What’s Going On Here?
More Rambling About Diamond ...
Greetings,
As I’ve discussed in recent Cosmic Updates and video chats with Kevin LaPorte (FlatLine Comics), the state of our industry’s former top-tier distributor—Diamond Comics—is precarious, teetering on the brink of collapse. On January 14th, the once-monolithic distributor of comics, toys, games, and pop culture nicknacks filed for bankruptcy. While this was far from an ideal situation, there was initial hope that Diamond might emerge from the process with some semblance of stability. However, recent developments have made the writing on the wall unmistakably clear.
Over the weekend, I received a letter—an actual, physical legal notice—from Diamond Comic Distributors Inc., c/o Omni Agent Solutions Inc. Now I don’t know abut you, but when I get a legal notice my eyebrow tends to rise. The contents of the envelope? Details about the upcoming auction of Diamond’s remaining assets, including Free Comic Book Day, Fandom World, Gentle Giant, and several others. The legalese explained how the auction would be conducted, how to bid, and how to make claims against the auction. The key takeaway? The deadline to submit bids is March 19th, with the final auction scheduled for March 27th.
This seems like the definitive end of Diamond. If the company is being dismantled and its assets auctioned off, what’s left? And yet, something just is not adding up for me.
For instance, I just received another issue of Previews—soliciting books scheduled to arrive in May, well past Diamond’s presumed funeral. Meanwhile, the Free Comic Book Day TikTok account is still posting content, promoting an event set to take place well after the company’s supposed demise. It’s puzzling. Kevin’s theory is that perhaps Diamond is legally obligated to continue “business as usual” under some kind of court order. That would explain the continued solicitations, but it still raises an important question.
Why the heck are the publishers playing along?
Take the cover of the latest Previews catalog, which prominently features Dynamite’s Gargoyles: Demona, slated for a May release. If Diamond’s fate is sealed, why would Dynamite—along with publishers like Archie, Aspen, American Mythology, Magnetic, and Silverline—continue soliciting books through them? They must know that even if someone acquires Diamond’s assets, the infrastructure required to distribute these books simply won’t be in place.
Unless…
Perhaps these publishers know something the general public doesn’t. Could there be an eleventh-hour buyer waiting in the wings to keep Diamond afloat? As a publisher who has been distributed by Diamond for more than a decade, I haven’t received any inside information beyond this legal notice, so I can’t say for certain. But if a last-minute rescue is in play, the bigger question remains: Is Diamond even salvageable?
The company wasn’t exactly a beacon on the hill for the industry before filing for Chapter 11. Many comic shop owners—its primary customers—were already frustrated with its service, and bankruptcy has only further tarnished its reputation. If someone does attempt to resurrect Diamond, will retailers ever trust them again?
Sorry no fun Cosmic News in this Update, but I promise I’ll have some good Cosmic stuff in the next one. In the meantime, I want to hear from you.
What are your thoughts on the end of Diamond Comics Distributors? Do you think there’s another shoe left to drop? And more importantly, is Diamond even worth saving at this point?
Let’s keep the conversation going. And as always…
Stay Cosmic,
Martin
I’ve spoken with American Mythology quite a bit, they got stiffed but have no distribution otherwise and their titles that are solicited were all in progress with Diamond prior to Feb. They’re relying on the direct sales to consumers to try to float through.
I also wonder if the any potential buyer wants Diamond to auction non-essential assets before they're willing to close any deal. I don't think they can legally require it, but Diamond will do whatever a potential buyer wants at this point.