Monopoly to Malfeasance: Looking at Diamond Distribution’s Bankruptcy

by

Originally dominating comic book distribution with an apparent disdain for competition, the company has recently issued a Businesswire press release indicating their financial decline and intent to file for Chapter 11 bankruptcy protection.

Diamond Comic Distributors recently chose to ask for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Maryland’s U.S. Bankruptcy Court, a move intended to streamline their business operations. In this restructuring process, Diamond has received a $39 million opening bid from Universal Distribution’s affiliate for Alliance Game Distributors.

The Company has secured promises for approximately $41 million as Debtor-in-Possession (DIP) funding from JP Morgan Chase, which can be utilized to cover expenses following the filing of a petition and maintain sufficient resources to fulfill its commitments towards employees and suppliers.

As a passionate cinephile, I’m thrilled to share that Diamond has been making waves in the industry. Apart from securing DIP financing and placing a stalking horse bid for Alliance Game Distributors, they’ve also attracted strong interest in their specialized business divisions. In fact, they’ve entered into a Non-Binding Letter of Intent (LOI) with Universal to acquire Diamond UK. On top of that, they’re actively considering offers for various business units such as Diamond Book Distributors, Collectible Grading Authority, Diamond Select Toys, and their primary comic, toy, and collectible distribution lines. It’s an exciting time for Diamond, indeed!

Since their business was quite pompous, and some self-centered ideologues seemed to believe that the industry relied solely on them, it’s not a great loss, and I suspect they haven’t been beneficial to the independent sector either. It’s possible that the money they received for restructuring won’t make a difference in the long run.

As a film enthusiast, I find it quite intriguing how some cinema chains or stores are handling this recent development. For instance, Brian Hibbs from Comix Experience expresses his thoughts in a similar manner.

Criticizing DC Comics for creative mistakes under Dan DiDio may be valid from an artistic standpoint, but blaming them for the current market conditions is too easy. Also, it’s important to remember that Marvel started this trend by venturing into distribution decades ago. Furthermore, if Diamond was monopolizing the industry and making it difficult for other distributors to compete, that’s unfair. So, why is Mr. Hibbs quick to blame DC instead of acknowledging the broader issues?

It seems he’s indifferent towards the persistence of pamphlets over paperbacks and hardcovers, and if unique covers are seldom seen, that’s another aspect the industry overlooks. There’s a vast market for murals waiting to be tapped, yet publishers persist in using a format that remains hidden from public view, except maybe as online previews. However, even this is laughable. If passionate artists truly value their craft, they should explore creating illustrated murals of fantasy characters – something I believe artists like Frank Frazetta were already doing decades ago.

Regarding Diamond, it might be beneficial for anyone criticizing others to remember that even Diamond is prone to errors. Moreover, it’s time for the comic medium to confront the issue head-on: namely, should comic books continue to use pamphlets as their primary format? This question needs to be addressed directly.

Read More

2025-01-21 17:30