Sadly, Diamond Comic Distributors has filed for Chapter 11, a protective measure in the United States Bankruptcy Court.
Chapter 11 means Diamond can keep the lights on, is protected to a degree from hostile actions and has some time to sort itself out. This usually means finding a buyer for the business or making massive changes.
Diamond Comic Distributors owns Alliance Game Distributors. Both companies act as a middleman between publishers and stores. The company specialises in warehousing, order fulfilment, and persuading retailers to stock comics, graphic novels, tabletop games, and sometimes toys, merch, and apparel.
We’re not legal experts here at Geek Native, but we suggest that Diamond‘s biggest publishers’ clients will already have other partners in place or can easily secure one. We fear that the smaller publishers are more likely to be caught out and hit hardest by any disruption.
Diamond Comic Distributors ran Free Comic Book Day, an initiative to help support local comic book stores and introduce readers to new titles.
However, there is some hope as Diamond says they have received a $39 million stalking horse bid from an affiliate of Universal Distribution to buy Alliance Game Distributors. A stalking horse bid is an opening offer that sets the minimum price for others to meet.
In addition, less secure and without guarantee is a Non-Binding Letter of Intent (LOI) from Universal to buy Diamond UK.
Angelo Exarhakos, President and CEO of Universal, in the press release from Diamond explains their interest.
Universal Distribution is looking forward to working with the Alliance and Diamond UK teams to bring a stronger balance sheet and growth opportunities to retailers and suppliers. Both companies have deep roots in the industry, and we look forward to continuing that into the future.
Diamond also owns the Collectible Grading Authority, a professional service to help validate claims that rare comic books are authentic and in good condition.
What caused this?
COVID-19 and the lockdown were cruel to logistics, but Diamond’s 2020 took an extra nasty turn when key publisher clients like DC Comics, Marvel, and IDW Publishing ended their exclusive deal or broke up. Diamond still has deals with Image Comics, Dynamite Comics, and Valiant Entertainment.
What does it all mean?
It’s the end of an era, and, as is often the case, the smaller businesses suffer.
(Via Diamond)
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