Diamond Comics Distributors, which spent decades as the primary comics distributor in North America, has announced they’ve filed for “a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court.”
This means they’ve filed for protection from those they are indebted to as they reorganize their business, keeping them operational as they attempt to pay back their creditors. This is different than Chapter 7 bankruptcy, where a company goes completely under, is sold for parts and the money is used to pay back those they owe.
As a part of their restructuring, Diamond says they’ve already started negotiations to sell their Alliance Game Distributors business to Universal Distribution. It sounds like Universal could be a potential buyer for their Diamond UK business as well. They also said they’re looking at potential buyers for their other business units, including Diamond Book Distributors, Collectible Grading Authority and Diamond Select Toys, as well as their main comic, toy and collectible distribution lines.
“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,” said Diamond President Chuck Parker in the announcement.
They’ve also secured funding from JP Morgan Chase that will be used to fund their operating expenses and ensure adequate working capital “to meet its obligations to associates and suppliers.”
Once the largest — and pretty much only — comics distributor in North America, Diamond Comics Distributors has had a rough go of it since the COVID pandemic. It started when they stopped operating for a time at the beginning of the pandemic, like many companies did, and DC elected to change distributors from Diamond to Lunar Distribution and UCS Comic Distributors, which were essentially new distributors set up at the time by comics retailers Discount Comic Book Service and Midtown Comics. Only Lunar is still around.
Other publishers followed suit since then, including Marvel, Dark Horse, IDW, Image Comics and BOOM! Studios, each electing to sign exclusives with either Lunar or Penguin Random House (BOOM! is actually now owned by PRH). Diamond remained a wholesaler for many of these companies, but it did mean a loss of volume since they were no longer the exclusive distributor, as they mention in an FAQ that went out to retailers this week:
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 contributed to this decision. After exploring all available options, Diamond determined that filing for Chapter 11 is the best course of action to restructure its operations and secure the most favorable outcome for all stakeholders.
ICv2 notes that Diamond will no longer be a wholesaler for Image titles starting in February, so retailers will need to get their Image titles directly from Lunar.
Diamond served not only as a distributor of comics over the years, but also as an advocate — while Free Comic Book Day was the idea of retailer Joe Fields, it was Diamond who helped bring the event to retailers every year. They say they still plan to support this year’s event in May, but there could be changes:
Diamond remains committed to supporting Free Comic Book Day (FCBD) as planned. We understand the importance of this event for retailers and fans alike and will be working closely with participating publishers to ensure the event proceeds as smoothly as possible. However, as we navigate the restructuring process, there may be changes or adjustments. In the event Diamond is unable to fully facilitate FCBD, we will be actively exploring contingency plans to ensure that stores can still receive materials and participate in this critical event. Updates will be provided as more details become available.
Retailer Brian Hibbs posted his reaction to the news on Facebook:
There are a LOT of people who were actively rooting for Diamond comics to fail. Well, your wishes appear to be coming true, as Diamond files for Chapter 11, and this is going to be TRULY dire news for the Direct Market, at least in the short and medium term. Say “Goodbye” to most smaller publishers, and “so long” for the right opportunities for a majority of smaller and unproven creators.
Never EVER forget that the blame for this falls directly upon DC Comics, and we should never forget this, or ever withhold that blame.
My best wishes for Steve Geppi , as well as all of the staff at Diamond — and my most fervent prayers for creators and my fellow retailers that we’re all going to be able to navigate this disruption to the market.
PEOPLE: Penguin Random House DOES NOT WANT any accounts smaller than they already have, and Lunar (besides being the primary retail competition for all of us) is really REALLY bad at their jobs and, in my personal estimation, could not possibly HANDLE adding more vendors. 2025 is going to be a nightmare.
The Beat has a breakdown of Diamond’s top creditors. This story will no doubt continue to develop as we see how the reorganization and selling of assets shakes out.