Diamond Comics Files Chapter 11, Will Sell Off Alliance Game Distributors in Restructure
Big shakeups in the comics world, as a new letter reveals that Diamond Comics Distributors has filed documents for Chapter 11 bankruptcy proceedings.
According to a letter sent from its president, Chuck Parker, comics and games distribution behemoth, Diamond Comics Distributors (which also owns Alliance Game Distributors) has filed for Chapter 11 bankruptcy. The move is one of many signs of a troubled industry as rising costs coupled with stagnant wages push hard against one another.
The news came this morning, as was posted on Diamond’s home page. It’s wrth mentioning that Chapter 11 proceedings are seen as less extreme than Chapter 13—that’s the “close the business down and sell everything off” one. Chapter 11 pauses financial obligations while the business does what it can to restructure.
And per Diamond’s notice, that means in part selling off parts of the company, and receiving financing to help make sure that Diamond’s customers feel as little impact from the proceedings as possible.
Diamond Comics’ Chapter 11 Plan
In its notice, Diamond says that it plans to continue ahead with minimal disruption to its customers. Including plans to continue with Free Comic Book Day—though, I can’t help but imagine that’s an “if everything is perfect” scenario.
Especially since a big part of Diamond’s post-Chapter 11 plan is to sell off parts of itself, including Alliance Game Distributors, which is the one that’s most likely to affect you, if you’re a longtime BoLS reader.
“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. […] 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 top urchas Alliance Game Distributors coupledwith a signed Letter of Intent to purchase Diamond UK, and we remain committed to pursuing offers for all Diamond lines of busines.”
Chuck Parker – Diamond Comic Distributors CEO
If Alliance Game Distributors sounds familiar to you, that’s because they are one of the biggest distributors of board games, card games, miniatures, and tabletop roleplaying games in North America. If you’ve been to your local gaming shop (or even one not local), you’ve likely had a brush with a store rep talking about their Alliance order coming in.
And while it’s amazing that there are already plans in place for Universal Distribution to step in and take over, handling anything that large seems like a delicate operation even in the best of times.
The Diamond Comics Distributors story is likely to be rapidly changing, so check back in the future for updates on this shakeup across multiple industries.!
