Diamond Comic Distributors Files Voluntary Petition for Relief Under Chapter 11

[JayC]

Diamond Comic Distributors (“Diamond” or “the Company”), today announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland to facilitate the restructuring of its business. As part of the restructuring process, Diamond has received a $39 million stalking horse bid from an affiliate of Universal Distribution (“Universal”) for Alliance Game Distributors.

The Company has received commitments for up to $41 million in debtor-in-possession (DIP) financing from JP Morgan Chase that will be used to fund post-petition operating expenses and ensure adequate working capital to meet its obligations to associates and suppliers.
 

 

 

In addition to securing DIP financing, and a stalking horse bid for Alliance Game Distributors, Diamond has received strong interest in its specialized business divisions, having also entered into a Non-Binding Letter of Intent (LOI) with Universal to acquire Diamond UK. Diamond is actively pursuing offers for, and has received interest from potential purchasers for, its other business units, including Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys, as well as its main comic, toy, and collectible distribution lines.

“Diamond has been a linchpin of the comic book industry for over four decades. Our priority has always been to provide quality service to publishers, retailers, and, ultimately, comic fans, and we remain committed to finding additional buyers for our businesses,” said President Chuck Parker.

“Universal Distribution is looking forward to working with the Alliance and Diamond UK teams to bring a stronger balance sheet and growth opportunities to retailers and suppliers. Both companies have deep roots in the industry, and we look forward to continuing that into the future,” said Angelo Exarhakos, President and CEO of Universal.

[elongatedman]

After they lost DC and marvel I thought coming 

[Steven3]

Well that's sad, I hear McFarlane Toys are already rubbing their hands together to see if they can get a piece of it.

[Admiralty_Entertainment]

2 hours ago, Steven3 said:

Well that's sad, I hear McFarlane Toys are already rubbing their hands together to see if they can get a piece of it.

I'm sure Todd would be looking strongly at snatching up Diamond Select Toys if it were a backdoor way to get the license for 7-inch Marvel figures...

[Steven3]

19 hours ago, Admiralty_Entertainment said:

I'm sure Todd would be looking strongly at snatching up Diamond Select Toys if it were a backdoor way to get the license for 7-inch Marvel figures...

Yes, yes, I think so too, I just don't know whether to be happy about it or not, will it be good for "us" (who knows)? Basically, I would be happy if they would release Marvel figures like DC(so we don't regret it:).

[JayC]

Alliance Entertainment Holding Corporation (Nasdaq: AENT), a global distributor and wholesaler specializing in music, movies, video games, electronics, arcades, and collectibles, today announced that it has been selected as the winning bidder to acquire substantially all of the assets of Diamond Comic Distributors, Inc., currently being sold through a court-supervised bankruptcy process. The proposed acquisition, which is subject to Bankruptcy Court approval, includes Diamond Comic Distributors (U.S.), Alliance Game Distributors, Diamond Select Toys & Collectibles, and Collectible Grading Authority, which collectively represent a 42-year-old enterprise recognized as a category-defining leader in comic books, tabletop games, pop-culture merchandise, and collectible grading.

“This is a transformative opportunity to expand our leadership in the world of gaming and physical collectibles and deepen our reach into thriving fan-driven categories,” said Jeff Walker, CEO of Alliance Entertainment. “With their legacy of exclusive titles, deep retail relationships, and strong presence in comics, tabletop games, and collectible merchandise, these businesses are highly complementary to our existing distribution and fulfillment model. We see powerful cross-selling potential between our product lines and customer bases, expanding the reach of our expanded product portfolio across both mass retail and specialty channels.”
 

“We’re incredibly honored to welcome the talented teams from Diamond Comic Distributors, Alliance Game Distributors, and Collectible Grading Authority to the Alliance Entertainment family,” said Bruce Ogilvie, Executive Chairman of Alliance Entertainment. “These are passionate professionals who have built deep relationships across the fandom, hobby, and collectibles communities. We look forward to supporting them, learning from them, and investing in their success. To the suppliers, creators, and publishing partners that make this ecosystem so dynamic, we’re excited to collaborate and build lasting value together. And to the customers who rely on these brands every day, we remain committed to delivering the excellent service and reliability you expect, and taking it even further.”

