Diamond Comic Distributors has announced it has filed for bankruptcy and that all of its assets are on the table to be sold off.
Below you can read the message from Chuck Parker, president of Diamond Comic Distributors, as well as the official press release.
The message says Diamond has filed for Chapter 11 bankruptcy, which means the business can remain open while they reorganize their debts.
According to the message, Diamond will be selling off its Alliance Game Distributors division and its Diamond UK division to Universal Distribution, the distributor of DC Comics.
The message says “we remain committed to pursuing offers for all Diamond lines of business.”
Parker adds Diamond will remain open and will be fulfilling all orders.
According to the bankruptcy documents, Diamond lists 30 unsecured creditors. These creditors are owed amounts ranging from $9.2 million down to $163,000. Penguin Random House, the supplier for Marvel Comics and others, is identified as the largest creditor being owed $9.2 million, followed by Bandai ($4.3M) and NECA ($2.68M).
Press release
Diamond Comic Distributors Files Voluntary Petition for Relief Under Chapter 11
- Company Received Commitments for $41 Million in DIP Financing
- Universal Distribution Has Made A $39 Million Stalking Horse Bid for Alliance Game Distributors and Non-Binding Letter of Intent to Buy Diamond UK
HUNT VALLEY, Md. – January 14, 2025 – Diamond Comic Distributors (“Diamond” or “the Company”), today announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland to facilitate the restructuring of its business. As part of the restructuring process, Diamond has received a $39 million stalking horse bid from an affiliate of Universal Distribution (“Universal”) for Alliance Game Distributors.
The Company has received commitments for up to $41 million in debtor-in-possession (DIP) financing from JP Morgan Chase that will be used to fund post-petition operating expenses and ensure adequate working capital to meet its obligations to associates and suppliers.
In addition to securing DIP financing, and a stalking horse bid for Alliance Game Distributors, Diamond has received strong interest in its specialized business divisions, having also entered into a Non-Binding Letter of Intent (LOI) with Universal to acquire Diamond UK. Diamond is actively pursuing offers for, and has received interest from potential purchasers for, its other business units, including Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys, as well as its 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 President Chuck Parker.
“Universal Distribution is looking forward to working with the Alliance and Diamond UK teams to bring a stronger balance sheet and growth opportunities to retailers and suppliers. Both companies have deep roots in the industry, and we look forward to continuing that into the future,” said Angelo Exarhakos, President and CEO of Universal.
