Posted in: Comics, Current News | Tagged: diamond, fairsquare
FairSquare Graphics Calls Diamond "Thieves & Bandits", Brings Receipts
FairSquare Graphics' Fabrice Sapolsky calls Diamond Comic Distributors "Thieves and Bandits" and brings receipts
Fabrice Sapolsky, co-creator of Spider-Man Noir, and co-founder New York-based graphic novel publisher FairSquare Graphics has been reading Bleeding Cool's reports on the activities of Diamond Comic Distributors and their new owners, Ad Populum, during the period of Chapter 11 bankruptcy. Posting on social media, he is not mincing words. He writes;
- FairSquare Graphics logo
"Everytime I read a new report on the Diamond situation, I feel a burst of anger and stress at the same time. Yesterday, Bleeding Cool published a post stating that Fantagraphics was considering "that Diamond Comic Distributors is holding their comic books hostage and is demanding payment". Isn't that what a bunch of small presses, including myself, have been saying for weeks? It sure is.
"Ths morning, I received another one of those statements Diamond sends or used to send every week. This is page four. The recap page. You don't really need to see the rest. I highlighted the interesting sections. You can see that the week between 6/16 and 6/22, we sold 30 copies of our books. It's not a lot, but it doesn't really matter because you have to consider that money from these sales will not be given back to us anyway (which is fraud, we still have a contract) as it has been the case for the past 7 weeks. So, we're not promoting books on those channels as we used to.
- FairSquare paperwork from Diamond Comics
"Now, what's even crazier, is that Diamond keeps accepting returns for our books (which obviously is also a problem) while not paying us and, as Fantagraphics said, "holding our inventory hostage." On June 18, I formally asked Diamond to STOP selling our books. The warehouse did not get the memo (apparently). Another issue (=fraud). As you see on the statement, our books are on "consigment" basis, which means they are at the Diamond facility but remain our full and sole property. Our future is in jeopardy because some people we don't know are still figuring things out about who owns what at Diamond. This is insane and another case for fraud.
"As we're about to leave to attend ALA, the American Library Association Book festival, a place where most librarians and retailers come to discover what publishers have been up to, I have every intention to talk about what we're experiencing to anyone who'll visit our table (booth #2450 in Artist Alley). People need to know. As I wrote in a previous post, it's a case of attack on Freedom of publishing we're facing. It's obvious ground for multiple lawsuits. And we'll get there.
"But above everything, I'm writing and showing this because our peers and readers need to know the truth. They need transparency. And if you like what FairSquare Graphics and many other publishers tied in this web of deceit are publishing, please buy directly from us. Please support our crowdfunding campaigns. Please help us outlive this cruel joke while we're looking for a new distribution partner for the bookstores and library channels. Every sign of support counts. Thank you.
And he also adds,
"At this point, I'm going to call Diamond, thieves and bandits. We have NOT authorized this. And if this happens, I am disgusted. How can we trust another big company with our most valued property, our books. The fact that none of the vendors had any official note but have to rely on journalists proves the level of contempt Diamond's operators have for their clients (us)."
FairSquare Graphics is a small, family, immigrant and minority owned company created in June 2019 by Fabrice Sapolsky (co-creator of Spider-Man Noir), Kristal Adams Sapolsky (Netflix, Hulu) and Ethan Sapolsky to develop, publish and distribute original comic books and graphic novels. With a mission statement to promote and give more exposure to immigrants, minorities and under-represented creators of the world. You can use these Diamond tabs to keep up with the latest on Bleeding Cool and find out how we got here. 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
- Boom Studios makes layoffs.
- Zenescope pulls out of Diamond.
- AENT Says Diamond Claim They Poached Staff "Fails As A Matter Of Law"
- It's Claimed New Diamond Owner Said He's "Playing Chicken With Idiots"
- Mike Schimmel Talks, Under Oath, About The Diamond Comics Firings
- Dynamite jumps to Lunar Distribution
- Diamond takes Previews digital only
- Universal Distribution to distribute in the USA as well as Canada, starting with DC Comics
- Conflicting Statements Over Diamond, AENT And Ad Populum Lawsuits
- This Week, There Are Only Five Comics On Diamond's FOC
- Robert Gorin, Chief Restructuring Officer Of Diamond Comics, And Geek
- Titan Has Not Received Payments From Diamond Comics, Stops Supplying
- Fantagraphics Says That Diamond Is Holding Their Comics Hostage
- Kathy Govier, Chief Marketing & Communications Officer, Out At Diamond
- Confirmed, AENT Tried To Buy Diamond In October To Avoid Bankruptcy
- FairSquare Graphics Calls Diamond "Thieves & Bandits", Brings Receipts
