(New) Diamond drops its No Cost Reorder Service for Publishers and more updates for Diamond’s Chapter 11
FairSquare Graphics‘ Fabrice Sapolsky posted that Diamond has dropped a needed service for publishers, its “No Cost Reorder.” Through it, publishers would be able to get their books from Diamond’s warehouse when it was needed for conventions or signings.
Sapolsky has said that Diamond has 7,500 copies of their graphic novels now stuck at Diamond’s Olive Branch warehouse in Mississippi which the publisher needs. They’ve received no communication on any changes.
It has also come out that (new) Diamond has yet to pay publishers for stock sold on top of this sudden change. While weekly statements are given, the money, not so much.
Sapolsky stated in his post while also contemplating legal action:
We’re completely in the dark. No message. No email. No calls. No communication from the new Diamond management. This is bad. Really bad.
Retailers are also reporting that Diamond has changed their payment requirements, charging stores for product as soon as it is shipped as opposed to cash on delivery.
This is just the latest twist, change, headache, drama, insanity regarding Diamond’s Chapter 11 status which was announced in January 2025. What we don’t know are the specifics of the contracts with (old) Diamond, nor if any aspects to the contracts were made by (new) Diamond that would allow for such abrupt changes. We have a list of contracts assumed by Universal Distribution during this process and waiting on the same list regarding Ad Populum/Sparkle Pop. It tells us the “who” but not the “detailed what” when it comes to all of that.
We have reached out to Ad Populum/Sparkle Pop regarding all of these changes.
In other updates regarding the court process for that:
Stephenson Harwood LLP is asking for s £72,741.20 for compensation (80% of £90,926.50) and £14.00 for work they’ve done for Diamond during this process. The work was done between January 14, 2025 and March 31, 2025. What stands out is the amount sought is in £. It’s for work regarding Diamond Comic Distributors UK, which is incorporated under the laws of England and Wales.
Stephenson Harwood provided legal advice when the Debtors’ stalking horse purchaser initially contemplated a separate asset purchase agreement for Diamond UK’s assets.
So far, the status of Diamond UK has been up in the air and no one is quite sure as to where it stands. Going off these court documents, it would seem that Universal Distribution was attempting to purchase it at some point.
When it comes to the fights within the fight. Alliance Entertainment has retained the services of Randy Moonan in its ongoing legal disputes. Alliance had accused Diamond and various representatives of fraud during its initial bid and recently Sparkle Pop submitted a suit against Alliance for breaking NDAs and stealing secrets during the Chapter 11 process to compete against Sparkle Pop/Diamond. Moonan would help Alliance in both cases and is being asked to appear pro hac vice for the proceedings as counsel.
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