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

New Diamond Owner Says He's "Playing Chicken With Idiots" Claims AENT

AEN claims the new Diamond Comics owner said that he was "playing chicken with idiots" when talking to comic book publishers

Bleeding Cool has already reported on Alliance Entertainment (AENT)'s legally filed response to Diamond Comic Distributors's new owner, Ad Populum/Sparkle Pop. It concerns their lawsuit that claims AENT broke NDA agreements with Diamond as part of the Chapter 11 bankruptcy auction, as well as subsequently breaking agreements by poaching Diamond staff. But there's more. #

As part of the filing, AENT claims that "Vendors Fled as Sparkle Pop Refused to Honor Its Payment Obligations" referring to comic book publishers, saying "Immediately upon the Court's approval of the sale, Sparkle Pop sought to implement severe cost cuts without consideration of the impact the cuts would have on the business or employee morale. One such cost cutting measure was Sparkle Pop's refusal to pay vendors unless those vendors agreed to substantial discounts and extended payment terms. Joel Weinshanker, manager of Sparkle Pop, referred to this as "playing chicken with idiots" in referring to its vendors. As a result, DCD's reputation and sales plummeted as vendors fled and sought alternative partners. As summarised in an exit interview of a former employee, "much of the industry is rejecting Diamond, and too many businesses have made it clear they do not want to continue business with Diamond. Instead, they are moving to competitors. . . . His impression was DC and Marvel leaving made it look easy, so others followed."

Indeed, Bleeding Cool has repeatedly reported on how many comic book publishers pulled out of Diamond Comic Distributors as soon as Ad Populum sealed the deal and started laying off staff, and the impact this had on comic book stores. And as part of these legally filed papers, it seems that the place Diamond Chapter 11 bankruptcy lawyers go to learn about the case they are working on is Bleeding Cool. AENT cited four media reports on the situation in their legal response regarding Ad Populum and Diamond, and, typo aside, I wrote all of them.

"Plaintiff's self-inflicted wounds are widely reported in industry news. See e.g., Rich Johnson As Ad Populum Buys Diamond, Layoffs Hits in Sales, Services And Support, updated May 22, 2025, available at https://bleedingcool.com/comics/ad-populum-buys-diamond-layoffs-sales-services-support/; Rich Johnson, Diamond Select Toys Shut Down As Part Of Ad Populum Purchase?, updated May 22, 2025, available at https://bleedingcool.com/comics/diamond-select-toys-shut-down-as-part-of-ad-populum-purchase/; Rich Johnson, Diamond Comics Begins To Address Retailer Concerns About ComicSuite, May 20, 2025, available at https://bleedingcool.com/comics/diamond-comics-begins-to-address-retailer-concerns-about-comicsuite/; Rich Johnson, Diamond Book Distributors Confirms Those Laid Off And Those Not, May 17, 205, available at https://bleedingcool.com/comics/diamond-book-distributors-confirms-those-laid-off-and-those-not/"

More, much more to come. But 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"

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