Posted in: Comics, Current News | Tagged: diamond, Diamond UK

Diamond UK States That They Are "A Profitable And Stable Business"

Diamond UK states that It Is "a profitable and stable business" after Diamond Comic Distributors declares bankruptcy

Published Tue, 14 Jan 2025 10:57:07 -0600

Article Summary

Diamond UK assures stability amid Diamond Comic Distributors' Chapter 11 Bankruptcy announcement.
Universal Distribution plans to acquire Diamond UK, ensuring continued operations without disruption.
Bleeding Cool reports $39M stalking horse bid for Alliance Game Distributors by Universal affiliate.
Diamond Comic Distributors secures $41M DIP financing for post-bankruptcy operations and commitments.

Earlier today, Bleeding Cool broke the news that Diamond Comic Distributors had declared bankruptcy. We also stated that an agreement was in place for the purchase of sister companies Diamond UK and Alliance Games Distribution, also owned by parent company Steve Geppi Enterprises, by Canadian company Universal Distribution. Diamond UK was originally Titan Distribution, part of the Titan Comics and Forbidden Planet family of companies. After its purchase, it remained a separate vendor of Diamond Comic Distributors within the family structure of businesses, created by Steve Geppi. Well, British and Irish stores have just received the following letter from Mike Holman, Diamond UK General Manager"

"Dear Diamond UK Retailer, Earlier today, it was announced that USA-based, Diamond Comic Distributors, Inc, made an important and necessary move to strengthen its financial position and preserve the strongest parts of its business, and filed for Chapter 11 bankruptcy. What does this mean for you? As a wholly owned subsidiary of Diamond, we want to reassure you that Diamond UK is not in bankruptcy and will continue to operate business as usual throughout this process. Our top priority is to continue fulfilling orders and serving our customers without disruption.
Diamond UK is a profitable and stable business and will likely be sold as part of this process. In fact, Diamond has already received a signed Letter of Intent from Universal Distribution to purchase Diamond UK. We are confident that under new management, we will be well-positioned for future growth. We will be as transparent as possible throughout this process and will keep you informed of any significant developments. If you have any questions or concerns, please don't hesitate to reach out to your rep. Thank you for your continued support."

The official language is that Diamond Comic Distributors has "filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland to facilitate the restructuring of its business. As part of the restructuring process, Diamond has received a $39 million stalking horse bid from an affiliate of Universal Distribution for Alliance Game Distributors. The Company has received commitments for up to $41 million in debtor-in-possession (DIP) financing from JP Morgan Chase that will be used to fund post-petition operating expenses and ensure adequate working capital to meet its obligations to associates and suppliers." If anyone can parse that, I would be very grateful…

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