Hearing is set for October over Diamond’s Consignment Goods Compromise

It’s been an interesting month when it comes to (old) Diamond Comic Distributor‘s chapter 7 case. After a year of fighting, Diamond and its trustee Morgan W. Fisher came to a compromise with 15 publishers regarding consigned goods.
Diamond was the major distributor for the comic and tabletop game industry and some of the items it sold were on consignment. Diamond declared chapter 11 and a fight began over those goods with Diamond claiming ownership and wanting to sell them to help pay back its debts. Publishers of course wanted their goods back. It’s been a back and forth in the court over who has a right to the goods. Add in Sparkle Pop, the company that bought some of Diamond’s assets, was storing the goods in the warehouse they took over from Diamond and the new distributor sold some of the stock without permission from Diamond or the publishers.
In early August it was announced that Diamond, Fisher, and 15 publishers came to an agreement that would allow the publishers to get back their goods while Diamond would keep most of the money of the consigned goods sold during the dispute (it’s a bit more complicated but that’s the general compromise).
Lending bank JPMorgan Chase submitting a filing with a “reservation of rights” while Sparkle Pop submitted a filing objecting to the compromise.
Now, the court will take up the motion, response, and objection in a hearing set for October 6.
Notice of Hearing (related document(s)[1309] Application to Compromise Controversy filed by Trustee Morgan W. Fisher, [1328] Response filed by Creditor JPMorgan Chase Bank, N.A., [1331] Objection filed by Interested Party Sparkle Pop LLC). Hearing scheduled for 10/6/2026 at 10:00 AM. In person hearing Courtroom 9-D Baltimore, Judge Rice. (Scott, Cherita)
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