Update: We now know why Alliance has decided to not purchase Diamond after a legal filing claiming fraud by Diamond.

In yet another shocking surprise when it comes to the saga that is the bankruptcy of Diamond Comic Distributors, Alliance Entertainment will not be going through with its purchase of the company after it submitting the winning bid. The company ended its acquisition plans on April 24. The following day, a member of the company’s Board of Directors announced his resignation. It’s unknown if the two events are connected.

No reason was given as to why the decision was made to no longer purchase the company, but the announcement was made in an SEC filing. No court announcement has been made yet. Logic would point fingers at the massive changes in markets recently. Alliance Entertainment has made it clear they really wanted the tabletop game/toy/collectible aspects of the purchase and with recent tariffs, that market has become volatile, unpredictable, and has forced some companies to close already. The reality is, Diamond and its various connected companies aren’t as valuable as they were when the bidding process began.

It is assumed the back-up bidders would now win the process. The back-up winning bid was a joint bid from Universal Distribution and Ad Populum which is the parent company of NECA and WizKids.

We’re awaiting any news coming from the court but the latest filings all have revolved around extending the timeline to object to the deal.