The Consignment Group, which consists of Aspen, Black Mask, DSTLRY, Dynamic Force/Dynamite, Heavy Metal, Magnetic Press, Massive Publishing, Oni-Lion Forge, Panini, Alien Books, Graphic Mundi, Titan, Vault Comics, and Dark Horse, have submitted a response/joinder to the court in support of the Ad Hoc Committee‘s motion for the court to release consigned stock currently held by Diamond.

One of the biggest fights during Diamond’s chapter 11/chapter 7 process has concerned consigned goods provided by publishers and currently held by Diamond and stored by Sparkle Pop. In short, Diamond believes they “own” the product and can sell the goods to help pay off its debts. Of course, the publishers wants their goods back.

In their response/joinder, the Consignment Group argues:

1. The publishers have a distribution agreement with Diamond for the goods on a consignment basis, but the publishers own the inventory,
2. If the distribution agreement is terminated, the goods need to be returns,
3. Diamond currently has a lack of “adequate storage,” has let insurance lapse, and the goods are still being sold unauthorized,
4. The stock is losing value and publishers aren’t able to distribute the product through other ways which is causing issues with consumers as well as contractual claims,
5. The distribution agreement has been terminated/rejected and because of that, the goods should be immediately returned,
6. Some consigned goods were provided after Diamond’s chapter 11 process began, so the trustee doesn’t have claim to that.

They’re asking the judge to grant the Ad Hoc Committee’s relief and release the consigned inventory, as well as any other relief the Court deems just and proper.

You can read the full filing below.