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TwoMorrows Legally Objects To Diamond Bankruptcy Liquidation Of Stock

TwoMorrows legally objects to the planned Diamond Comic Distributors, the debtors, liquidation of publishers' consignment inventory as part of bankruptcy proceedings.


John Morrow, publisher of TwoMorrows Publishing, has 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. Stating that it is an "Objection to Debtors' entry of an order approving (i) procedures for sale or other disposition of consigned inventory, (ii) approving sales or other disposition of consigned inventory free and clear of liens, claims, interests, or encumbrances, and (iii) granting related relief", John Morrow states (emphasis mine) that;

"I am writing to lodge my formal objection to this motion. 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, unsold products that have been returned by booksellers to Debtor's inventory remain our consigned property until payment to us has been made, and I object to Debtors continuing to sell those 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 at liquidated prices will hurt our long-term ability to sell those same products from our own warehouse's inventory at normal prices. It will also undercut sales of those products at our new distributor, Lunar Distribution (where we were forced to shift our business after Debtor's bankruptcy filing)."

"Additionally, I object to the hearing being held on July 21, 2025, and would request that it be delayed until after Comic-Con International: San Diego (the comics industry's leading trade show, where I and many other publishers will be in attendance). Comic-Con will be held from July 23-27, and I will be traveling July 21-30 in conjunction with it, so would respectfully request the hearing be rescheduled for August 1 or later."

TwoMorrows Publishing was founded in 1994 by John Morrow and Pam Morrow out of their small advertising agency in Raleigh, North Carolina, to publish magazines about comic books. Titles include Alter Ego, Back Issue!, BrickJournal,  Comic Book Creator, Draw!, Jack Kirby Collector and RetroFan. They were heavily impacted by the Diamond Comic Distributors Chapter 11 bankruptcy and pulled their titles even from third party distribution by Diamond or Diamond UK. Will they be joined by other similarly affected publishers asking the same? I very well think they might.

 

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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.
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