After weeks — or months or years, depending on who you ask — or increasing issues, Diamond Comics Distributors has officially declared bankruptcy.
Per a press release distributed by the company, they have filed for a voluntary petition of relief under Chapter 11. Which, to be clear, does not mean the company is shutting down, so much as looking for financial help in continuing. Or as comic book writer Fred Van Lente noted on Bluesky, “It’s not GOOD, but, you know. It’s not the end.”
Per the company, as part of their restructuring, they have received a $39 million bid from Universal Distribution to purchase Alliance Game Distributors, a portion of the company. In addition, they have received $41 million in financing from JP Morgan Chase to help meet adequate capital during the restructuring period.
In addition to the bid for Alliance Game Distributors, Diamond has also received what they characterize as “strong interest” in their business divisions, including a letter of intent from Universal to acquire Diamond UK. They are also “actively pursuing offers” for Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys, “as well as its main comic, toy, and collectible distribution lines.”
President Chuck Parker noted in a statement that, “Diamond has been a linchpin of the comic book industry for over four decades. Our priority has always been to provide quality service to publishers, retailers, and, ultimately, comic fans, and we remain committed to finding additional buyers for our businesses.”
Added Angelo Exarhakos, President and CEO of Universal, “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.”
So what does this mean for consumers? Nothing, as of yet. Business should continue as usual until the pieces of the company are sold. And even then, it’s possible Diamond may continue to operate in some form, although likely much, much smaller than it has been currently.
In addition, part of the reason Diamond is struggling is the exit of major exclusive partners. DC Comics switched to Lunar, while other publishers like BOOM! Studios are headed to Penguin Random House. So those comics should hit stores as normal. Though that said, on the store end anyone who was ordering solely through Diamond may have to restructure their own ordering schedule.
One major question? Free Comic Book Day, which is supposed to be held this year on May 3. The company has asserted that it remains committed to keeping the holiday/sales tool going this year… But that’s a whole four-ish months away, so the situation may change.
More on this as it develops.
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