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

Diamond Debtors vs Sparkle Pop Over "Brazen And Unauthorized Actions"

Diamond Debtors Vs Ad Populum/Sparkle Pop over selling off the consigned comics as "brazen and unauthorized actions"

Published Wed, 27 Aug 2025 06:59:04 -0500

Diamond Comic Distributors declared Chapter 11 bankruptcy at the beginning of the year. Ad Populum/Sparkle Pop bought Diamond's comic book business, while Diamond Comic Distributors Inc, the debtor, is a separate entity in this bankruptcy action. The debtor has been doing their best to sell those consigned comics, worth many millions, without paying anything to the publishers who own them. But because they are in the warehouse that Ad Populum/Sparkle Pop leases, they are alleging that Sparkle Pop, as the new Diamond, has been selling them and keeping the money. So the Diamond Debtors have put in new court filings to try to hurry up a decision about all this. In a bid to protect what it sees as its assets, Diamond, the debtors have filed a motion accusing Sparkle Pop of selling consigned inventory that was explicitly excluded from a court-approved asset sale. The motion seeks to enforce the stay, recover proceeds from the sales, and impose damages. The debtors also requested an expedited hearing to address the issue promptly.

"Sparkle Pop's brazen and unauthorized actions must be stopped"

The filings state, "The Debtors learned in early or mid-June 2025 that Sparkle Pop was selling consigned inventory. The Debtors promptly – and repeatedly – demanded that Sparkle Pop stop selling consigned inventory, and directed Sparkle Pop to remit the sale proceeds to the Debtors. Although, based upon conversations with representatives of Sparkle Pop, the Debtors understood that Sparkle Pop had stopped selling consigned inventory, such sales continued. Despite the Debtors' multiple demands, Sparkle Pop has continued to sell consigned inventory and has continued to retain all sale proceeds."

And that "The Debtors submit that shortening the objection deadline and granting an expedited hearing is necessary and in the best interests of the Debtors' estates, their creditors, and all parties in interest. Despite numerous requests, Sparkle Pop has not indicated any willingness to cease selling consigned inventory and has not remitted the proceeds from the sales of consigned inventory to the Debtors. Moreover, upon information and belief, Sparkle Pop continues to sell consigned inventory. Sparkle Pop's actions damage the Debtors' estates on a daily basis."

Demanding that the court notice "Sparkle Pop has repeatedly sold consigned inventory and – worse yet – has refused to remit the proceeds from such sales to the Debtors. Sparkle Pop has done this despite multiple demands from the Debtors that it stop all consigned inventory sales and turn over all sale proceeds to the Debtors. Sparkle Pop's brazen actions are clear violations of both the automatic stay and the Sparkle Pop asset purchase agreement that was approved by the Court."

And calling for "Sparkle Pop's brazen and unauthorized actions must be stopped. The Debtors accordingly file this motion to enforce the automatic stay and obtain redress for Sparkle Pop's actions, including actual damages, reimbursement of legal fees, and punitive damages. In the alternative, the Debtors also seek an order of the Court enforcing the Court's prior sale order"

They claim that Sparkle Pop sold $1,353,364 of consigned inventory from the date of the purchase to the 8th of July, and a further $31,258.60 in the nine days afterwards, and that "Sparkle Pop continues to list consigned inventory on its website as being for sale."

Now, to be clear, Ad Populum/Sparkle Pop has not been paying any revenue from any sales of consigned comic books to the publishers. And the Diamond Debtors don't want them to do that either; they want the money from any sale to be paid to them to pay off the banks. Of course, they have already settled with Image Comics over the matter, and the Ad Hoc Committee's successful motion to make the Diamond Debtors deal with each publisher individually when it comes to selling, liquidating, or returning the consignment stock has made that a lot harder for the Diamond Debtors.