There are some more important changes I need to talk about but I'll finish up here now and write the rest during the week!