Posted in: Comics, Current News | Tagged: AENT, diamond

Alliance Entertainment (AENT) Cancels Its Purchase Of Diamond Comics

Alliance Entertainment cancels its purchase of Diamond Comic Distribution. Are Universal Distribution and Ad Populum now Diamond's owners?

Published Fri, 25 Apr 2025 19:44:07 -0500

by Rich Johnston

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Article Summary

Alliance Entertainment cancels its bid to acquire Diamond Comic Distributors via Chapter 11 auction.
Universal Distribution and Ad Populum emerge as potential new owners of Diamond's assets.
SEC filing reveals details of AENT's sudden withdrawal from the purchase agreement.
Bankruptcy process faced legal disputes, with Universal and Ad Populum's back-up bid reconsidered.

Here we go again. Alliance Entertainment or AENT has issued an SEC filing as a Notice Of Termination over their agreement won in Chapter 11 bankruptcy auction to buy Diamond Comic Distributors.

Alliance Entertainment (AENT) Cancels Its Purchase Of Diamond Comics — SEC filing screencap

The filing states first that"On April 25, 2025, Thomas Finke advised the Board of Directors of Alliance Entertainment Holding Corporation (the "Company") that he is resigning as a director of the Company effective May 1, 2025." Is this relevant? I don't know. Because it goes on to say that "On April 24, 2025, the Company sent a Notice of Termination to Diamond Comic Distributors, Inc. ("Diamond"), terminating the previously executed Asset Purchase Agreement to acquire substantially all of the assets of Diamond through a court-supervised bankruptcy process. The termination was effective immediately." It was signed by Executive Chairman and recent podcast star, Bruce Ogilvie.

Bruce Ogilvie declined to comment or clarify when approached by Bleeding Cool earlier today. Currently this also means that Universal Distribution and Ad Populum should be the new owners of Diamond Comic Distributors after all. Unless, of course, they have moved on. Basic Fun was the third highest bidder…

On the announcement of Chapter 11 on the 14th of January, Diamond started a 13-week bankruptcy process run by financial firm Raymond James, got finance to operate, and announced an auction for its assets.
Those assets included Diamond Comic Distribution, Alliance Gaming Distribution, Diamond Select Toys, CGA and Diamond UK
Universal Distribution was named the Stalking Horse bidder for Alliance Games and Diamond UK, which required a purchase commitment of thirty-nine million dollars but with certain discounts and privileges for taking that position.
The auction took place, and Alliance Entertainment, or AENT, was named the top bidder for the assets of $72,245,000, though not for Diamond UK. This was widely announced, including by Diamond themselves.
Then we learned that a joint bid by Universal Distribution and Ad Populum came second and was named the back-up bid, with a bid of $69,130,000. With Universal getting Alliance and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun were third with fifty million.
A court hearing with the Honorable Judge Rice in Courtroom 9-D at the United States Bankruptcy Court for the District of Maryland at 10 am was intended to ensure the legality of the bid and the process.
But instead over the weekend, the debtors declared that they had chosen the back-up bid from Universal and Ad Populum instead of AENT, despite AENT having bid more. No reason was given.
AENT filed a lawsuit regarding this decision.
It took the bankruptcy court to reverse that decision and state that AENT with the higher bid had won, though they would have to withdraw their lawsuit.,
Now AENT has terminated their winning bid and purchase.