Earlier this week, there was a hearing regarding Sparkle Pop‘s sale of consigned inventory they shouldn’t have been selling brought forth by Diamond as part of their chapter 11 drama. While the actual hearing was resolved it seems rather quickly, we’ve been waiting for the official order with the details as to what the court decided. It was a rather open and shut case in a general sense, so it was all about the details with this one.

You can read the full filing below after the summary of what the court had to say.

1. Sparkle Pop needs to stop all sales, marketing, and advertising of the goods held on consignment. Sparkle Pop has said they’ve already stopped, so this one was pretty open and shut. Sparkle Pop still needs to file a written Certification to the court that it has complied.
2. Sparkle Pop needs to provide to Diamond and to two of the groups representing some publishers a detailed account, certified by an officer of Sparkle Pop, that has the name of the vendor who provided the product, the name and title of the product, the SKU, and other identifying information, the gross sale proceeds received, the quantity sold and date sold, and the manufacturer’s retail price of the product.
3. Sparkle Pop needs to pay the gross proceeds of the sale of the consigned inventory into the Registry of the Court. It’ll be held by the court until other decisions have been decided. If any other money comes in due to this, that’ll be turned over too.
4. The TSA and APA Sparkle Pop agreed to is still in force.
5. Diamond’s move for damages included attorneys’ fees and costs related to the recovery will be heard at a later date.
6. JPMorgan Chase Bank’s claims and liens when it comes to the consigned inventory isn’t impacted by this.

None of the above is surprising, it really came down to where the money would be held.