Posted in: Comics, Current News | Tagged: diamond, Diamond UK
Diamond Comic Distributors sells Diamond UK for over $2 million… to… Diamond UK
As seen in court filings, Diamond Comic Distributors, Inc., the Debtors in the Diamond Chapter 11 bankruptcy case, has announced that they intend to sell Diamond UK to the management of Diamond UK for just over two million dollars. They seek court authorisation to sell the shares they own in the two bodies Comic Exporters Inc. and Comic Holdings Inc. which owns diamond US’s shares in Diamond UK, to a new company Diamond Distributors UK, Ltd, an entity formed and owned by certain members of the current UK-based management team of Diamond UK, free and clear of all liens.
Diamond UK was one of the still-profitable sides of Diamond Comic Distributors, and was part of the Universal Distribution stalking bid to buy Diamond. When that was split between Universal and As Populum after the bankruptcy auction and subsequent court cases, it was stated that Universal would buy Diamond UK separately, and not part of the auction. I understand that subsequently, there has been a lot of debate over who owns what at Diamond UK, and it may not be as simple. So instead, the Debtors are selling their shares in Diamond UK to… itself, basically, The people who have been running Diamond UK for decades, since Diamond bought it from Titan. And they can deal with it all.
The paperwork states that “Neither Alliance’s bid nor Universal’s and Ad Populum’s combined back-up bid contemplated the purchase of the Shares of Diamond UK”, though other recently released court transcript has Alliance Entertainment or AENT state that Diamond UK was included in their bid. More on that to come. And that the sale to Universal and Ad Populum, “excluding the Shares of Diamond UK. The financial firm running the bankruptcy, Raymond James, states that they “solicited interest from potential purchasers for the assets and/or for the Shares in Diamond UK. Ultimately, the Purchaser submitted a comprehensive proposal for purchasing the Shares that was the highest and best proposal received. The Debtors engaged in extensive, arm’s-length negotiations with the Purchaser to ensure that the transaction maximized the value of Diamond UK, which resulted in… the heavily-negotiated purchase price of $2,100,000.”
“The Purchaser is an entity formed by certain members of the UK-.based management team of Diamond UK, and therefore is an insider of the Debtors as that term is defined in section 101(31) of the Bankruptcy Code. None of the Debtors’ officers or directors are part of the ownership group of the newly-formed entity. At all relevant times, the Purchaser has been represented by separate counsel, and negotiations resulting in entry into the SPA have been conducted at arm’s length and in good faith by the Debtors through the Debtors’ advisors.” The new Diamond Distributors UK has already submitted a $200,000 deposit
So what does this mean for customers and vendors of Diamond UK? Well, separate from Diamond US, and demonstrably a solid and reliable business, this should mean good things. A move slowly back towards normality for British and associated comic book stores and readers. And maybe some more deals with Penguin, Lunar, Universal and others on the way. I really must buy Diamond UK’s Mike Holman a pint at the next MCM and see what’s what. That is, of course, if it is all approved by the courts.
Diamond UK logo
You can use these Diamond tabs to keep up with the latest on Bleeding Cool. Here’s a timeline if you want to catch up…
On the announcement of Chapter 11 on the 14th of January, Diamond started a 13-week bankruptcy process run by financial firm Raymond James, got financing to operate, and announced an auction for its assets.
Those assets included Diamond Comic Distribution, Alliance Gaming Distribution, Diamond Select Toys, CGA and Diamond UK
Universal Distribution was named the Stalking Horse bidder for Alliance Games and Diamond UK, which required a purchase commitment of thirty-nine million dollars, but with certain discounts and privileges for taking that position.
The auction took place, and it went late. There was food and breakfast billed for.
And Alliance Entertainment, or AENT, was named the top bidder for the assets of $72,245,000, though not for Diamond UK. This was widely announced, including by Diamond themselves.
Then we learned that a joint bid by Universal Distribution and Ad Populum came second and was named the back-up bid, with a bid of $69,130,000. With Universal getting Alliance Gaming and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
Bruce Ogilvie, AENT chairman, was invited onto a podcast with comic book retailers Dennis Barger and Jesse James after, apparently, watching my performance on the Beyond Wednesdays podcast in which he talked about AENT and Diamond.
A court hearing with the Honorable Judge Rice in Courtroom 9-D at the United States Bankruptcy Court for the District of Maryland at 10 am was intended to ensure the legality of the bid and the process.
But instead, over that weekend, the debtors declared that they had chosen the back-up bid from Universal and Ad Populum instead of AENT, despite AENT having bid more. No reason was given.Diamond’s Dick Move: the
AENT filed a lawsuit regarding this decision.
It took the bankruptcy court to reverse that decision and state that AENT, with the higher bid, had won, though they would have to withdraw their lawsuit.
AENT has terminated their winning bid and purchase.
Universal Distribution and Ad Populum were back in the running
Diamond declared “business as usual” but the courts threatened Chapter 7 over late paperwork.
AENT sued Diamond, claiming fraud
Diamond says it’s all in hand and went back to court, wanting to be owned by Universal and Ad Populum.
Sale of Diamond to Universal and Ad Populum was approved by the courts.
Though Ad Populum paid more than we thought.
