Alliance Entertainment’s Bold Move: Buying Diamond Comic Distributors After Bankruptcy!

In simple terms, Alliance Entertainment, a Florida-based company dealing in music, movies, video games, electronics, and collectibles, has been chosen as the successful bidder in Diamond Comic Distributors‘ bankruptcy sale. This deal encompasses Diamond Comic Distributors (U.S.), Alliance Game Distributors, Diamond Select Toys & Collectibles, and Collectible Grading Authority. The purchase is subject to approval by the U.S. Bankruptcy Court for the District of Maryland, with a court hearing scheduled for March 27, 2025. If all goes well, the transaction should be finalized by April 2025.

At the auction, there was intense bidding among several parties, with Universal Distribution putting forward a $39 million bid for Alliance Game Distributors. Yet, the bids from Alliance Entertainment were said to be notably higher than those of their competitors. The acquisition will be funded by increasing the size of an existing credit facility, upgrading it from $120 million to a revised $160 million.

Bruce Ogilvie, Chairman of Alliance Entertainment, showed great excitement about the strategic possibilities of incorporating Diamond’s assets into their business. He stated, “We are truly delighted to welcome the skilled teams from Diamond Comic Distributors, Alliance Game Distributors, and Collectible Grading Authority into the Alliance Entertainment group.” Ogilvie went on to say, “These are dedicated experts who have forged strong connections within the fan base, hobby, and collectibles communities. We can’t wait to assist them, learn from them, and foster their growth. To the suppliers, creators, and publishing partners that make this industry so vibrant, we’re eager to work together and create enduring value. And to our customers who depend on these brands daily, we reaffirm our dedication to providing you with the top-notch service and dependability you have come to expect, and aim to surpass it.

Alliance aims to utilize Diamond’s history in distributing comic books and its connections with more than 5,000 retailers to broaden its product offerings and increase cross-selling possibilities. According to Jeff Walker, CEO of Alliance Entertainment, this move represents a significant chance to extend our dominance in the gaming and physical collectibles market and further penetrate vibrant, fan-driven categories. With their collection of exclusive titles, robust retail ties, and substantial presence in comics, tabletop games, and collectible merchandise, these businesses align well with our current distribution and fulfillment model. We anticipate substantial cross-selling potential between our product lines and customer bases, increasing the reach of our expanded product range across both mainstream and specialized sales channels.

42-year-old comic book distribution giant, Diamond Comic Distributors, filed for Chapter 11 bankruptcy in January 2025 due to financial troubles worsened by shrinking profits and increasing expenses. This purchase signals a major change in the comics and collectibles sector as Diamond prepares for a new management. More information about the deal will be disclosed following the upcoming court hearing.