Posted in: Comics, Current News | Tagged: bankruptcy, comic shop, frankies comics, ivan tao, north carolina

Frankie's Comics, Specialising In Variant Covers, Declares Bankruptcy

Frankie's Comics, LLC, a comic book retailer recently specializing in exclusive variant covers, has filed for Chapter 11 bankruptcy.

Frankie's Comics was a comic book store in Apex, North Carolina, that closed last year as it pivoted to become an online store, though they promised they would be reopening a brick-and-mortar store at the end of March. Also known as Hoknes USA, Frankie's Comics specialises in exclusive retailer variant comics, such as the exclusive variant covers below for Marvel Comics' Mary Jane & Black Cat #1 by Ivan Tao from 616 Comics. On the 14th of December last year, Frankie's Comics, LLC filed for Chapter 11 bankruptcy, an American form of bankruptcy that means the company can continue operating while it tried to reorganise itself into a viable company that can pay off its debts.

Owner Kevin Fields posted to Frankie's Comics' social media, saying, "Our sales over the last 18 months have not been good. Our revenue was lower than our required debt payments. After reviewing all the options we elected to enter chapter 11 bankruptcy. Obviously, this decision was not made lightly. Just like General Motors, Hertz, Chrysler and Marvel Entertainment, we are under the protection of the bankruptcy court. Chapter 11 bankruptcy allows time to restructure our debt and stay in business. We are not liquidating! Your orders are safe! Our customer service team is still responding and orders will continued to be filled. Please comment below if you have questions. Please remember to be nice…."

The twenty creditors with the largest unsecured claims are as follows:

1. Clearco, Wilmington, DE  $58,177
2. Diamond Comic Distributors, Olive Branch, MS $6000
3. EBF Holdings/Everest Business Funding New York, $58,400
4. First Citizens Ban. Charlotte, NC $40,000
5. Forward Financing, Boston, MA $91,875
6. Fox Business New York, NY $53,280
7. GTS Distribution, Everett, WA $2,100
8. Internal Revenue Service, Philadelphia, PA $15,000
9. Ivan Tao $6,000
10. Kapitus, New York, NY $55,000
11. Lawrence Crossing, Raleigh, NC $3,600
12. Lunar Distribution. New Haven, IN $4,000
13. NC Dept. of Revenue, Raleigh, NC $4,500
14. PayPal, Omaha, NE $46,690.60
15. PayPal, Omaha, NE $38,798.24
16. PayPal Working Capital, Omaha, $48,764.57
17. Penguin Random House, New York, NY $200,000
18. Shopify Capital, San Francisco, CA  $37,057
19. Simply Funding, New York, NY $140,000
20. Titan Publishing, Aurora, IL $32,980

That totals around a million dollars of unsecured debt from just the top twenty creditors, and includes creator Ivan Tao for $6000, distributors like Diamond, GTS, Lunar totalling over $12,000, which is dwarfed by $200,000 being owed to Penguin Random House, presumably for Marvel exclusive variant covers. Much of the debt seems to be from banks and money lenders, including over $130,000 to PayPal, $140,000 to Simply Funding and over $90,000 to Forward Financing. For those not named on this list, at least they will be owed less than $2000 or less each.

To get an exclusive retailer cover from Marvel or DC, shops, shows, or creators have to order a minimum of 3000 copies, with subsequent variants of the variant at 1500 and 1000. Other publishers provide fewer minimum orders. Retailers then pay the full wholesale price, plus the artist's costs – unless they are representing the artist themselves. The exclusive covered comic can then be sold for premium prices or used for promotional purposes for the store. They have also been very handy for publishers looking to bump the numbers on a title, adding tens of thousands of orders to a comic book just by making this option available.

Enjoyed this? Please share on social media!

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