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Courts Order Sparkle Pop To Cease Sales Of Diamond's Consigned Comics

Sparkle Pop/Ad Populum has been ordered by the bankruptcy courts to cease selling the Diamond Comics consigned stock

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Last week, the court in the ongoing Diamond Comic Distributors, Inc. Chapter 11 bankruptcy case issued an order to Sparkle Pop/Ad Populum, the buyers of the Diamond Comics business division. They require that Ad Populum immediately halt all sales, marketing, and advertising of consigned comic books and merchandise, owned by the publishers, but at the heart of a bankruptcy custody battle.

Of course, at the beginning of the month, when making their case, Sparkle Pop/Ad Populum stated that they had done all this, saying "Sparkle Pop had removed all Consigned Inventory from the Website and Sparkle Pop has ceased all sales of Consigned Inventory."

The new order stems from a motion filed by the Diamond Debtors, who allege that Sparkle Pop/Ad Populum was improperly selling inventory held on consignment, violating bankruptcy protections. Objections to the motion were filed by Sparkle Pop/Ad Populum, but also from comic book publishers represented by the Ad Hoc Committee, as well as the Consignment Group, but for very different reasons, as the Diamond debtors intend to sell the consigned goods themselves and keep the proceeds for the bankruptcy. The court's order resolves the motion in part, focusing on immediate actions to protect the consigned inventory while preserving other claims for future hearings.

It stated that Sparkle Pop/Ad Populum and its Diamond Comics business division must cease all sales of the consigned inventory and remove it from its websites, order forms, marketing materials, and other sales platforms. Within three business days, Sparkle Pop is required to file a written certification with the court saying they've done so, and provide a detailed accounting of all sales of consigned inventory, including vendor names, product details, gross proceeds, quantities sold, dates, and manufacturer's retail prices, and must deposit the proceeds from these sales into the court's registry, to be held in escrow. And any future proceeds must be similarly reported and deposited within three business days of receipt

Well, within those three days, Joel Weinshanker, CEO of Ad Populum/Sparkle Pop filed with the courts stating "I hereby certify that Sparkle Pop has removed all Consigned Inventory (as defined in the Order) from its (and/or any affiliate of Sparkle Pop's) website, order forms, marketing materials and all other forms of product marketing and sales materials as of the date of the Consent Order" and that "Sparkle Pop has ceased all sales of Consigned Inventory." As for the rest, we wait to see. The next court hearing is currently delayed until the 22nd of October.

 

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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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