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Ad Hoc Reminds The Court Who Owns The Comics Diamond Want To Liquidate

The Ad Hoc Committee reminds the court who owns the comics that the Diamond debtors want to liquidate and Ad Populum are already selling

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The Ad Hoc Committee of Creditors' subpoena requiring Sparkle Pop to produce a witness to testify at the upcoming hearing on the Diamond Debtors' motion to sell consigned inventory has been quashed by the courts. The Ad Hoc Committee is made up of Ablaze, American Mythology Productions, Avatar Press, Battle Quest Comics, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon and Zenescope, with two new publishers reportedly in the process of joining.

But the Ad Hoc Committee have also filed new paperwork to emphasise, in relation to other filings, that the consigned inventory of comics that the Diamond Debtors are aiming to liquidate belongs to the comic book publishers, not the bankrupt estate of Diamond, or Sparkle Pop/Ad Populum, who bought Diamond, and who have been accused of selling consigned inventory already. This stance echoes Ad Hoc's earlier objections in the case, emphasising that the goods were delivered on consignment and remain their property under bankruptcy laws. Diamond Debtors sought to enforce the automatic stay, a bankruptcy provision halting certain actions against the debtor, and the sale order, while also requesting damages from Sparkle Pop for the unauthorised sales. The Ad Hoc Committee supports halting these sales but with strict caveats, of no waiver of their ownership claims over the inventory and that any proceeds from Sparkle Pop's sales must be held in escrow by a neutral third party or the court registry, not by Diamond, until ownership disputes are resolved. They have already had one major victory, getting a court order that the Diamond Debtors must reach an agreement, or a legal victory in court over each and every publisher, rather than en masse, the legal costs of which may make it not worth their while to liquidate the stock of smaller publishers. Image Comics, not part of the Ad Hoc Committee, has already settled.

The consignors also reference testimony from Diamond's Chief Restructuring Officer, Robert Gorin, during an August 19, 2025, hearing. Gorin claimed the Transition Services Agreement (TSA) with Sparkle Pop allowed Diamond to sell consigned stock and have Sparkle Pop handle logistics like picking, packing, and shipping. However, the Ad Hoc objection states that no such provision exists in the TSA, which primarily addresses removing consigned stock from the leased warehouse, not authorising sales by a third party. The filing also objects to any order permitting Sparkle Pop to continue selling consigned goods without a court-approved assignment of contracts.

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Rich JohnstonAbout Rich Johnston

Founder of Bleeding Cool. The longest-serving digital news reporter in the world, since 1992. Author of comic books The Flying Friar, Holed Up, The Avengefuls, Doctor Who: Room With A Deja Vu, The Many Murders Of Miss Cranbourne and Chase Variant. Lives in South-West London, works from The Union Club on Greek Street, shops at Gosh, Piranha and Forbidden Planet. Father of two daughters, Amazon associate, political cartoonist.
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