Diamond Comedian Distributors, a linchpin within the distribution of comics to comics retailers because it was based in 1982, has made a Chapter 11 chapter submitting within the U. S. Chapter Courtroom for the District of Maryland.

In response to the submitting, Diamond has obtained $41 million in debtor-in-possession financing from JP Morgan Chase that will likely be used to fund working bills and to fulfill its working capital wants. The submitting additionally states that Diamond has obtained a stalking horse bid from an affiliate of Common Distribution to amass Diamond’s Alliance Recreation Distributors division for $39 million.

Along with a proposal to purchase its Alliance enterprise, Diamond mentioned it has obtained “robust curiosity” from Common to amass Diamond UK. The way forward for different Diamond properties, together with Diamond E-book Distributors, is extra unsure, with the chapter announcement saying solely that Diamond has obtained curiosity from potential patrons.

“We stay dedicated to discovering further patrons for our companies,” mentioned Diamond president Chuck Parker, in a press release.

Because the one-time undisputed king of comics distribution to comics store, Diamond leveraged the elevated reputation in comics to broaden into new areas, together with the distribution of graphic novels to bookstores and different shops by Diamond E-book Distributors. The booming curiosity in all issues associated to comics, nevertheless, introduced in additional rivals, resulting in numerous main comedian ebook publishers leaving the distributor for such upstart rivals as Lunar Distribution.

Penguin Random Home and Simon & Schuster have additionally damaged into distributing to the direct market in addition to by the standard books channel, which has challenged Diamond E-book Distribution’s enterprise. Diamond suffered an extra blow as comics gross sales by comics retailers started to slip; Bleeding Cool estimates that between 2020 and 2023, Diamond misplaced 84% of its comics enterprise.

Regardless of defections from Diamond E-book Distribution, the corporate nonetheless stays an vital distributor for graphic novel indie presses. The chapter submitting of its dad or mum firm marks yet one more blow to the indie publishing world.

In filings launched the night of January 14, Diamond disclosed that it had present belongings starting from $50 to $100 million, with complete liabilities in the identical vary. The corporate mentioned that it’s going to have funds to pay its unsecured collectors.

The corporate’s largest creditor is Penguin Random Home, which is owed $9.2 million, whereas Disney Shopper Merchandise is owed $1.7 million. Different publishers listed among the many prime 30 collectors are Wizards of the Coast, out $914,601; Simon & Schuster, owed $600,144; Viz Media, out $421,204; Titan Publishing Group, owed $357,414; and Sq. Enix, out $314,295.

This story has been up to date with additional data.