Diamond Comic Distributors Files Voluntary Petition for Relief Under Chapter 11

Diamond Comic Distributors

Diamond Comic Distributors has, sadly, announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland to facilitate the restructuring of its business.

The first hearing in the case will take place later today, 15th January 2025, before the judge, David E. Rice.

Britain’s Titan Publishing, publishers of Titan Comics, are among the major creditors, owed over $350,000 by Diamond.

Founded in 1982, Diamond Comic Distributors offers a multi-channel platform of publishing, marketing and fulfillment services, coupled with a global distribution network for its retailers, publishers and vendors. Currently, Diamond is still owned by Geppi Family Enterprises, who also own Alliance Game Distributors, Diamond Book Distributors, Diamond UK, Diamond Select Toys, Gemstone Publishing, E. Gerber Products, Diamond International Galleries, Hake’s Americana & Collectibles, Baltimore magazine, and its own branded entertainment museum.

As part of the restructuring process, the company has received a $39 million stalking horse bid from an affiliate of Universal Distribution, a prominent competitor, for Alliance Game Distributors, and have also entered into a Non-Binding Letter of Intent with Universal to acquire Diamond UK.

Diamond UK was originally Titan Distribution, part of the Titan Comics and Forbidden Planet family of companies. After its purchase,  it remained a separate vendor of Diamond Comic Distributors within the family structure of businesses, created by Steve Geppi.

Diamond established an information line for interested parties: 866-771-0556 (US & Canada toll free) and 818-639-4849 (International). You can also send an email to DCDInquiries@OmniAgnt.com

Reporting on the news yesterday, Comics Beat noted “Although it’s not ‘the final bankruptcy’, the situation is nevertheless dire, as creditors include comics publishers, and in the past a distributor going under has had a huge effect on publishers.”

In a letter to DCD retailers published in full by Comics Beat, Diamond cited cause for the Chapter 11 filing primarily as the result of “The unexpected loss of certain exclusive publisher relationships, compounded by an overall contraction in consumer spending, increased inflation, and a loss of margin on key print product lines.

“Post-pandemic, the comic book industry at large has seen a decrease in consumer activity paired with rising operating costs, and Diamond is no exception,” the statement continued. “Shrinking margins, growing expenses, and a decline in sales, as well as the desire to achieve the best possible outcome for the majority of our vendors, customers, and employees all contributed to this decision.”

downthetubes has heard from UK publishers large and small saddened by uncertainty for the fate of staff at Diamond and the impact the situation will have on comics distribution.

2000AD publisher Rebellion, for example, who we have not yet approached for comment, utilises Diamond for distribution of its titles to comic shops. (The company’s newsstand distribution in the UK is handled by a different distributor).

Comics Beat also reports Diamond’s bankruptcy filings are available and run to hundreds of pages, and include the list of the top 30 unsecured creditors, which is led by Penguin Random House, Diamond’s supplier for comics and graphic novels from Marvel, IDW, and Dark Horse, to the tune of more than $9 million. The second company on the list is Bandai, with only less than half of that owed, $4.4 million. 

“Seven creditors are owed more than $1 million, but only one is a publisher, PRH. Most of the companies on the list are toy companies, suggesting that the shift to carrying other kinds of merchandise was in full swing.”

Comics Beat notes the other top creditors who sell books include Disney Consumer Products ($1,712,447), Simon & Schuster ($600,144), Lunar Distribution ($496,967), who have announced they would pick up most Diamond’s FOC orders for 13th January 2025, Viz Media ($421,204), Titan Publishing ($357,417), Square Enix ($315,295), Dynamic Forces aka Dynamite ($217,317) and Udon Entertainment ($202,694). Do note that most of those companies also sell toys, so the debt may not be all comics. 

Retailer site ICV2 notes US comic companies not listed in this creditor list include BOOM! Studios, still a Diamond distribution client although it has planned to move to PRH this summer, and DC, which supplies Diamond UK. “Any money owed those companies must have been in amounts below the top 30 creditors, or secured,” ICV2 notes. “Diamond has not yet filed its schedule of secured creditors.”

