Diamond Comics Distributors, one of the largest companies involved in purchasing graphic novels at physical retailers, is filing for bankruptcy and scaling back its business as the industry prepares for a new wave of economic challenges.
In a letter sent out to comic book retailers and publishers today, Diamond president Chuck Parker announced that the company has filed for Chapter 11 Bankruptcy and plans to sell its Alliance Game Distributors division to Universal to “protect the most vital aspects of our business.”
“This decision was not made lightly and I understand that this news may be as difficult to hear as it is for me to share,” Parker explained. “Diamond’s leadership team and I have worked tirelessly to avoid this outcome, but the financial challenges we face have left us no other viable option.”
Founded in 1982 by Stephen A. Geppi (who still serves as CEO), Diamond became a heavyweight in the comics business by landing a series of exclusive distribution deals with various publishers such as DC, Marvel, and Image. For decades, Diamond – who also publishes his Previews magazine that showcases upcoming titles) was instrumental in bringing comics to market and played a huge role in determining the success of a book due to the way in which Previews influenced retailers’ orders.
News of Diamond’s bankruptcy comes weeks after the company suddenly closed its flagship fulfillment center in Plattsburgh, New Yorkwhich the company’s vice president of retail services, Chris Powell, described as a necessary step to address long-standing operational problems that made its distribution process unsustainable.
“Ideally, the changes would have been planned and tested while we continued to operate as we had in Plattsburgh,” Powell said. “Since that is no longer an option, we must make changes and test them with live data and shipping while trying to minimize the impact on retailers.”
In recent years, many of the Diamond biggest name publishing partners I have dropped them like the company did not meet expected delivery times to retailers, leaving stores struggling to meet customer demand. Given the difficult time Diamond has been going through lately, the announcement that it will file for bankruptcy is not entirely surprising. It seems like the company’s leadership wants to stay in the comics game as long as possible, but as it stands now, it seems like all Diamond can really do is stop the bleeding as much as he can.