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

Posted on April 5, 2025 by Brett

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

Posted on April 4, 2025 by Brett

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

Posted on April 3, 2025 by Brett

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

Posted on April 3, 2025 by Brett

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

Posted on March 26, 2025 by Brett

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

Posted on March 25, 2025 by Brett

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.

Alliance Entertainment acquires Diamond Comic Distributors in bankruptcy bid

Posted on March 25, 2025 by Brett

After a day of no solid news, this morning came word that Diamond Comic Distributors potentially has new owners, Alliance Entertainment. Alliance Entertainment is a distributor and wholesaler focused on music, movies, video games, electronics, arcades, and collectibles. It has acquired “substantially all of the assets of Diamond Comic Distributors, Inc.”

Alliance Entertainment’s acquisition still needs to be approved by a Bankruptcy Court. The announcement from Alliance Entertainment teases the purchase is for most, if not all, of the entities up for sale including Diamond Comic Distributors (U.S.), Alliance Game Distributors, and Collectible Grading Authority. We’re assuming Diamond Select Toys and other entities not mentioned are included as well until news says otherwise. Alliance Game Distributors was mentioned as being purchased by Universal Distribution, but with this announcement that doesn’t seem to be the case. Alliance Entertainment in their announcement were careful to highlight Diamond US, so it’s likely Universal Distribution will still purchase Diamond UK.

Also mentioned is that Diamond Comic Distributors (U.S.), Alliance Game Distributors, and Collectible Grading Authority support over 5,000 retail storefronts and that Alliance Game Distributors handles over 3,000 hobby retailers. Diamond Comic Distributors (U.S.) is highlighted in that it fulfills comics for 2,500+ comic shops.

The news is good for multiple reasons:

Alliance Entertainment is a known distribution entity that has been around for 15 years, that seems to actually focus on trends on consumer purchasing
With their current distribution abilities, comics might be available through more channels and retailers through this acquisition
Creditors may be paid what they’re owed, or at least more than if Diamond completely folded

While there is still a lot to do before this is settled, and the devil in the details, this is potentially good news all around for the comic industry.

When I say there’s a long way to go, there is a lot more as far as approval, objections, and who gets paid what. Today, for example, there was an objection by Diamond’s landlords for the approving the sale of all of Diamond’s assets fee and clear of liens, claims, interests, and encumbrances, throwing a wrench into current leases.