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

Confirmed, AENT Tried To Buy Diamond In October To Avoid Bankruptcy

It has been confirmed. AENT, or Alliance Entertainment, tried to buy Diamond Comic Distribution in October last year to avoid bankruptcy

It was something that Alliance Entertainment (AENT) CEO and owner Bruce Ogilvie said in the Beyond Wednesdays podcast that caused so much fudd, that no one seemed to pick up on. That, before Diamond Comic Distribution moved to Chapter 11 bankruptcy, that AENT had looked into buying Diamond Comics there and then, which would have saved millions on legal procedures.

Well, Diamond/Ad Populum/Sparkle Pop has filed a new document in their lawsuit against Alliance Entertainment as part of the ongoing bankruptcy paperwork, the NDA that Bruce Ogilvie signed, that was sent on the 18th of October 2024, three months before Diamond declared Chapter 11 bankruptcy. And it seems to confirm that story. The document begins;

"Dear Bruce Ogilvie:
Your company (referred to as "you" or "your," as appropriate) has expressed interest in exploring a potential transaction (such possible transaction, the "Transaction") involving Diamond Comic Distributors, Inc. (the "Company"). In that connection, you have requested certain information (oral, written, electronic or otherwise) relating to or concerning the Company, its subsidiaries and/or affiliates, which is non-public, confidential or proprietary in nature, from officers, directors, employees or agents of the Company. All such information, whether or not identified or marked as non-public, confidential or proprietary, furnished to you and your Representatives (as defined below) either before or after the date of this agreement, together with analyses, compilations, studies, summaries, extracts or other documents or records prepared by you or your Representatives which contain or otherwise reflect or are generated from such information, are collectively referred to herein as the "Evaluation Material."

If such a sale had gone ahead, AENT would have taken on, and would have been liable for, Diamond's debts to publishers. Many publishers wouldn't have left Diamond, and Diamond would also still have the Penguin Random House business. As it stands, the eventual bankruptcy winners Ad Populum have, seemingly, made things even worse for comic book publishers. What happens next, we really don't know. But it seems that, last year in October, there was a way out. But no one took it…

You can use these Diamond tabs to keep up with the latest on Bleeding Cool and find out how we got here. Here's a timeline if you want to catch up…

• 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 financing 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 it went late. There was food and breakfast billed for.
• 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 Gaming and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
•  Bruce Ogilvie, AENT chairman, was invited onto a podcast with comic book retailers Dennis Barger and Jesse James after, apparently, watching my performance on the Beyond Wednesdays podcast in which he talked about AENT and Diamond.
• 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 that 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.
• AENT has terminated their winning bid and purchase.
• Universal Distribution and Ad Populum were back in the running
• Diamond declared "business as usual" but the courts threatened Chapter 7 over late paperwork.
• AENT sued Diamond, claiming fraud
• Diamond says it's all in hand and went back to court, wanting to be owned by Universal and Ad Populum.
• Sale of Diamond to Universal and Ad Populum was approved by the courts.
• Though Ad Populum paid more than we thought.
• Podcast blamed/credited with the current state of affairs
• Diamond tells Skyrush to stop claiming they won CGA.
• As part of court filings, Diamond released details for every comic store on account.
• We have some finality.
• Ad Populum and Universal Distribution officially acquire Diamond and related assets.
• The layoffs have begun.
• And continue.
• Diamond Select Toys has closed
• Diamond try and reassure retailers over ComicSuite
• Courts withdraw Chapter 7 bankruptcy threat
• We look at the future of Diamond Previews again
• PRH pulls out of Diamond entirely
• Well, not entirely, the UK can stay.
• Hermes Press says Diamond doesn't want to distribute their comics anymore… or anyone's.
• But Diamond pushes back on that, as they publish a new Previews.
• And they assure comic book stores that everything is going to be fine. Honest.
• Then send a letter to publishers which looks like it isn't
• Now they are looking for more money and longer to pay it back.
• Dynamite would like half a million now, please.
• Udon and Manga Classic have now cancelled all Diamond orders.
• Then so did Drem Productions
• And PRH starts to close their special retailer joining offer
• Diamond gets a fourth wave of funding and deadlines.
• Philbo Distribution launches.
• Alliance Entertainment hire seven senior Diamond staffers.
• Universal Distribution rumoured to be hiring Diamond staffers to enter the US market.
• Massive Distribution expands within Lunar
• Diamond has cancelled all their PRH orders.
• There are problems with Ad Populum's first payments to comics publishers
• Ad Populum sues AENT alleging breaches of confidentiality and staff poaching.
• Ad Populum still ghosting publishers.
• Bankruptcy timeline revealed it began in July 2024
• Diamond ends cash on delivery sales
• Hermes Press hires Steve Leaf
• Diamond responds to Dynamite
• Diamond closes No Cost Orders, sends out reminder emails to comic book stores
• Boom Studios makes layoffs.
• Zenescope pulls out of Diamond.
• AENT Says Diamond Claim They Poached Staff "Fails As A Matter Of Law"
• It's Claimed New Diamond Owner Said He's "Playing Chicken With Idiots"
• Mike Schimmel Talks, Under Oath, About The Diamond Comics Firings
• Dynamite jumps to Lunar Distribution
• Diamond takes Previews digital only
• Universal Distribution to distribute in the USA as well as Canada, starting with DC Comics
• Conflicting Statements Over Diamond, AENT And Ad Populum Lawsuits
• This Week, There Are Only Five Comics On Diamond's FOC
• Robert Gorin, Chief Restructuring Officer Of Diamond Comics, And Geek
• Titan Has Not Received Payments From Diamond Comics, Stops Supplying
• Fantagraphics Says That Diamond Is Holding Their Comics Hostage
• Kathy Govier, Chief Marketing & Communications Officer, Out At Diamond

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