For all those who have no success editing /etc/systemd/logind.conf or
found that rm ~/.config/xfce4/xfconf/xfce-perchannel-xml/xfce4-power-
manager.xml only works temporarily, I had success using gksudo gedit
/etc/UPower/UPower.conf and then setting IgnoreLid=true.

A second work around is to hit ctrl+alt+f1, sign in using your username
(lower-case) and password, then enter sudo restart lightdm, followed by
your password again (some times this has to be done all with a pitch
black screen)

Not ideal I know but is the best solution i've found.

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https://bugs.launchpad.net/bugs/1307545

Title:
  Power Manager settings are ignored when closing laptop lid

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