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

Universal Distribution Hiring Diamond Staff, Will Enter USA Market?

Gossip: Universal Distribution aere to start distributing comic books in the USA as well as in Canada and the UK?

We first heard rumours about Universal entering the U.S. market back in February. After that piece, we heard from other sources who indicated that this was unlikely. This seemed to be borne out by the fact that Universal Distribution bought Diamond's Alliance Gaming Distribution arm and, per court documents, is working on acquiring Diamond UK, but left Diamond's U.S. comics business to be acquired by Ad Populum.  At the time, that seemed to settle the matter.

Until very recently, when suddenly, I started hearing new information from rather reliable folk on the UK side of things. Namely, Universal Distribution was expanding its comic book distribution services from Canada and the UK into the United States of America. This, of course, would make it a direct competitor for Ad Populum, its joint bidder on the Diamond Comic Distributor assets in the recent Chapter 11 bankruptcy auction.

And not only the word that Universal is moving such operations into the USA, courtesy of the Alliance Gaming division it has bought, but is also hiring significant numbers of Diamond Comic Distribution staffers who left or were made redundant. You know, as well as Alliance Entertainment (no relation to Alliance Gaming). The appointments have not yet been announced, and the LinkedIn accounts have yet to be updated, because that would really give the game away. But it's going to make whatever comic book industry status that emerges as a result of this look very, very interesting indeed.

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
• 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 four senior Diamond staffers.

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