Posted in: Ablaze Publishing, Black Mask Studios, Comics, Comics Publishers, Current News, Dark Horse Comics, Dynamite, Fantagraphics, Mad Cave Studios, Oni Press, Titan, Valiant, Vault | Tagged: ,

Diamond Bankruptcy Liquidation Hearing Continued Until September 30

The Diamond Comic Distributors Chapter 11 bankruptcy hearing on liquidation-related matters has now been continued until the 30th of September

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The Diamond Comic Distributors Chapter 11 bankruptcy hearing on liquidation-related matters that has been held these past three days did not reach any decisions beyond the ones that were granted two days ago, the Diamond UK sale to itself, and the Stay on the Diamond Debtors plans to liquidate stock. At issue before the court today, again, was the Ad Hoc Committee's Motion Seeking Entry of an Order Requiring the Debtors to Assume or Reject Executory Contracts. As their filing states, this is viewed by the publishers as a key step in their efforts to obtain the return of the consignment inventory. No decision was made by the court today, and this matter has now been continued, and will be heard again alongside the motion filed by another group of publishers known as the Consignment Group, a "motion seeking entry of an order requiring the debtors to assume or reject executory contracts."

The Consignment Group have filed very similar paperwork, with some sections being the same as Ad Hoc's filings. And reminds us that "First and foremost, it is apparent that Sparkle Pop is selling the Stock post-May 15, 2025, without any authority to do so. Robert Gorin, the Debtors' Chief Restructuring Officer, testified on August 15, 2025 in a deposition that Sparkle Pop has sold more than $2 million of the consignment goods. This is not permissible, particularly where there has been no effective assumption or assignment of the Consignors' agreements." And so Judge Rice is going to consider them together.

But any decision is going to be some time coming, as the next hearing has been scheduled for the 30th of September to hear both motions. Of course, between now and then, anything could happen. The Ad Hoc Committee was formed from publishers Ablaze, American Mythology Productions, Avatar, Battle Quest, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon and Zenescope. While the Consignment Group is made up of Dark Horse, Dynamite, Aspen, Black Mask, Dstlry, Heavy Metal, Magnetic, Massive, Oni, Panini UK, Alien, Graphic Mundi, Titan and Vault.

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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 The Flying Friar, Holed Up, The Avengefuls, Doctor Who: Room With A Deja Vu, The Many Murders Of Miss Cranbourne, Chase Variant. Lives in South-West London, works from The Union Club on Greek Street, shops at Gosh, Piranha and FP. Father of two daughters. Political cartoonist.
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