Podcast blamed/credited with the current state of affairs
Diamond tells Skyrush to stop claiming they won CGA.
As part of court filings, Diamond released details for every comic store on account.
We have some finality.
Ad Populum and Universal Distribution officially acquire Diamond and related assets.
The layoffs have begun.
And continue.
Diamond Select Toys has closed
Diamond try and reassure retailers over ComicSuite
Courts withdraw Chapter 7 bankruptcy threat
We look at the future of Diamond Previews again
PRH pulls out of Diamond entirely
Well, not entirely, the UK can stay.
Hermes Press says Diamond doesn’t want to distribute their comics anymore… or anyone’s.
But Diamond pushes back on that, as they publish a new Previews.
And they assure comic book stores that everything is going to be fine. Honest.
Then send a letter to publishers which looks like it isn’t
Now they are looking for more money and longer to pay it back.
Dynamite would like half a million now, please.
Udon and Manga Classic have now cancelled all Diamond orders.
Then so did Drem Productions
And PRH starts to close their special retailer joining offer
Diamond gets a fourth wave of funding and deadlines.
Philbo Distribution launches.
Alliance Entertainment hire seven senior Diamond staffers.
Universal Distribution rumoured to be hiring Diamond staffers to enter the US market.
Massive Distribution expands within Lunar
Diamond has cancelled all their PRH orders.
There are problems with Ad Populum’s first payments to comics publishers
Ad Populum sues AENT alleging breaches of confidentiality and staff poaching.
Ad Populum still ghosting publishers.
Bankruptcy timeline revealed it began in July 2024
Diamond ends cash on delivery sales
Hermes Press hires Steve Leaf
Diamond responds to Dynamite
Diamond closes No Cost Orders, sends out reminder emails to comic book stores
Boom Studios makes layoffs.
Zenescope pulls out of Diamond.
AENT Says Diamond Claim They Poached Staff “Fails As A Matter Of Law”
It’s Claimed New Diamond Owner Said He’s “Playing Chicken With Idiots”
Mike Schimmel Talks, Under Oath, About The Diamond Comics Firings
Dynamite jumps to Lunar Distribution
Diamond takes Previews digital only
Universal Distribution to distribute in the USA as well as Canada, starting with DC Comics
Conflicting Statements Over Diamond, AENT And Ad Populum Lawsuits
This Week, There Are Only Five Comics On Diamond’s FOC
Robert Gorin, Chief Restructuring Officer Of Diamond Comics, And Geek
Titan Has Not Received Payments From Diamond Comics, Stops Supplying
Fantagraphics Says That Diamond Is Holding Their Comics Hostage
Kathy Govier, Chief Marketing & Communications Officer, Out At Diamond
Confirmed, AENT Tried To Buy Diamond In October To Avoid Bankruptcy
Dynamite Pulls Their Comics Out From Diamond Comic Distributors
Diamond Moves To Liquidate All Consigned Comics “Held Hostage”
FairSquare Graphics Calls Diamond “Thieves & Bandits”, Brings Receipts
Ultimate Comics Chain Refuses To Buy Diamond Liquidation Stock
This One Trick Means Bandai Get Their Pokémon Cards Back From Diamond?
Dren Productions Want To Know If Diamond Shipped Their Recent Comics?
Publishers Have 3 Weeks To Object To Diamond Comics’ Liquidation Plans
Emily Botica, Vice President At Diamond Comics, Is Leaving Next Week
SDCC Gossip: What’s Happening With Diamond At San Diego Comic-Con?
Universal To Offer DC Comics To US Retailers At Same Lunar Discount
Comic Publishers To File Paperwork Against Diamond Comics This Week
Diamond Pulls Its Pullbox And Cancels Its ComicSuite For Comic Shops
The Exit Interviews Of Diamond Comic Distributor Staff In Full
Andrew Aiello, Tom Derby & Ben Davis Buy CGA After Diamond Bankruptcy
Dynamite Owed A Million By Diamond, Can’t Make Payroll Next Week
Ad Populum Can’t Yet Deal Directly with Diamond Consignment Vendors
As Court Denies Dynamite Over Diamond, Comic Creators Rally Round
Paizo speaks out about their Diamond troubles
TwoMorrows Legally Objects To Diamond Bankruptcy Liquidation Of Stock
Graphitti Designs & Magma Comix File Legal Paperwork Against Diamond
Dynamite, Fantagraphics, Drawn & Quarterly Team Up Against Diamond
Sealed Transcripts Over The Diamond Comics Bankruptcy Auction, Opened
Diamond’s Reason To Reject Alliance Entertainment Was Down To One Hour
AENT Claims “The Fix was Definitely in” on Diamond Bankruptcy Auction
Diamond Comics Was Already Looking For A New Buyer Back In 2023
Mad Cave Studios makes layoffs
Dynamite Signs With Simon & Schuster For Bookstore Comics Distribution
Avatar Press Joins Anti-Diamond Liquidation Publisher Coalition
Bankruptcy Court Moves Diamond Hearings Till After San Diego Comic-Con
Image Says Diamond’s Goal Is “Stealing” $3,000,000 of Comics From Them
JPMorgan Chase Reminds Diamond Comics As To Who Gets The Money
Universal Makes DC Comics Available To US Shops Via Alliance Gaming
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