Diamond Comics Distributors filed for Chapter 11 bankruptcy protection today. They also announced that they were selling off pieces of their large company - Alliance Games and Diamond UK were two mentioned today with others likely to happen soon.
What does this mean for the comic book business? Hard to tell for sure. Diamond has been losing pieces of the distribution business for the last five years and right now they're a comparatively minor player in the game. However, when it comes to small press comics Diamond is one of the few viable nationwide distribution options.
Remember that a Chapter 11 filing indicates an intent for the business to continue after a reorganization.
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Just out of curiousity, I went back to the "What Comic Books Have You Read Today?" thread to ascertain how many comics I read in the month of December by company. This list includes periodical comics only, and DC will be temporarily artificially over-represented due to their "All In" initiative. Here, alphabetically, are the results.
That's a pretty eclectic mix of companies, if I do say so myself. the big surprise (for me) is how few Marvel titles I'm buying these days. (Also, wow... that's a lot of DCs!) One of the Marvel titles was Captain America, but #16 was Straczynski's last issue and mine as well. The other is Deadpool Team-Up, a mini-series, which I bought just to ridicule. As soon as that is completed I will be buying no Marvel comics whatsoever. DC is likely to be in the same boat as soon as the "All In" dust clears, but Marvel and DC aren't really the companies I'm worried about; it's all the others.
Distribution:
Massive/Whatnot has also mentioned through Bleeding Cool how unlikely it is that they will get paid by Diamond for material already delivered, and are worried about that. They say they are breaking their exclusive deal with Diamond, and will distribute through other channels (they don't say who) until Diamond is out of bankruptcy. They say their TPBs will now be distributed through Simon and Schuster.
I know it was a different time and a different system, but I can't help but remember that it was distribution issues that killed EC and Blazing Combat, and crippled Atlas/Marvel for 10 years. Other issues led up to that, but it was distribution that was the enforcement arm.
Other issues led up to that, but it was distribution that was the enforcement arm.
That makes sense. You can make the best product in the world, but if you can't get it to consumers, you're out of luck.
IIRC, the DC Implosion of the 1970s was in part a result of distribution issues due to weather problems.
Diamond's Chapter 11 might put IDW out of business. According to a Bleeding Cool report:
"IDW Media Holdings' just-released annual investor's report includes a section that expresses 'substantial doubt' on their 'ability to continue as a going concern,' and it's all down to the uncertainty created by Diamond Comic Distributors issuing Chapter 11 bankruptcy proceedings. ... It appears that Penguin Random House intends to pass on any unpaid debt they have from Diamond to IDW and, possibly, the other publishers as well."
Here's the FULL STORY.
I should note that I've been posting about IDW's financial problems for a while. They've been posting in the red every quarter since they expanded into movies, TV and games several years ago. Their investors seemed content to give them the financial rope to turn the ship around ... until now, at least.
Sad, but very believable.
"Bleeding Cool has reprinted a release from Diamond to retailers telling them that their distribution of Marvel, Dark Horse, IDW and many manga titles will be delayed a week."
"The owner of my LCS told me this today [Jan 22], not just for Jan 29 but for the foreseeable future."
On January 29 my LCS received two weeks' worth of shipments, so as of now at least, Diamond is caught up.
Whoa, there's a lot more at Bleeding Cool on this topic.
"Mad Cave Studios and Vault Comics have told Diamond Comic Distributors that they will not be distributed by Diamond any more. Both publishers have distribution deals with Lunar Distribution non-exclusively, as well as Diamond, but they now appear to be going all-in with Lunar." STORY.
"Titan Comics Joins Diamond Bankruptcy Committee of Unsecured Creditors" I'm not really sure what this means. STORY.
"IDW Cancels Issues Of The Hunger & The Dusk, Switches To Graphic Novel" This is Vol. 2, a six-issue series that has three issues out already. Volume 1 is already out, also. What do you think the odds are that Hunger & Dusk Vol. 2 will ever come out? STORY.
I'm talking well out of my competence zone, but it seems to me that a "Bankrupcy Committee of Unsecured Creditors" is a formal part of the bankrupcy process that attempts to give debtors creditors some leverage to try and be paid for some of what they are entitled to.
Diamond is bound by law to present some form of plan for relieving its own finances and hopefully remain in business. This Committee has a voice in judging how much sense that plan makes. It also has some oversight and counseling powers over Diamond and, perhaps significantly, it can formally request that the Chapter 11 Bankrupcy be converted into a Chapter 7 Bankrupcy, which is the form that does not have a way for Diamond to remain in business and instead has as a goal selling the assets in order to pay as much as the business debts as possible.
That means that Titan Comics, along with the other Committee Members, now has considerable power to decide whether and how Diamond should be kept running. Among Titan, Simon & Schuster and Little Buddy Toys they presumably have well over a million and half dollars in debts from Diamond to collect - and that is after the secured creditors are paid. I have to imagine that they will consider carefully whether it is best to cut their losses from Diamond.
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