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Dynamite Entertainment pulls their comics out from Diamond Comic Distributors... the ones they are allowed to, anyway
Posted in: Comics, Comics Publishers, Current News, Fantagraphics | Tagged: diamond, lunar
Fantagraphics Says That Diamond Is Holding Their Comics Hostage
Fantagraphics says that Diamond Comic Distributors is holding their comic books hostage and is demanding payment
Fantagraphics has issued the following note to comic book retailers, headlined "A NOTE TO RETAILERS ORDERING FANTAGRAPHICS BOOKS THRU DIAMOND". And just like Titan, and Oni and many others now, they state this is because Diamond has stopped paying them. Again.
"Effective immediately, Fantagraphics will no longer be distributed through Diamond Comics Distributors. When Diamond declared bankruptcy in January, Fantagraphics and Diamond worked together in good faith to maintain market stability and avoid any further disruption than was necessary. While all invoices prior to the bankruptcy filing were immediately frozen (and remain unpaid) under Chapter 11 proceedings, Diamond continued to act responsibly and reassured us that business would continue as usual and invoices would be paid on time. Which they were, up until May 16, the day that AdPopulum took over. Since then, the company has gone silent, with no payments for any books sold under the new ownership. Repeated attempts to communicate with Diamond and discuss a payment schedule have been ignored. At the end of May, we suspended shipping new releases to Diamond until they caught up on their payments. This has not happened. Last week, in response to a routine request to transfer stock, AdPopulum replied: Please be advised this order will not be fulfilled as our legal team has instructed us to halt all product transfers & NCR requestsl [sic] at this time. We apologize for the inconvenience. Thanks, The NCR Team"
NCR stands for No Cost Returns, the service that previously enabled comic book publishers to request their stock being held at Diamond Comic Distributors for free. And which Bleeding Cool had reported had been withdrawn. Bleeding Cool has also been made aware of an email that Publisher Eric Reynolds at Fantagraphics received from Liesa Yopp from Diamond Comic Distributors, who has been there for twenty-six years and, frankly, must be going through hell now. Her email to Fantagraphics says in part that "Unfortunately, the only way I can release your product right now would be to have someone with a retailer account place the order." Basically, they are saying that as a comic book publisher, you can get your stock back if you pay what a shop would pay. And get a shop to buy it. Although at least Diamond acknowledges that the stock is Fantagraphics's product and not theirs. The Fantagraphics statement continues,
"We routinely need to restock our Seattle warehouse that fulfills our ecommerce business. Diamond does not own any Fantagraphics inventory — that inventory is warehoused by Diamond on consignment and its disposition is at our discretion, not Diamond/AdPopulum's. Although we have not received a ransom note, AdPopulum is now effectively holding hostage inventory that they do not own, while apparently continuing to sell that inventory and not paying us for those sales. (We have received weekly sales reports for books they do not pay us for!) Please do not order Fantagraphics books and comics through Diamond, even for in stock inventory, because there is no indication that AdPopulum intends to pay Fantagraphics — and thereby its authors — for those sales. We encourage all retailers who previously ordered books through Diamond to shift their orders to one of our other distribution partners, including Lunar, W.W. Norton and Ingram books in the U.S., and Turnaround in the UK. Anyone with any questions about how to best obtain our books is encouraged to email Colin Blanchette at colin@fantagraphics.com."
Following is a list of recently FOC'd books that Diamond will not be able to fulfill, though Fantagraphics stated that they have overshipped Lunar on all of these to accommodate any comic book stores who now wish to get them through Lunar:
- HATE REVISITED: https://www.fantagraphics.com/
products/hate-revisited - BRAIN DAMAGE: https://www.fantagraphics.com/
products/brain-damage - SOCIETY IS NIX: https://www.fantagraphics.com/
…/society-is-nix-gleeful… - RAGING CLOUDS: https://www.fantagraphics.com/
products/raging-clouds - PEANUTS GAME DAY: https://www.fantagraphics.com/
…/peanuts-game-day-box-set - THE WOMAN WITH FIFTY FACES: https://www.fantagraphics.com/
…/the-woman-with-fifty-faces
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
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