Posted in: Comics, Current News | Tagged: Ad Populum, diamond

Problems With Ad Populum's First Payments To Comics Publishers

The first payments due to comic book stores from Diamond Comics purchaser Ad Populum seem not to have been made. What's going on?

Bleeding Cool has heard from a number of comic publishers, many of whom are seriously out of pocket over the Diamond Comic Distributors Chapter 11 bankruptcy, that they are also waiting on the now-overdue first payments from Ad Populum. Under the name Sparkle Pop, the IP owner and merch distributor Ad Populum bought Diamond Comic Distributors at auction last month, part of Diamond's bankruptcy dealings. This included Diamond Books, CGA, Diamond Select Toys and other bodies, with their joint bidder, Universal Distributors from Canada. Universal, having bought Alliance Gaming, is now set to purchase Diamond UK separately.

Many people I spoke to, who had had problems with Diamond, were willing to treat Ad Populum's acquisition as a fresh start. The ball was in their court. Well, now, to stretch the metaphor further, it has hit the net on the first serve.

I am told that when the due date came to pay publishers, the vendors were told that Ad Populum had told Diamond that the invoices would not be paid, and that Diamond had no information about when or if the invoice would be paid. That Diamond staffers, from top to bottom in the company, have repeatedly said that these are Ad Populum decisions, to approve post-15th of May invoices, and that they have no information on what will happen. If Diamond Exec VP and COO Chuck Parker can't approve sending money out, no one at Diamond can. And there seems to be little flow of information beyond that.

It may, however, take longer to sort out. Ad Populum just acquired a bankrupt company in Diamond Comic Distributors, itself the subject of many complaints over recent years, and they are in the process of getting things settled. I understand that Ad Populum believes that they have made payments to the bankruptcy estate to pay publishers, and it is up to that estate to distribute those payments. But what happens to payments after the sale?

Vendors who have not been paid for weeks and might be owed an additional tens or hundreds of thousands of dollars, even beyond the initial bankruptcy amount, might not be in a position to wait much longer. The advice from Ad Populum for comic book publishers and other vendors is to reach out to assigned support teams and Diamond Comics representatives, if they are still there. This would seem to be a cold comfort, given that Diamond personnel are blaming Ad Populum regarding this issue. Beyond that, there is a general contact address for Ad Populum, which is regularly checked throughout the day. And Ad Populum states that they are committed to getting back to those who reach out with problems, and figure out what is going on. The general contact form can be found here. Let Bleeding Cool know how you get on.

You can use these Diamond, Ad Populum, Penguin Random House, Massive, Lunar 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
• 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 five 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.

Enjoyed this? Please share on social media!

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