One of the major issues that has yet to still be resolved regarding Diamond’s Chapter 7 process is the status of consigned goods being held by (old) Diamond and stored by Sparkle Pop. At issue is that some inventory was provided by publishers to (old) Diamond when it was in business that was provided on consignment. When Diamond went into Chapter 11, they claimed the goods were theirs due to the lack of some paperwork filed by publishers and the goods were used to obtain a loan. The publishers of course say the goods are theirs and want it back. A fight has been ongoing with a lot of maneuvering in the court.

As we reported earlier today , the Trustee who is overseeing the Chapter 7 case has asked for an extension of a deadline to figure out how to deal with it all and the Ad Hoc Committee of Consignors as well as members of the Consignment Group objected to that.

The court overseeing the case has now ruled, denying the motion to extend the time period.

Upon consideration of the Emergency Motion to Extend Time to Assume or Reject Executory Contracts Related to Consigned Goods [Docket No. 1156] (the “Motion”) filed by the Morgan W. Fisher, the Chapter 7 Trustee, and the Court having held a hearing on February 26, 2026, and considered the objections thereto [Docket Nos. 1163 & 1164], and for the reasons stated on the record at the conclusion of the hearing the Court having determined that the Motion was untimely filed under 11 U.S.C. §§ 348(c) & 365(d), it is, by the United States Bankruptcy Court for the District of Maryland;
ORDERED, that the Motion is hereby, DENIED.