Posted in: Comics, Current News | Tagged: diamond, FairSquare Graphics

Diamond Drops No Cost Returns Service, Demands Retailer Details Today

Diamond Comic Distributors drops their No Cost Returns Service for publishers, and demands retailer bank details, today

Fabrice Sapolsky of publisher FairSquare Graphics posted to social media yesterday, saying,

"The #DiamondComics farce continues. As of today, they're discontinuing their No Cost Returns service. Which is what we publishers used to get our books from their warehouse when we needed them for conventions or signings. So now, we have 7500 copies of our graphic novels stuck at the Olive Branch MS warehouse and we need it back ASAP. So, after not fulfilling their contractual obligation to pay us for the books they sell/sold, Diamond is going to hold our stock hostage? This is another painful development. If other publishers want to reach out, I'd be happy to talk to them about potential legal action. We're completely in the dark. No message. No email. No calls. No communication from the new Diamond management. This is bad. Really bad. PS: We've been looking for a new book distributor for months (Not for the Direct Market, for bookstores and libraries). But so far, we haven't been lucky. To be continued…"

I am sure plenty of publishers have been wanting their stock back from Diamond. Retailers, however, have been getting e-mails from Diamond. Well, one. Greg Gage owner of Black Cat Comics in Salt Lake City posted,

"So nice that the only communication we've had from the new owners of Diamond Comics is an email saying we'll get our account suspended (after 21 years) if we don't give them our bank account or credit card information by Friday. What a warm, beautiful welcome."

Bleeding Cool reported this story previously, that Diamond Comic Distributors hd ceased Cash-On-Delivery arrangements with comic book stores, quoting them as saying

"As part of a review of our ordering process, we are streamlining payment terms and eliminating COD terms. Going forward, you must select either AutoPay via ACH or by Credit Card. This change will be effective 6/16/25."

Well, this morning, just past midnight, retailers got a reminder e-mail from Sam Stevens at Diamond.

"Our previous email last weekend requested a response by Friday, June 13th at 5:00 pm ET with your choice of payment method due to the elimination of COD terms. Please provide that response today, on time, to avoid any disruption in service. I anticipate receiving many responses today and will not be able to answer any questions you include in your email as I tally the responses."

Do not ask questions! Just supply your bank details! Or else!

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

Enjoyed this? Please share on social media!

Stay up-to-date and support the site by following Bleeding Cool on Google News today!