Posted in: Recent Updates | Tagged: Alan Moore

Checker Withdraw From Diamond Over Irreconcilable Differences

A couple of weeks ago, Checker Publishing announced to comic book stores that it had chosen no longer to allow Diamond Comics Distributors and Diamond Book distributors to sell its comics and graphic novels.

Checker have specialised in reprinting classic works, from Milton Caniff's Steve Canyon to Alan Moore's Supreme, although their schedule has dropped off of late.

A few months ago, all their books were cancelled by Diamond, and Checker has now announced that that was the publisher's decision, and not sales-related. Publisher Mark Thompson writes;

Checker BPG has never solicited a product which did not generate orders well in excess of the stated minimums of Diamond policy and the cancelled orders represent over a quarter-of-a- million dollars in retail value sales. The cancellation was initiated by Checker BPG, and not by Diamond.

The canceled product represents the culmination of an arduous year in attempting to distribute product through Diamond's logistical services. It was determined in the Fall of 2009 that it would be in Checker's best financial interest not to supply Diamond Comic Distributors with any product due to the fact that there was no reasonable probability that Checker would be compensated for product shipped. Informal phone conversations with other suppliers showed a recurring theme but not necessarily to the extent of Checker's situation.

In the 16 year relationship with Diamond I have never personally experienced such a complete collapse in distribution capabilities. Like many in the industry we had hoped that their ship would be righted but we can no longer operate without functional distribution.

Checker have since moved a bumber of product lines to Diamond rivals such as Haven Distributors and Thing From Another World.

Mark Thompson then gave further details.

For nearly a year and a half Diamond was unable to receive shipments from Checker. Some shipments would be lost for 5 months, three months, or never found at all. This is crippling on newly printed projects where 90% of the print run is shipping to Diamond. You have to understand that this aspect alone would drive clients out the door in a normal situation of distribution relations.

This is further compounded by irregular reporting , lost items, and abysmal fulfilment rates. When questioned on these aspects there is virtually no response.

Additionally, It was communicated to me in a sales call which was repeated by Diamond amongst all the major suppliers that there was a substantial debt managment problem. We feel this is potentially damaging to the entire industry. That is; to the extent people owe Diamond , they will be unable to conduct a basic function for a publisher going forward, which is collect revenue on our behalf from the retail base.

Thompson also added as to why they stayed in business with Diamond for so long, saying;

We continued with several shipments in hopes that Diamond would either make amends, or find the lost shipments. This scenario was happening simulataneous to our ongoing arguments regarding shipments to Barnes and Noble which we thought would be settled to our satisfaction, but was swept under the rug when the Barnes and Noble 4 million dollar settlement check apparently did not arrive. When the losses hit newly printed material (ie larger shipments) which represented the bulk of the print run on new product the ramifications spread across several fronts. How do I publicize and market a book which is in print, yet lost for five months? Do I reprint? Do I announce the book is lost, good luck readers? Do I cancel Diamond's orders and solicit through another outlet? Diamond lost Steve Canyon 1955 for five months. During this time I informed them that I would not ship new projects unless paid up front or guaranteed payment , they declined either option.

Thompson also attested to another serious allegation. That the book chain Borders had not made a payment to Diamond Book distributors in three years.

I estimate that the sales through Diamond's book division to Borders to be 6-8 million a year. A substantially higher number than you mention. During the phone conversation that Diamond repeated with several publisher/suppliers they stated that Borders had not paid them in over three years. If my estimation is correct on Border's sales Diamond is into them for 15 to 20 million. So the Borders down the street from you essentially gets books for free. If you guys don't have a problem with that -thats fine by me. I am merely stating a laundry list of reasons for leaving Diamond, primarily due to the collapse in ability to act as a distribution entity for Checker.

Thompson also talks further;

When I retrieved my books the Diamond employee who was assigned to help me described a scenario last year when they were taking in as much as 80(count em) eighty truckloads of returns. I estimate that roughly 30 skids fit in a truck, with another estimated 55 cartons per skid. That begins to calculate to around 40 million in returns.

Lets go on. Diamond also described a dispute with Barnes and Noble over short shipments. This is one of the aspects I was specifically arguing with them regarding. Diamond stated that they were receiving a settlement check on the dispute of 4 million dollars and that my dispute with Diamond would be settled out of that 4 million dollar check(that I presume would be spread over a lot of publishers). The date I was given came and went and no further discussions on the matter happened despite inquiries.

I spoke to Diamond representatives who were unwilling to speak on the record, but who denied many of the allegations made against the company, especially the Borders-related issue. Diamond did issue this statement to Bleeding Cool;

We wish Checkers well and sorry we are not working together but after 30 years in business we would like to think our track record speaks for itself in terms or working with vendors and retailers. Some comments that are being made should be viewed with that in mind and we do not intend to discuss private matters in a public forum.

I did speak to a number of publishers who, while not happy to talk on the record, told me that they didn't recognise the kind of behaviour being described regarding Diamond, from the alleged continually delayed payments or issues regarding Borders and/or Barnes & Noble. The kind of subject that, if shared with Checker should also have been shared with other publishers.

Nevertheless, this is one hell of a way to burn a bridge.

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