Tag Archives: alliance entertainment

It’s official, Alliance Entertainment has been Approved to purchase Diamond Comic Distributors, Diamond Select Toys

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We have the official word that Alliance Entertainment has been approved to purchase Diamond Comic Distributors and Diamond Select Toys. We had an initial hint earlier today but the official court documents have been released.

In a hearing Alliance and Diamond reached an agreement with the “respect to the sale of substantially all of the Debtor’s Assets to Alliance.”

Bandai Namco, The Pokémon Company International, Inc., and counsel to AIREIT Olive Branch DC LLC and Anson Logistics Assets LLC did not object to the order after doing so leading up to the hearing.

This is a breaking story and will be updated as we work through all of the documents below.

Is it Alliance Entertainment for the Win in the Diamond Chapter 11 Bidding?

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Alliance Entertainment

In a stipulation to extend the period in which unsecured creditors may assert a challenge under the final dip order, it would seem that the cat is out of the bag and Alliance Entertainment might be the winner when it comes to the bid for Diamond Comic Distributors and their Chapter 11 filing.

The challenge to the final dipper order allows parties in interest, like creditors or a creditors’ committee, to object to the order and contest specific terms, such as the validity of prepetition liens or obligations.

In the order this stood out with the bold part the most interesting aspect:

WHEREAS, on April 8, 2025, the Court held a continued hearing (the “Sale Hearing”) on the Debtors’ Motion for Entry of an Order (I) Approving the Sale of Substantially All of the Debtors’ Assets Free and Clear of Liens, Claims, Interests and Encumbrances (II) Approving the Assumption and Assignment of Executory Contracts and Unexpired Leases; and (III) Granting Related Relief [D.I. 168], at which the Court indicated that it was prepared to enter an order approving the sale of substantially all of the Debtors’ assets to Alliance Entertainment, LLC (the “Sale”), upon the Debtors’ submission of a final form of order and revised asset purchase agreement consistent with statements made on the record at the Sale Hearing; and

On Monday, a hearing was held to nail down the final winning bid for Diamond Comic Distributors which declared Chapter 11 in January 2025. Alliance Entertainment was initially announced as the winning bid. On Saturday, in a shock, Diamond said it was going with a different bid which then led to objections to that from Alliance. Lots of bankruptcy drama! It has been quiet as to who won the bid until now.

It would seem that creditors have until April 25 when the sale hearing closes and this drama might be behind us… maybe…

Check out the full court document below.

Alliance submits a complaint over Diamond’s last minute switch to Universal in its Acquisition

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Diamond Comic Distributors

The maneuvers continue and Alliance Entertainment has submitted a complaint over Diamond Comic Distributors‘ decision on Saturday to reject Alliance Entertainment’s bid as originally announced and instead go with a joint bid by Universal Distribution and Ad Populum.

In the complaint, Alliance Entertainment claims they submitted the “highest and best” bid. It has been stated elsewhere that Universal and Ad Populum’s bid was higher.

It goes on to further state that Diamond has committed an auction that was unfair. In other objections to the initial decision in choosing Alliance, creditor parties said the auction was unfair in choosing Alliance and that there was higher bidders.

Alliance Entertainment still wants to close the sale transaction and court’s approval.

It would seem that Monday’s hearing is going to be an interesting one!

Alliance Entertainment releases its Witness and Exhibit List for its Diamond Bid

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Monday is a big day with a bankruptcy court session focused on the bids and purchase of Diamond Comic Distributors. While many assumed Alliance Entertainment would win the process, a wrench was thrown into things yesterday when Diamond signaled it was going with the highest bid from Universal Distribution and Ad Populum.

Alliance isn’t going down without being heard it seems and has released its list of witnesses and exhibits its bringing to the hearing. You can see all of that below, none of it is really exciting, just a list with no real new details.

It just continues to show that things are up in the air still and this isn’t over until the court approves any deal(s).

Is it a last minute switch? Will Universal Distribution and Ad Populum get Diamond Comic Distributors on Monday?

