Posted in: Comics, Current News | Tagged: diamond, Magma Comix

Graphitti Designs & Magma Comix File Legal Paperwork Against Diamond

Graphitti Designs and Magma Comix file legal paperwork against the Diamond Comics Distributors debtors

Published Fri, 11 Jul 2025 16:06:04 -0500

Article Summary

Graphitti Designs and Magma Comix file legal objections to Diamond Comic Distributors’ bankruptcy actions
Publishers claim their consignment stock at Diamond remains their property and object to unauthorized liquidation
New filings include contracts and financial details revealing deeper issues between Diamond and comic publishers
Diamond’s bankruptcy timeline, court battles, and distribution woes are detailed in a comprehensive event rundown

I previously reported that TwoMorrows Publishing had filed a legal objection to the plans of the debtors of the Diamond Comic Distributors Chapter 11 bankruptcy to liquidate the consignment stock owned by hundreds of publishers, to raise money to pay off Diamond's debt to the banks. And that this was to be decided by the courts on Monday of San Diego Comic-Con week, when affected publishers would be extra busy elsewhere.

They have now been joined in that endeavour by Graphitti Designs and Magma Comix. Robert W. Chapman, president & publisher of Graphitti Designs, Inc., has written, "I am writing to lodge my formal objection to the motion referenced above. Our inventory was sent to Debtors on a consignment basis per the terms of our Supply Agreement, and is our property, not Debtor's. My company has an ongoing financial interest in selling all merchandise that is still in Debtor's warehouse. Likewise, I object to Debtor's continuing to sell these items without remitting payment to us. Debtor's efforts to circumvent paying us for our property will not only jeopardize my company's immediate future financially, but their flooding the market with our products acquired at liquidated prices will hurt our longterm ability to sell those same products through other distribution channels."

While Denton Tipton of Magma Comix filed a full opposition motion that included exhibits such as their full contract with Diamond, and the details of discounts, and shipping – quite the revelation. And in which he says "I oppose the motion on file with the Court for the following reasons and based upon the facts, law, and legal analysis below: Molten Core Media LLC has a fully executed contract with Debtors granting them the right to hold our products on consignment, but the inventory remains our property, the disbursement of which is at our discretion, not Debtors. For the reasons stated above, the Court should deny the pending motion." And specifically from that filing;

"(a) All Products are to be held by Buyer on consignment, and remain the property of Seller until sold by Seller through Buyer. Seller shall retain title to Products while they are stored in Buyer's distribution center, which title will pass to Customers in accordance with Buyer's Terms of Sale. Buyer will cooperate with Seller in the execution of any financing statements or continuations or amendments to financing statements Seller reasonably deems necessary to provide adequate notice of its rights as consignor hereunder, naming Buyer as consignee or debtor, and identifying the Products as consigned goods, and further authorizes Seller to file such financing statements in all filing offices Seller reasonably deems appropriate, provided that Seller provides Buyer with reasonable advance notice and copies of all such filings."

That's three. Any more?