Posted in: Comics | Tagged: Ad Populum, diamond, zenescope

Zenescope Pulls Out Of Diamond Comics, Considers Legal Action

Zenescope pulls out of Diamond Comic Distributors, looks to consider legal action, and moves to direct store distribution

Joe Brusha is the owner and president of Zenescope Entertainment, one of the biggest comic book publishers, which is still exclusively with Diamond Comic Distributors, alongside Dynamite Entertainment. But not for long. He told Bleeding Cool the following;

"I read your recent article, "Diamond Owner Ad Populum Still Ghosting Comic Book Publishers," and I wanted to follow up directly with our situation at Zenescope. We are one of the publishers currently being ignored by Ad Populum, and I sent them the email below earlier this week after months of non-payment… which I've kept private until now:"

I'm the owner of Zenescope Entertainment. We have not been paid on invoices dating back to early May. This includes both past due amounts from Diamond and new invoices since then. This does not include the $70,000+ still owed to us from the bankruptcy. This is current, unpaid business. As a small publisher, we simply cannot continue to operate under these conditions. Our accounts receivable manager has made multiple requests for updates or a direct contact and those requests have gone unanswered. Let me be clear: our financial situation is reaching a crisis point, and my patience is gone. If we do not receive a response within 48 hours, we will halt all shipments to you until payment is made.

I have held back from going public with this, including speaking to outlets like Bleeding Cool, because I didn't want to throw more fuel on what is already a dumpster fire. But if we continue to be ignored, I will start making this situation as public as possible. This is no way to conduct business.

"As of now—72 hours later—we've received no response. Not in 24 hours, not in 48, and not in 72. To be clear, we are not referring to the $70,000+ owed to us from the previous Diamond bankruptcy. That's a separate issue. These are new invoices, current business from May onward—and they've gone completely unpaid, with no answers to repeated requests from our Accounts Receivable manager. We've since heard from sources inside Diamond that some Ad Populum leadership hasn't even met with or communicated with core Diamond staff yet. It's astonishing."

"We're likely going to have to explore legal options at this point. And based on what I'm hearing, I doubt we're the only publisher considering that path. If other companies are in the same boat, it might be time to coordinate efforts. We will be sending out PR early next week alerting retailers they will not be getting our new releases from Diamond for the foreseeable future and that they can order directly from us."

Bleeding Cool reached out to Ad Populum earlier today, but has not heard back.

You can use these Diamond and Ad Populum 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 Gaming and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
•  Bruce Ogilvie, AENT chairman, was invited onto a podcast with comic book retailers Dennis Barger and Jesse James after, apparently, watching my performance on the Beyond Wednesdays podcast in which he talked about AENT and Diamond.
• 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 seven senior Diamond staffers.
• Universal Distribution rumoured to be hiring Diamond staffers to enter the US market.
• Massive Distribution expands within Lunar
• Diamond has cancelled all their PRH orders.
• There are problems with Ad Populum's first payments to comics publishers
• Ad Populum sues AENT alleging breaches of confidentiality and staff poaching.
• Ad Populum still ghosting publishers.
• Bankruptcy timeline revealed it began in July 2024
• Diamond ends cash on delivery sales
• Hermes Press hires Steve Leaf
• Diamond responds to Dynamite
• Diamond closes No Cost Orders, sends out reminder emails to comic book stores
• Boom Studios makes layoffs.

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