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.
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