Posted in: Collectibles, Comics, Current News, Diamond Select Toys | Tagged: Ad Populum, diamond

Diamond Select Toys Shut Down As Part Of Ad Populum Purchase?

Diamond Select Toys reportedly shut down and staff laid off as part of Ad Populum purchase.

When I first had comic books published and solicited through Diamond Comic Distributors back in the mid-nineties, I dealt with Mark Herr. He was at Diamond Comics from 1985 until 2005, rising to Director of Purchasing, and then Director of Sales at Diamond International Galleries until 2009. These days, he works in grocery retail, but he still keeps an eye out and stays in touch with old colleagues. With Diamond being bought by Ad Populum as part of the Chapter 11 bankruptcy process, and a number of layoffs being reported, Mark Herr posted to social media about what he'd heard."So, yesterday, new owners took ownership of the company I spent many years helping build it into the giant it became.  And yesterday, the restructuring began. They aren't putting out press releases or anything of that nature as to who was let go.  So, it's industry websites, social media, and direct questions to those I can ask.  Now, as a reminder, while I worked there for 29 years, I have been gone for 16 years.  So, there are plenty of "big names" at the company that I didn't even know."

"I do know the subsidiary Diamond Select Toys was shut down yesterday and all staff let go.  At least three of them are guys I know very well, all having worked there for over twenty years. I have heard that Steve Leaf was among the people let go in Purchasing. Steve would be the last surviving Purchasing member that I brought into the department.  So, that's especially hard for me.  (Outside of him being a really nice and very knowledgeable guy.)"

"I have checked in with a number of people who weren't let go yesterday.  And to a T, every one of them said something to the effect of, "I am still here…for now."

Diamond Select Toys and Collectibles, was founded in 1999 by Diamond Comics Distributors to create collectables for adult collectors and has since licensed a variety of pop culture properties, distributed via Diamond. Bleeding Cool has previously reported on Chris Powell, Rich Johnson, Stuart Carter, Terry Helman, Steve Leaf, being laid off as the acquisition press release was sent out.

You can use these Diamond, Ad Populum and bankruptcy 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 breakfasts 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 and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
• 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.

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