Diamond Comic Distributors, a linchpin in the distribution of comics to comics shops since it was founded in 1982, has made a Chapter 11 bankruptcy filing in the U. S. Bankruptcy Court for the District of Maryland.
According to the filing, Diamond has received $41 million in debtor-in-possession financing from JP Morgan Chase that will be used to fund operating expenses and to meet its working capital needs. The filing also states that Diamond has received a stalking horse bid from an affiliate of Universal Distribution to acquire Diamond’s Alliance Game Distributors division for $39 million.
In addition to an offer to buy its Alliance business, Diamond said it has received “strong interest” from Universal to acquire Diamond UK. The future of other Diamond properties, including Diamond Book Distributors, is more uncertain, with the bankruptcy announcement saying only that Diamond has received interest from potential buyers.
“We remain committed to finding additional buyers for our businesses,” said Diamond president Chuck Parker, in a statement.
As the one-time undisputed king of comics distribution to comics shop, Diamond leveraged the increased popularity in comics to expand into new areas, including the distribution of graphic novels to bookstores and other outlets through Diamond Book Distributors. The booming interest in all things related to comics, however, brought in more competitors, leading to a number of major comic book publishers leaving the distributor for such upstart rivals as Lunar Distribution.
Penguin Random House and Simon & Schuster have also broken into distributing to the direct market as well as through the typical books channel, which has challenged Diamond Book Distribution’s business. Diamond suffered a further blow as comics sales through comics shops began to slide; Bleeding Cool estimates that between 2020 and 2023, Diamond lost 84% of its comics business.
Despite defections from Diamond Book Distribution, the company still remains an important distributor for graphic novel indie presses. The bankruptcy filing of its parent company marks yet another blow to the indie publishing world.
In filings released the evening of January 14, Diamond disclosed that it had current assets ranging from $50 to $100 million, with total liabilities in the same range. The company said that it will have funds to pay its unsecured creditors.
The company's largest creditor is Penguin Random House, which is owed $9.2 million, while Disney Consumer Products is owed $1.7 million. Other publishers listed among the top 30 creditors are Wizards of the Coast, out $914,601; Simon & Schuster, owed $600,144; Viz Media, out $421,204; Titan Publishing Group, owed $357,414; and Square Enix, out $314,295.
This story has been updated with further information.
