Dear Valued Customer, I’m writing to share one of the most challenging messages of my career. Earlier today, Diamond made the difficult but necessary decision to file for Chapter 11 bankruptcy. This step is intended to stabilize our financial foundation and protect the most vital aspects of our business. This decision was not made lightly, and I understand that this news may be as difficult to hear as it is for me to share. The Diamond leadership team and I have worked tirelessly to avoid this outcome but the financial challenges we face have left us with no other viable option. Chapter 11 will provide us with the opportunity to restructure and address our financial obligations. This process will likely include the sale of key assets of Diamond Comic Distributors. We have already received a commitment from Universal Distribution to purchase Alliance Game Distributors coupled with a signed Letter of Intent to purchase Diamond UK, and we remain committed to pursuing offers for all Diamond lines of business. What does this mean for you? I want to reassure you that, with secured financing in place to support our operations, Diamond Comic Distributors is committed to continuing business as usual throughout this process. Our plan is to continue fulfilling orders in a complete and timely fashion and we are working hard to minimize any disruptions to your orders. We will be as transparent as possible during this process and will keep you informed of significant developments. If you have any questions, please reference the Retailer FAQs below, also available on our Retailer FAQs page on the Retailer Services Website. With further inquiries, as always, you can submit a ticket via our online Retailer Support Center or contact us at customersupport@diamondcomics.com. Thank you for your support. We are committed to your business and ensuring that your needs are met as we navigate this process.”
This is followed by the following FAQ for retailers…
- Why did Diamond Comic Distributors decide to file for Chapter 11? The unexpected loss of certain exclusive publisher relationships, compounded by an overall contraction in consumer spending, increased inflation, and a loss of margin on key print product lines contributed to this decision. After exploring all available options, Diamond determined that filing for Chapter 11 is the best course of action to restructure its operations and secure the most favorable outcome for all stakeholders.
- What were the contributing factors in the industry that led to this decision? Post-pandemic, the comic book industry at large has seen a decrease in consumer activity paired with rising operating costs, and Diamond is no exception. Shrinking margins, growing expenses, and a decline in sales, as well as the desire to achieve the best possible outcome for the majority of our vendors, customers, and employees all contributed to this decision.
- What is Chapter 11? Does this mean the company is closing? A Chapter 11 filing is generally an action a company takes to protect its ongoing business from financial claims while it continues operations. During Chapter 11 proceedings, the company typically reorganizes financially and manages its operations to best meet the claims of those to whom it owes money. Diamond has received funding from its lender to enable it to meet post-filing obligations and continue to operate while it goes through this process.
- Is there another company taking over?As part of the restructuring process, the Company has received a stalking horse bid from Universal Distribution for Alliance Game Distributors and signed a letter of intent with the same company to buy Diamond UK. We are also actively pursuing offers for additional Diamond Comic Distributors assets and lines of business, including our comic, toy and collectible distribution, Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys.
- How will I be impacted as a customer?Diamond Comic Distributors will continue to fill orders and operating business as usual during this process. We are currently in discussions with companies inside and outside of our industries to acquire parts of Diamond. Our goal is to minimize any potential impact on retailers and ensure the continued, uninterrupted flow of products. According to our customary practice, we will continue to invoice once a product ships. Product cannot be returned once it has been shipped except in the case of publisher return programs and our standard defective product replacement policy.
- What happens to my pending orders? How can I confirm their status? Pending orders will be processed as usual unless otherwise communicated. You can confirm the status of your pending orders by visiting the Reports section of the Retailer Services Website. This section will continue to provide up-to-date information on Orders, Shipments, and Invoices.
- Will there be any changes to how credits or refunds will be handled? Credits for returns will continue to be processed on the usual schedule. If you have prepay credit terms, orders for products that are canceled will be credited to your account. No cash refunds will be issued and all credits must be used toward future purchases.
- Should I continue paying my outstanding invoices to Diamond? Yes, all outstanding invoices, back debt payments, and payment plans remain due and payable under the usual terms and schedule and should be paid. For specific questions regarding your account, please open a support ticket on the Retailer Services Website.
- Will my retailer discount tiers or terms (e.g., payment terms, credit limits) remain unchanged during this process?At this time, all credit terms and retailer discount tiers remain unchanged.
- Will Diamond still facilitate Free Comic Book Day this year? If not, are there contingency plans? At this time, Diamond remains committed to supporting Free Comic Book Day (FCBD) as planned. We understand the importance of this event for retailers and fans alike and will be working closely with participating publishers to ensure the event proceeds as smoothly as possible. However, as we navigate the restructuring process, there may be changes or adjustments. In the event Diamond is unable to fully facilitate FCBD, we will be actively exploring contingency plans to ensure that stores can still receive materials and participate in this critical event. Updates will be provided as more details become available.
- Are my Alliance Game Distributors orders impacted? Alliance Game Distributors will continue operating as usual throughout this process. Your current and future orders with Alliance will not be impacted.
- What about my Diamond order data?Diamond will continue providing order data for your records as per our usual practice.
- What will happen with ComicSuite and Pullbox? Retailers using ComicSuite and / or Pullbox will receive further communication about these tools as more information becomes available.
- What will happen with the PREVIEWS catalog? As this process moves forward, we will announce any changes to PREVIEWS as more information is available.
- Who do I contact if I have additional questions? Please submit a ticket via our online Retailer Support Center or contact us at customersupport@diamondcomics.com with further questions. We will answer all questions as quickly as possible and provide updates via our Retailer Services Website as more information becomes available.
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