Posted in: Comics, Comics Publishers, Current News, Image | Tagged: bankruptcy, diamond

Week One Of Diamond's Thirteen Weeks Of Bankruptcy Proceedings Is Up

Week One of Diamond's thirteen weeks of bankruptcy proceedings is up. Bleeding Cool is looking at Diamond's plans going forward.

We have reached the end of the first week of Diamond Comic Distributors' thirteen-week Chapter 11 bankruptcy period. Twelve weeks to go until we know whether or not Diamond will have a future and who with. Bleeding Cool will continue analysis, details, scoops and speculation over what may be a very troublesome period for the comic book industry and art form in America, with articles planned all this week for Diamond Bankruptcy Week Two, and you can keep up with this Diamond coverage tag. Chris Powell, Chief Sales & Service Officer at Diamond, has told retailers the following;

"In our announcement last week, it was mentioned that Diamond would have access to significant Debtor in Possession (DIP) Financing. This is a key part of the process we are going through, but one that is not familiar to everyone, even publishers and other distributors. In short, JP Morgan Chase Bank has allocated a significant budget to support our operations as we go through the steps of this reorganization. This ensures we can pay our vendors as well as keep our other operational financial commitments. Ultimately, the financing allows us to continue receiving and distributing products in "business as usual" mode, continuing to provide crucial services to retailers, publishers, and other distributors."

How much, well looking at the paperwork, $41 million. Which should pay off a few bills, but in the context that their top thirty debtors are owed over $30 million.

"Image Comics has made the decision to consolidate their distribution to one supplier, Lunar Distribution, and will not be filling the orders we placed on behalf of retailers. Orders for any outstanding products will need to be placed through Lunar. All orders for upcoming Image Comics products will be canceled later this week. The developers for our ComicSuite software and Pullbox website are working to assist retailers with this transition and will update retailers as updates are available.cDiamond maintains a robust selection of Image Comics backlist product, so retailers are still free to add those items to their weekly restock orders."

Until Image Comics manages to get the backlist back, of course. The latest Previews catalogue should be back on track, and in comic book stores next week. Powell continues;

"Consumers and retailers alike will be receiving the February PREVIEWS Catalog, a much-anticipated part of everyone's month, on January 29. Because many of the products in PREVIEWS are produced in advance of when they are shipped to retailers and consumers, having accurate order numbers for those products is very important. Some retailers have asked if they should still be placing orders for product releasing in the future, and the answer is an absolute yes."

But what if other publishers follow Image Comics in restricting sales to Diamond?

"If we are unable to fulfill a product, we will work with other distributors to help our retailers order it from a different source. We are working to avoid further disruptions as we continue through this process, and will continue to give you our best, supporting your stores in every way that we can."

Especially considering how much money some stores still owe Diamond…

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