The acquired businesses bring a combination of scale, cultural cachet, and commercial reach. Together, Diamond Comic Distributors (U.S.), Alliance Game Distributors, and Collectible Grading Authority support over 5,000 retail storefronts, ranging from independent comic and game stores to specialty retailers, mass-market chains, and leading e-commerce platforms.

Through these businesses, Alliance Entertainment will gain deeper access to a highly engaged community of retailers and fans who form the backbone of the $50+ billion global market for tabletop games, collectibles, comics, and pop culture merchandise. These businesses have long-standing relationships with many of the most iconic brands and publishers in the fandom ecosystem, including:

Dungeons & Dragons, Magic: The Gathering (Wizards of the Coast / Hasbro)
Pokémon Trading Card Game
Marvel, BOOM! Entertainment, and Dark Horse Comics
Dragon Ball, One Piece, Digimon (Bandai Namco)

Alliance Game Distributors is a category leader in the fast-growing tabletop games sector, offering over 15,000 unique SKUs to 3,000+ independent hobby retailers across North America. It partners with over 150 game publishers, delivering industry staples and breakout hits in card games, board games, role-playing games (RPGs), and miniatures.

Diamond Comic Distributors (U.S.) is the industry’s long-standing distribution backbone for comic books, graphic novels, action figures, and licensed collectibles. With over 40 years of history, it remains the go-to fulfillment engine for 2,500+ comic shops and thousands of additional retailers through its flagship PREVIEWS® catalog, which reaches 30,000+ readers each month.

Collectible Grading Authority brings a high-value service layer to Alliance’s offering, having authenticated and graded over 500,000 collectibles for dealers, collectors, and auction firms in more than 50 countries.

These businesses will not only expand Alliance Entertainment’s product portfolio, they extend its market coverage. With substantial account overlaps already identified, the acquisition will enable immediate cross-selling potential: introducing Diamond’s fan-favorite intellectual property into Alliance’s mass retail and e-commerce channels, while bringing Alliance’s extensive catalog of physical media and licensed merchandise into thousands of specialty accounts.

“This transaction will position Alliance to deliver long-term value by bringing together some of the most iconic fan-driven brands in the world with the industry’s most efficient and scalable distribution platform,” added Walker. “It aligns directly with our strategy to grow through high-impact, capital-light opportunities that strengthen our market share and expand our margin potential. By integrating these assets, we’re increasing our product exclusivity, expanding retail and e-commerce reach, and unlocking new cross-channel synergies, all while staying disciplined in our operational execution. This is exactly the type of opportunity that supports our long-term goals for sustainable growth, profitability, and shareholder value.”

Alliance Entertainment intends to finance the acquisition through an amendment to its existing $120 million Revolving Credit Facility, which it expects to increase to $160 million. The amended facility will be secured by a pledge of the acquired assets, alongside the Company’s existing collateral. The transaction and credit facility amendment are expected to close in April 2025, subject to final bankruptcy court approval and customary closing conditions.

About Alliance Entertainment
Alliance Entertainment (NASDAQ: AENT) is a premier distributor of music, movies, toys, collectibles, and consumer electronics. We offer over 325,000 unique in-stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys, and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.

[Zirkenz]

i for one am glad Diamond is gone. They were a pain to work with if you were a mom and pop. They would always give popular stock to bigger outfits and forced you buy a lot of garbage every month to meet their minimums.  Hopefully this new company makes it more equitable.

[deecee4]

Any chance Neca will have access to whatever licenses Diamond has? 

[JayC]

It is being reported by Bleeding Cool that Diamond Select Toys is being shut down and all of it's staff was let go on Friday.

At the beginning of the year Diamond Distributors which owns Diamond Select Toys declared Chapter 11 bankruptcy. All the assets from Diamond including Diamond Select Toys were purchased by Universal Distribution LLC and Ad Populum which as we previously reported completed that purchase this past Friday.
 

 

Since Friday their have been a number of reports about layoffs that have begun at Diamond as the new owners begin the restructuring process of their new purchase, primarily on the comic distribution side of things.

Today however it is now being reported by the above mentioned BleedingCool website that the entire Diamond Select Toys division had also been shut down.