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Diamond Comic Distributors

We said when the successful bid was announced for Diamond Comic Distributors that there was a long way to go and everything wasn’t settled. And, in a filing today, it seems a last minute monkey wrench is being thrown into things. A filing today seems to indicate that Diamond Comic Distributors might be going with Universal Distribution and Ad Populum‘s joint bid in their chapter 11 bankruptcy hearing on Monday, April 7.

In January 2025, Diamond Comic Distributors declared Chapter 11 bankruptcy creating a shockwave within the comic industry. In the announcement, the distributor listed its liabilities in the $50-$100 million range with assets around the same amount and creditors between 1,000 and 5,000. In March 2025, Alliance Entertainment’s bid was the one initially accepted to acquire Diamond Comic Distributors (U.S.), Alliance Game Distributors, Collectible Grading Authority, and more.

There have been numerous objections to the “winning” bid by Alliance Entertainment with numerous creditors asking why a lower bid was accepted?

It would seem, that Diamond might be agreeing with that.

Here’s the paragraph in the latest filing that stands out with the key part highlighted in bold.

PLEASE TAKE FURTHER NOTICE that, following the Debtors’ initial selection of AENT as the successful bidder, the Debtors currently believe, after consultation with the Consultation Parties, that Universal Distribution, LLC, and Ad Populum, LLC, which were initially jointly designed as back-up bidders at the Auction, should be the successful bidders. The Debtors’ proposed order with Universal Distribution, LLC, is attached hereto as Exhibit A (the “Universal Revised Proposed Order”). A redline of the Universal Revised Proposed Order compared against the proposed order filed with the Sale Motion is attached hereto as Exhibit B. The Debtors revised proposed order with Ad Populum, LLC, is attached hereto as Exhibit C (the “AP Revised Proposed Order”). A redline of the AP Revised Proposed Order compared against the proposed order filed with the Sale Motion is attached hereto as Exhibit D. The Debtors currently intend to seek Court approval of the Universal Revised Proposed Order and the AP Revised Proposed Order at the hearing on the Sale Motion. The Debtors are continuing to discuss the Sale Motion and revised proposed orders with the Consultation Parties.

I am not a lawyer, and definitely not a bankruptcy lawyer, but reading the above, it would seem Diamond is going with Universal and Ad Populum are going to be the winning bid and consulting with an actual lawyer, they agree with my reading of it.

Monday’s hearing is going to be really interesting. Any decision must get final approval by the court. You can read everything below:

Skyrush Marketing Inc. objects to the sale of Diamond’s CGA

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Collectible Grading Authority logo

A hearing regarding the sale of Diamond Comic Distributors and related companies is set for Monday April 7, and objections over the deal(s) are coming in. Skyrush Marketing Inc. has submitted an objection over the sale of Collectible Grading Authority (CGA).

Collectible Grading Authority is one of the numerous companies that focus on grading collectibles for collectors focusing on action figures, collectible dolls, die-cast toys, and video games.

Skyrush Marketing Inc.’s objection is over Alliance Entertainment being awarded the winning bid even though Skyrush bid higher.

According to the filing, Skyrush was declared the highest bidder with a bid of $1.65 million. Even with that winning bid, CGA was grouped into Alliance Entertainment’s winning bid.

Skyrush further claims the process did not give them a fair opportunity to compete and the asset value of CGA was not disclosed in one of the lots.

Skyrush is asking the court to consider if the sale of CFA as part of Lot D (Alliance’s winning bid) was conducted in a “manner consistent with fair auction procedures.”

You can read the full objection below:

Bandai Namco submits an “Objection” to Diamond Comic Distributor’s sale

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Bandai Namco

Early today it was announced that the United States Bankruptcy Court for the District of Maryland has scheduled a hearing for Monday, April 7, to consider Diamond Comic Distributor’s request for the approval of the sale of the company to Alliance Entertainment through the bankruptcy process. Bandai Namco has submitted a “reservation of rights and limited objection” to the approval of the sale.

