Posted in: Comics, Current News | Tagged: Ad Populum, AENT, diamond
Conflicting Statements Over Diamond, AENT And Ad Populum Lawsuits
Conflicting statements made on oath over Diamond, AENT and Ad Populum lawsuits
In a series of statements introduced into the Alliance Entertainment/AENT and Ad Populum/Sparkle Pop lawsuits over the Diamond Comic Distributors Chapter 11 bankruptcy proceedings, much has come down to AENT hiring a number of people from Diamond Comic Distribution. Especially Mike Schimmel, former Vice President of Sales at Diamond, who has been there for twenty-one years, and at Capital City Distribution for over three years before that. Mike is now Senior Vice President of Sales at Alliance Entertainment (AENT) as of a few weeks ago.
In the legal case against AENT from Sparkle Pop, they state, "On May 16, 2025, one day after the APA closed, Mike Schimmel, the head of sales at Diamond Comic, abruptly resigned. On or about May 23, 2025, six other key employees in the sales and purchasing departments of Diamond Comic gave one week's notice of their intent to resign from the company, including the Manager of Sales, Director of Ecommerce Sales, Business Development Manager, the second in command in the purchasing department, a purchasing manager, and an assistant manager in the merchandise team. The simultaneous resignation indicated that the resignations were coordinated."
There are also two declarations made under penalty of perjury, from Ad Populum CEO and owner Joel Weishanker and Diamond President Chuck Parker, who has been at Diamond for forty years. These two declarations, in part, include the statements below. It should be noted that we do not have access to a court filing that includes the employee exit interviews, which are still under seal.
Joel Weishanker: "I called Chuck Parker, the President of Diamond Comic on May 11, 2025 to inform him that Mike Schimmel, the head of sales at Diamond Comic was resigning on May 16, 2025, only one day after the APA had closed. Mr. Parker subsequently informed me on May 19, 2025 that Mr. Schimmel had accepted an employment offer with AENT. Mr. Parker subsequently also told me that, on May 27, six other Diamond Comic employees, three each in the sales and purchasing departments at Diamond Comic, gave notice of their intent to resign from the company at the end of the week, to join Mike Schimmel at AENT."
Chuck Parker: "Joel Weishanker, the CEO of Ad Populum and sole manager of Sparkle Pop called me on May 11, 2025 to let me know that Mike Schimmel, the head of sales at Diamond Comic, was resigning and Mr Schimmel did so on May 16, 2025, only one day after the APA with Sparkle Pop had closed. Mr. Schimmel subsequently informed me on May 18, 2025 that he had accepted an employment offer with AENT. I subsequently informed Mr. Weishanker of that fact on or about May 19, 2025. I later informed Mr. Weishanker that, on May 27, 2025, six other Diamond Comic employees, three each in the sales and purchasing departments at Diamond Comic, gave notice of their intent to resign from the company at the end of the week, to join Mike Schimmel at AENT."
The court documents included a copy of that e-mail, as forwarded to him by Fran Callahan who is, and remains, Executive Director of Human Resources at Diamond, where she has been for over thirty-eight years.
The legal case between all involved parties continues. You can use these Diamond, AENT, and Ad Populum tags to keep up with the latest on Bleeding Cool. 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
