Diamond‘s motion to move from chapter 11 to chapter 7 has been approved. The order was released on December 19 after some changes to Diamond’s initial plan.

Chapter 7 means an individual is appointed to gathers all of the financial data as to what is owed to who, liquidates all remaining assets, then pays back the creditors. The business is then shut down. This is the official last days of “old” Diamond.

But, what’s the actual process and timeline? The order lays things out pretty well.

1. The case will be converted officially to chapter 7 “effective at 11:59 pm on the fifth business day after the entry of this Order.” With the order filed on October 19, then it should be official on December 26th… though if courts are closed for the holidays it might be the 29th or 30th.
2. An appointment will be made for the chapter 7 trustee. This is the person who manages all of this.
3. 14 days after that trustee is appointed, Diamond will turn over its books and records to the trustee.
4. Within 30 days of the conversion date, around January 25, Diamond will file a schedule of unpaid debts incurred after its chapter 11 case began. That will include the names and addresses of each creditor.
5. Within 30 days after the conversion date, Diamond will provide the Trustee and file a final report as per rule Bankruptcy Rule 1019.
6. Omni, one of the companies helping manage the chapter 11, turns over all of the claims information within 14 days, unless they’re retained for the chapter 7 portion.
7. Professionals involved have 30 days of the conversion date to submit their final fee applications. Objections then have 21 days to be filed. A hearing is then held to consider all of the fees.
8. Omni, a company managing filings and notifications, are relieved of their responsibilities as far as notifications.
9. The Ad Hoc Committee of Consignors gets $156,000 and Consignment Group gets $144,000 to go towards their administrative claims accrued prior to May 15, 2025. The final amount of those claims will be determined later and if it’s less, money will be returned.
10. All contested matters and adversary proceedings in the bankruptcy case are stayed until February 16, 2026.

And that’s where we’re at with more to come in 2026.