Diamond’s Post Chapter 11 Plan

Diamond Comic Distributors

In court documents and a brief press release, Diamond says it has received commitments for up to $41 million in debtor-in-possession (DIP) financing from JP Morgan Chase that will be used to fund post-petition operating expenses and ensure adequate working capital to meet its obligations to associates and suppliers. 

In addition to securing DIP financing, and a stalking horse bid from an affiliate of Universal Distribution, a prominent competitor for Alliance Game Distributors, Diamond has received strong interest in its specialised business divisions, having also entered into a Non-Binding Letter of Intent (LOI) with Universal to acquire Diamond UK, a wholly owned subsidiary of Diamond.

A stalking horse bid sets the minimum price for an auction, ensuring a guaranteed baseline offer while encouraging additional bidders.

Alliance Game Distributors is a recognised leader in the gaming industry, offering a range of services and programs to our customers. Working with over 250 vendors to provide a large variety of games to retailers around the world, they specialise in the distribution of board games, card games, miniatures, role playing games and thousands of gaming tools and accessories. 

Diamond is actively pursuing offers for, and has received interest from potential purchasers for, its other business units, including Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys, as well as its main comic, toy, and collectible distribution lines. 

“Diamond has been a lynchpin 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,” said President Chuck Parker. 

“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,” said Angelo Exarhakos, President and CEO of Universal. 

Diamond UK Still in Business

Diamond UK Logo

In a letter to UK comic retailers supplied by Diamond, published by Bleeding Cool, Mike Holman, Diamond UK General Manager, noting the filing for Chapter 11 bankruptcy, sought to reassure customers Diamond UK is not in bankruptcy “and will continue to operate business as usual throughout this process.

“Our top priority is to continue fulfilling orders and serving our customers without disruption,” he wrote. “Diamond UK is a profitable and stable business and will likely be sold as part of this process. In fact, Diamond has already received a signed Letter of Intent from Universal Distribution to purchase Diamond UK.

“We are confident that under new management, we will be well-positioned for future growth. We will be as transparent as possible throughout this process and will keep you informed of any significant developments… Thank you for your continued support.”

• Diamond is online at diamondcomics.com

Diamond established an information line for interested parties: 866-771-0556 (US & Canada toll free) and 818-639-4849 (International). You can also send an email to DCDInquiries@OmniAgnt.com

The bankruptcy cases are pending before the Honourable David E. Rice in the District of Maryland, and are being jointly administered under case number 25-10308. The court documents are here

Further Reading

These news posts are listed in order of most recent first…

ICV2: A Few Thoughts on the Diamond Bankruptcy by Rob Salkowitz
Published 16th January 2025

Rob notes Diamond’s troubles go back further than the events of the past year, or even the past five years, but the Chapter 11 leaves the US comic industry in a worse spot than we can even imagine, for a few reasons that became clear in the court filings

CBR: Diamond’s Bankruptcy Will Make or Break the Entire Comics Industry
Published 14th January 2025

Bleeding Cool: How Much Does Diamond Owe? Comic Book Folk React To Bankruptcy News
Published 14th January 2025

ICV2: Penguin Random House is Diamond’s Largest Unsecured Creditor
Published 14th January 2025

Diamond owes PRH $9.2 million, due to in large part to Diamond’s position as sub-distributor of publishers for which PRH is now the primary

Comics Beat: Diamond Comics files for Chapter 11 bankruptcy
Published 14th January 2025

ICV2: Diamond Files For Reorganization Under Chapter 11 Bankruptcy
Published 14th January 2025

Comics Beat: More on Diamond Bankruptcy: Lunar reacts; PRH owed $9 million
Published 14th January 2025

Diamond Comic Distributors Statement: Diamond Comic Distributors Files Voluntary Petition for Relief Under Chapter 11

Comics Beat: Diamond Comics is having a very bad few weeks
Published 12th December 2024

Comics Beat: Diamond to close Plattsburgh warehouse
Published 24th October 2024



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