diff --git a/debian/changelog b/debian/changelog
index 7fcd4e53..134c6eb7 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -1,4 +1,4 @@
-livecd-rootfs (2.408.38) UNRELEASED; urgency=medium
+livecd-rootfs (2.408.39) UNRELEASED; urgency=medium
 
   * Backport support for building ubuntu-core images with ubuntu-image (using
     IMAGEFORMAT=ubuntu-image).
@@ -8,6 +8,13 @@ livecd-rootfs (2.408.38) UNRELEASED; urgency=medium
 
  -- Łukasz 'sil2100' Zemczak <lukasz.zemczak@ubuntu.com>  Thu, 04 Oct 2018 19:30:17 +0200
 
+livecd-rootfs (2.408.38) xenial; urgency=medium
+
+  * ubuntu-cpc: Handle a pre-existing /lib/modules in 030-root-tarball.hook
+    (LP: #1797170).
+
+ -- Daniel Watkins <oddbloke@ubuntu.com>  Wed, 10 Oct 2018 11:55:30 -0400
+
 livecd-rootfs (2.408.37) xenial; urgency=medium
 
   * debian/dirs: add debian/dirs entry for empty includes.chroot dir
diff --git a/live-build/ubuntu-cpc/hooks/030-root-tarball.binary b/live-build/ubuntu-cpc/hooks/030-root-tarball.binary
index 30a70d02..e5bdc2c5 100755
--- a/live-build/ubuntu-cpc/hooks/030-root-tarball.binary
+++ b/live-build/ubuntu-cpc/hooks/030-root-tarball.binary
@@ -19,7 +19,7 @@ chroot binary/boot/filesystem.dir chmod +x /usr/sbin/grub-probe
 env DEBIAN_FRONTEND=noninteractive chroot binary/boot/filesystem.dir apt-get --purge remove --assume-yes '^linux-.*' 'linux-base+'
 env DEBIAN_FRONTEND=noninteractive chroot binary/boot/filesystem.dir apt-get --purge remove --assume-yes '^grub-.*'
 env DEBIAN_FRONTEND=noninteractive chroot binary/boot/filesystem.dir apt-get autoremove --purge --assume-yes
-chroot binary/boot/filesystem.dir mkdir /lib/modules
+chroot binary/boot/filesystem.dir mkdir -p /lib/modules
 
 chroot binary/boot/filesystem.dir rm /usr/sbin/grub-probe
 chroot binary/boot/filesystem.dir dpkg-divert --remove --local --rename /usr/sbin/grub-probe