Reedy gutted LRP in the US market when they released their ESC's. Simply by their affiliation with AE. Is that a direct result of what's going on now with LRP, I have no idea. What I can tell you is that LRP hasn't even been a blip on the ESC radar for well over 2 years, not locally anyway. They missed the technology wave in ESC's and got washed away by the competition, IMO.
The industry itself won't suffer if LRP goes away.