Diamond Comic Distributors Declares Chapter 11 Bankruptcy In Another Blow To Mainstream Comic Books

Diamond Comic Distributors has been on the decline for years as the former monolith in comic book store distribution, but now a message from their CEO revealed the company is filing chapter 11 bankruptcy.

Comic shop owners have always grumbled about Diamond Distribution. Their ordering platform, customer service, and deliveries often left a lot to be desired.

Troubles for the company started during the pandemic, when Marvel and DC Comics, among other smaller companies, opted to move their distribution outlets to Penguin Random House through a standard book distributor, abandoning Diamond.

The company was left with a specialty collector’s market in action figures, as well as the smaller publishers’ work that still needed distribution.

Last year, Diamond Distribution had troubles delivering early in the holiday season, the worst time possible for comic shops that often have their years made or broken from their fourth quarter Christmas sales. The shipping woes followed the closing of their Pittsburgh warehouse, which they had intended on moving anyway, but the landlord evicted them early as they had their lease going on a month to month business while they decided what to do. As a result, Thanksgiving week comics and supplies were delivered a week late.

Further troubles compounded in December when Diamond apologized for more shipping delays. The owner sent a message to retailers, “Disruptions from the consolidation of accounts to Diamond's Olive Branch Distribution Center have been compounded by the Thanksgiving holiday, despite the Distribution Center teams working through the weekend. For product with an on-sale date of December 4, many shipments will be delayed to Wednesday or Thursday of this week. Due to the changes to how we process shipments, Operations is unable to provide Retailer Services with information on shipments any earlier than when they appear on the Retailer Services Website's Shipment Tracking page. The most up to date information for retailers is on that page, so please check there each morning for tracking information. With a full 7 days to work this week, the Operations teams' goal is to minimize disruptions for products with an on-sale date of December 11, but December is a challenging month under the best circumstances so we will provide further updates as they are available. We appreciate your support and patience during this complex change, and are working diligently to resolve these issues and return to a reliable schedule such as we have maintained in the past."

Now, a new message has gone out to retailers about Diamond Distribution declaring bankruptcy. The message read, “"Dear Valued Customer, I'm writing to share one of the most challenging messages of my career. Earlier today, Diamond made the difficult but necessary decision to file for Chapter 11 bankruptcy. This step is intended to stabilize our financial foundation and protect the most vital aspects of our business. This decision was not made lightly, and I understand that this news may be as difficult to hear as it is for me to share. The Diamond leadership team and I have worked tirelessly to avoid this outcome but the financial challenges we face have left us with no other viable option. Chapter 11 will provide us with the opportunity to restructure and address our financial obligations. This process will likely include the sale of key assets of Diamond Comic Distributors. We have already received a commitment from Universal Distribution to purchase Alliance Game Distributors coupled with a signed Letter of Intent to purchase Diamond UK, and we remain committed to pursuing offers for all Diamond lines of business. What does this mean for you? I want to reassure you that, with secured financing in place to support our operations, Diamond Comic Distributors is committed to continuing business as usual throughout this process. Our plan is to continue fulfilling orders in a complete and timely fashion and we are working hard to minimize any disruptions to your orders. We will be as transparent as possible during this process and will keep you informed of significant developments. If you have any questions, please reference the Retailer FAQs below, also available on our Retailer FAQs page on the Retailer Services Website. With further inquiries, as always, you can submit a ticket via our online Retailer Support Center or contact us at customersupport@diamondcomics.com. Thank you for your support. We are committed to your business and ensuring that your needs are met as we navigate this process.”

X user @Thor_Odinson reacted to the bankruptcy, “The end result of #GetWokeGoBroke. The comic industry fully embraced DEI while pushing out older fans in pursuit of the “modern audience.” Problem is, they chased away the core audience while the modern audience never materialized. And now here we are with a collapsing industry.”

Nerdrotic also chimed in on the situation, “Diamond Comic Distributors has filed for bankruptcy.” He also included a GIF signaling his joy.

Kneon from Clownfish TV also mocked the bankruptcy, “Hey, maybe we’ll look into distribution through Diamond for our books, and —-“ along with a GIF of a baby running around in circles.

It seems most fans and comic industry insiders are more amused by the distribution company going bankrupt than surprised or frightened by it. However, it is another sign that the legacy comic book industry model is no longer working, with independent publishers at risk of losing their spot in stores.

What do you think of Diamond Distribution declaring bankruptcy? Leave a comment and let us know.

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