Posted in: Comics, Comics Publishers, Current News, Dark Horse Comics, DC Comics, IDW, Image, Mad Cave Studios, Marvel Comics | Tagged: bankruptcy, diamond, Penguin Random House

Penguin Random House Pulls Marvel, Dark Horse, IDW Out Of Diamond

Penguin Random House pulls Marvel, Dark Horse, IDW, Valiant, Dstlry and TokyoPOP out of Diamond Comic Distributors for retailers

In recent years, DC Comics and Image Comics went exclusive with Lunar Distribution, and Marvel, Dark Horse and IDW went exclusive with Penguin Random House for distribution to the direct market of comic book stores. However, aside from DC, they all allowed former direct market monopoly Diamond Comic Distributors to sub-distribute from Lunar and PRH to comic book stores who still preferred to deal with Diamond. Indeed, I am told that around 15-30% of direct market retailer orders for those publishers were still through Diamond, even though they were cheaper elsewhere. Earlier this year, Image Comics pulled out entirely from Diamond as well as DC, as Diamond declared Chapter 11 bankruptcy. But now, as Ad Populum has bought Diamond, and is beginning to make layoffs as they merge their companies together, Penguin Random House has dropped the other shoe. In a letter sent to retailers, they state;

"Penguin Random House would like to thank Diamond for their partnership and for their contributions to the marketplace. Going forward, all Penguin Random House sales into the US Direct Market will be handled by our in-house sales team. We are announcing the following transition plan for US Direct Market retailers serviced by Diamond Comics:

• Diamond's last FOC for all Penguin Random House product to US retailers will be May 26th.
• The last on sale date for new product shipping through Diamond to US retailers will be June 25th.

"Retailers with questions about an existing Diamond order should reach out to Diamond directly. Existing accounts can continue to order directly from Penguin Random House. Retailers interested in opening a new account can contact us at ComicMarketUS@penguinrandomhouse.com. Best, – Your PRH Direct Market Sales Team"

So that's it. Retailers can no longer order Marvel, Dark Horse or IDW through Diamond Comic Distributors. Or TokyoPOP, Boom Studios or Dstlry, for that matter. It's Penguin Random House only. How this affects Diamond UK, being bought by Universal Distribution, I don't know, as they had a carve-out deal to distribute all the publishers, aside from Mad Cave and TwoMorrow, into the UK. But, it seems that the agreed bankruptcy purchase of Diamond has kicked everything off again…

It may be worth remembering that before Chapter 11 bankruptcy, Penguin Random House were in the hole to Diamond for nine million dollars…

You can use these Diamond, Ad Populum, Penguin Random House and bankruptcy tags to keep up with the latest on Bleeding Cool. 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 and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
• 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
• And we look at the future of Diamond Previews again

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