Diamond Comics Distributors, one of the largest companies involved in selling graphic novels in brick-and-mortar stores, filed for bankruptcy and winds down operations as the industry prepares for a new wave of economic challenges. are.
In a letter sent today to comic book retailers and publishers, Diamond President Chuck Parker said the company is filing for Chapter 11 bankruptcy “to protect the most important aspects of our business. , plans to sell its Alliance Game Distributors division to Universal. ”
“This decision was not made lightly, and I understand that this news may be as difficult for me to hear as it is to share,” Parker explained. “Diamond's management team and I have worked tirelessly to avoid this outcome, but the financial challenges we face leave us with no other viable options. ”
Founded in 1982 by Stephen A. Geppi (who still serves as CEO), Diamond became a heavyweight in the comics business, with numerous exclusive distribution deals with various publishers including DC, Marvel, and Image. For decades, Diamond Inc. preview Magazines that showcase upcoming titles — helped bring comics to market and played a big role in determining a book's success. preview Affected retailer orders.
News of Diamond's bankruptcy comes weeks after the company abruptly closed its flagship fulfillment center in Plattsburgh, N.Y., but Chris Powell, the company's vice president of retail services, said this was due to the distribution process. The move was necessary to address long-standing operational issues that have made the country unsustainable.
“Ideally, the changes would have been planned and tested while the business continued as it did when it was in Plattsburgh,” Powell said. “That is no longer an option, so changes must be made and tested with real data and shipments while minimizing the impact on retailers.”
In recent years, many of Diamond's major publishing partners have dropped ties as Diamond has been unable to meet scheduled delivery times to retailers and its stores have struggled to meet customer demand. The announcement of a bankruptcy filing isn't entirely surprising, given Diamond's recent tough times. The company's management seems to want to stay in the comic book world for as long as possible, but as things stand, it seems like all Diamond can do is try to stem the bleeding for as long as possible.
