Posted in: Comics, Current News | Tagged: , ,

Sparkle Pop Files Motion to Quash Trial Subpoena in Diamond Bankruptcy

Sparkle Pop moves to quash a subpoena to testify in Diamond Comic Distributors' chapter 11 bankruptcy case in the ongoing hearing on liquidation matters.

Published
by
|
Comments

Amidst the ongoing Chapter 11 bankruptcy proceedings of Diamond Comic Distributors, Inc., the purchaser of Diamond at auction, Ad Populum/Sparkle Pop has filed a motion to quash a subpoena filed last week demanding its testimony at a key hearing. The motion, filed on Sunday, the 17th of August, ahead of yesterday's hearing, continuing today, claims the Ad Hoc Committee representing publishers Ablaze, American Mythology Productions, Avatar Press, Battle Quest Comics, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon and Zenescope, has issued an insufficient and untimely demand for trial appearance and testimony just days before a scheduled evidentiary session.

The subpoena, served via email on the 15th of August, would require a corporate designee from Sparkle Pop, naming manager Joel Weinshanker, to appear and testify at the current hearing. The hearing, taking place now, concerns the Diamond Debtors' motion to sell consigned inventory which was not included in Ad Populum's earlier purchase of Diamond's assets. Sparkle Pop argues the demand violates federal rules by providing insufficient notice, failing to properly identify an individual or serve that individual in the correct way, and exceeding geographic limits, as Weinshanker lives in Florida.

Court records show that on 1st of May, the bankruptcy court approved the sale of substantially all of Diamond's assets to Ad Populum/Sparkle Pop and Universal Distribution, the back-up bidders in the auction process after Alliance Entertainment pulled out, launching its own lawsuit. The asset purchase agreement closed on the 15th of May 15, 2025, but explicitly excluded consigned inventory, goods held by Diamond on behalf of various publishers and creators. This inventory is now the subject of a separate motion filed by the Debtors, seeking approval to liquidate the stock without having to pay anyone else. But also, they have alleged that Ad Populum has been selling that stock anyway.

The Ad Hoc Committee representing thirteen publishers with consignment stock at Diamond has objected to the consigned inventory sale, and won a partial victory on the first day of hearing. The group, which claims ownership interests in the goods, initially sought documents and deposition testimony from Sparkle Pop regarding the handling of consigned items. According to the filed document, after negotiations, the committee withdrew its deposition request in exchange for document production by the 15th of August, but then filed the trial subpoena on that day.

Now Ad Populum's First Payments To Comics Publishers Are Delayed
Ad Populum and Diamond Comics logos

You can use these Diamond tabs to keep up with the latest on Bleeding Cool. Here's a timeline if you want to catch up…

Enjoyed this? Please share on social media!

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

Rich JohnstonAbout Rich Johnston

Founder of Bleeding Cool. The longest-serving digital news reporter in the world, since 1992. Author of The Flying Friar, Holed Up, The Avengefuls, Doctor Who: Room With A Deja Vu, The Many Murders Of Miss Cranbourne, Chase Variant. Lives in South-West London, works from The Union Club on Greek Street, shops at Gosh, Piranha and FP. Father of two daughters. Political cartoonist.
twitterfacebookinstagramwebsite
Comments will load 20 seconds after page. Click here to load them now.