Bandai is owed $4,292,620.24 according to the filing and “out of abundance of caution” filed a Reservation of Rights pending review of the final sale order and any amendments to the purchase.

They have staked their right to object to the “Sale Motion and the Sale Order on any factual or legal basis,” “to appear
and be heard by the Court with respect to the Sale Motion and Sale Order,” and “grant such other and further relief as may be just and property.”

What seems to be new information from the filing, Universal Distribution might have submitted a higher bid than Alliance Entertainment who was awarded the win. There are questions of how fair the process was in Bandai’s filing. While there were rumors of higher bids, this is the first naming of who that we’ve seen.

Bandai isn’t the first to file an objection. Image Comics and Pokémon Company International both have previously filed their concerns.

You can read the full filing below.

Court Hearing to Approve the Bid for Diamond Comic Distributors set for Monday April 7

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Diamond Comic Distributors

Diamond Comic Distributors has announced that it is continuing to finalize documentation for the sale of the assets of Diamond Comic Distributors, Alliance Game Distributors, Diamond Book Distributors, Diamond Select Toys & Collectibles, Collectible Grading Authority, and other related assets. The United States Bankruptcy Court for the District of Maryland has scheduled a hearing for Monday, April 7, to consider Diamond’s request for the approval of the sale. All divisions of Diamond will continue to operate in the ordinary course as the process continues. Diamond’s U.K. business operations are not included in the proposed sale and continue to operate business as usual as well.

In January 2025, Diamond Comic Distributors declared Chapter 11 bankruptcy creating a shockwave within the comic industry. In the announcement, the distributor listed its liabilities in the $50-$100 million range with assets around the same amount and creditors between 1,000 and 5,000. In March 2025, Alliance Entertainment’s bid was the one accepted to acquire Diamond Comic Distributors (U.S.), Alliance Game Distributors, Collectible Grading Authority, and more.

Below is the official court notice:

Image Comics Files an Objection to Diamond’s Acquisition

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Image Comics logo

Yesterday, news broke that Diamond Comic Distributors had been purchased by Alliance Entertainment as part of its Chapter 11 bankruptcy. We said in that article there was a long way to go before the matter was settled and there’s already been multiple objections. First there was issues with folks who Diamond leases space from, then Pokémon Company International submitted a response and objection to the deal. Now, Image Comics has filed an objection for multiple reasons.

In the filing, Image is using an agreement the company and Diamond Comic Distributors entered into in April 2024. In that agreement, Diamond was the “exclusive” agent to sell product consigned as a distributor for “channels outside the United States, Canada and Mexico.”

Image is claiming the amount listed that is owed is incorrect and that it as at least $69,224.63 but is unknown because sales reports have not been sent to Image since November 2024. The second reason is that Image needs to approve their contract being handed over.

Due to all of that, the comic publisher is asking the Court to deny “the Debtors’ assumption and assignment of the Agreement to a Successful Bidder.” If the sale is approved, Image wants the correct amount owed that would be determined by the missing sales reports.

As we said, there’s a long way to go before things are completely settled.

You can read Image and Diamond’s agreement below:

Pokémon Company International has an issue with the Alliance Entertainment purchase of Diamond Comic Distributors

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Pokemon logo

Earlier today, news broke that Diamond Comic Distributors had been purchased by Alliance Entertainment as part of its Chapter 11 bankruptcy. We said in that article there was a long way to go before the matter was settled and there’s already been objections. First there was issues with folks who Diamond leases space from and late this afternoon Pokémon Company International submitted a response.

In the response, we learned that Alliance Entertainment wasn’t not the “successful bidder” and instead were selected. From that it sounds like someone bid higher than Alliance.

Pokémon Company International is looking for the reason as to why Alliance was chosen and “satisfies the adequate assurance requirement.” The company of the popular property and card game, one of the highest creditors to Diamond, is objecting to the terms of sale unless this information is released and satisfactory to Pokémon.”

According to earlier filings, Diamond owes the company $280,375.

Guess Diamond didn’t catch em all? The saga continues.

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