1. Why did Diamond Comic Distributors decide to file for Chapter 11 bankruptcy?
The unexpected loss of certain exclusive publisher relationships, coupled with an overall contraction in consumer spending, rising inflation and loss of profits across key print product lines, contributed to the decision. After exploring all available options, Diamond determined that filing for Chapter 11 was the best course of action to reorganize its operations and ensure the most favorable outcome for all stakeholders.
2. What factors in the industry contributed to this decision?
In the wake of the pandemic, the entire comics industry has experienced reduced consumer activity and increased operating costs, and Diamonds is no exception. Shrinking profits, increased expenses, declining sales, and a desire to achieve the best results for the majority of our suppliers, customers and employees all contributed to this decision.
3. What is Chapter 11? Does this mean the company is going out of business?
Chapter 11 filing is typically an action taken by a company to protect its ongoing business from financial claims while it continues to operate. During Chapter 11 proceedings, a company typically reorganizes its finances and manages its operations to best satisfy the claims of those who owe money. Diamond has secured funding from lenders to enable it to meet its post-filing obligations and continue operations in the process.
4. Will other companies take over?
As part of the restructuring process, the company has received a bid from Universal Distribution for Alliance Game Distributors, with which it has signed a letter of intent to acquire Diamond UK. We are also actively pursuing additional Diamond Comic Distributors assets and business lines, including our comics, toy and collectible publishing, Diamond Book Distributors, Collectible Grading Authority and Diamond Select Toys.
5. How will I be affected as a customer?
During this process, Diamond Comics Publishers will continue to fulfill orders and operate business as usual. We are currently in discussions with companies within and outside the industry to acquire a stake in Diamond. Our aim is to minimize any potential impact on retailers and ensure continued, uninterrupted flow of product.
- As is our practice, we will continue to issue an invoice once the product has been shipped.
- Once shipped, products cannot be returned, except for the Publisher Returns Program and our standard defective product replacement policy.
6. What happens to my pending order? How do I confirm their status?
Unless otherwise notified, pending orders will be processed as usual. You can check the status of your pending orders by visiting Report Section of the Retailer Services website. This section will continue to provide the latest information on orders, shipments, and invoices.
7. Will there be any changes to how points or refunds are processed?
Return credits will continue to be processed according to the normal schedule. If you have prepayment credit terms, canceled product orders will be credited to your account. No cash refunds will be issued and all points must be used towards future purchases.
8. Should I continue to pay outstanding invoices to Diamond?
Yes, all outstanding invoices, debt payments and payment plans remain due and payable according to usual terms and timetables and should be paid. For specific issues with your account, please open a support ticket on the Retailer Services website.
9. Will my retailer discount level or terms (e.g. payment terms, credit limit) remain unchanged during the process?
Currently, all credit terms and retailer discount tiers remain unchanged.
10. Will Dimon hold another Free Comic Book Day this year? If not, is there a contingency plan?
For now, Diamond remains committed to supporting Free Comic Book Day (FCBD) as planned. We understand the importance of this event to retailers and fans and will work closely with participating publishers to ensure the event runs as smoothly as possible.
However, changes or adjustments may occur as we engage in the restructuring process. If Diamond is unable to fully facilitate FCBD, we will actively explore contingency plans to ensure stores can still receive materials and participate in this critical activity.
We will provide updates as more details become available.
11. Will my affiliate game reseller orders be affected?
During this process, affiliated game publishers will continue to operate as normal. Your current and future Alliance orders will not be affected.
12. What about my diamond order information?
Diamond will continue to provide order information for your records in accordance with our common practice.
13. What happens to ComicSuite and Pullbox?
As more information becomes available, retailers using ComicSuite and/or Pullbox will receive further communications regarding these tools.
14. What will happen Preview Table of contents?
We will announce any changes as this process progresses Preview Because more information is available.
15. If I have additional questions, who should I contact?
Please submit your ticket through our online Retailer Support Center or contact us Customer support @diamondcomics.