This report seems to be based primarily on a supposed social media post from Mark Herr, a former Diamond Comics executive.

"So, yesterday, new owners took ownership of the company I spent many years helping build it into the giant it became. And yesterday, the restructuring began. They aren't putting out press releases or anything of that nature as to who was let go. So, it's industry websites, social media, and direct questions to those I can ask. Now, as a reminder, while I worked there for 29 years, I have been gone for 16 years. So, there are plenty of "big names" at the company that I didn't even know.

I do know the subsidiary Diamond Select Toys was shut down yesterday and all staff let go. At least three of them are guys I know very well, all having worked there for over twenty years. I have heard that Steve Leaf was among the people let go in Purchasing. Steve would be the last surviving Purchasing member that I brought into the department. So, that's especially hard for me. (Outside of him being a really nice and very knowledgeable guy.)"

I say supposed because based on the link provided to Herr's social media by BC, I see no such post having been made. Since I didn't see Herr's post myself, I can only speculate that they deleted the post between now and BC's reporting of it. I personally have seen one person, a Production Manager at Diamond Select Toys this weekend post on their Facebook page stating that they had been let go from the company, but they did not suggest the entire company and everyone in it was let go. And I have seen no mention from any other DST employee's I follow on social media stating they have been laid off or that the company is being shut down. That doesn't mean they haven't been let go, just means they haven't stated so publicly.

Assuming this news of the new owners shutting down Diamond Select Toys is true, that leaves a lot of questions about what will happen with all the solicited products that many etailers and comics shops have been taking pre-orders on up until now???

We will update this story as more details become known.

[GnarlyCharlie85]

Will that Annihulis figure still get released? I really feel bad for those people that worked there for so many years. Times are really hard right now. 

[Reno]

The most important thing is hoping for the best of those employees. Having been through layoffs myself, it's a very hard time and the current employment market isn't terribly forgiving. My thoughts are with those who have been displaced and hope that they soon find themselves in better situations.

[JayC]

I have confirmed with some retailers who have been told DST is in fact shutting down. Its still unclear what will happen with open pre-orders but general thought is they will be canceled.

[JayC]

And yes as always with this type of news we can hope anyone laid off will end up landing on their feet and be able to embrace new opportunities.

 

[deecee4]

Oh man, terrible news.

 

Edit:also i know a lot of people didnt care for what they made but just wanted to shoutout my personal greatest hits:

-Black Hole figures, Maximillian having an alternate head with Reinhart inside was just sick!

-Tron Tomy homage set, my ideal versions of their 7 inch Tron figures.

-Marvel Select Juggernaut, Colossus, Silver Centurion, Crimson Dynamo, Titanium Man and Immortal Hulk. 

[Scattergorical]

The only guy I knew about that worked with DST was former 4 Horseman Chris Dahlberg. He's a great artist and I dearly hope he is able to get his work out there in other lines.

[Admiralty_Entertainment]

Say what you will about Diamond itself, DST really made some great stuff over the years and it's terrible to lose another source of cool merch. Lots of love and support to the talented and hard-working staff affected by this, fingers crossed they get snapped up by other companies really quickly.

[JayC]

So Zach Oat who you may know from DST has confirmed on his linkdin account that he has been laid off.

Also IDK how or if this will have any baring, but it should be noted that one of the two entities, Ad Populum who purchased the Diamond assets also owns NECA Toys.

[deecee4]

7 hours ago, JayC said:

So Zach Oat who you may know from DST has confirmed on his linkdin account that he has been laid off.

Also IDK how or if this will have any baring, but it should be noted that one of the two entities, Ad Populum who purchased the Diamond assets also owns NECA Toys.

As far as Zach, who was pretty much the face of the company engaging with collectors, maybe Neca can hire him on in a similar role since it doesnt seem like Randy Falk does that type of stuff anymore in recent years. 

Was Clayburn Moore still working for Diamond? Hes the only other name I know who worked there.

[Scifantasy]

Bummer , no trek ships or vehicles for sure now.

[Satam]

3 hours ago, Scifantasy said:

Bummer , no trek ships or vehicles for sure now.

Maybe Nacelle will move in and take DST's place.

[ucsf]

All my thoughts are with the ex-employees now. I can't really think of the figures or merch as of now.