Diamond Reaches Settlement to Return Publishers’ Inventory
Diamond Comic Distributors' trustee has reached a settlement with publishers to return inventory held in a Mississippi warehouse.Summary
After months of litigation following Diamond Comic Distributors' January 2025 bankruptcy, a legal agreement has been reached to return publishers' inventory held in a Mississippi warehouse. The group of publishers involved includes Ablaze, American Mythology, Avatar Press, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Living the Line, Paizo, Udon, Zenescope, Boom, and Dynamite. The inventory, which includes comics and graphic novels, has been managed by Sparkle Pop, a subsidiary of Ad Populum, since the acquisition of Diamond.
The dispute arose when Diamond attempted to sell the inventory to cover legal debts, a move criticized by publishers like Fantagraphics as "an act of piracy" due to fears of market devaluation. Following negotiations led by trustee Morgan W. Fisher, the new agreement allows publishers to reclaim their stock. To facilitate this, publishers will forfeit $619,410 in fees but will receive a $50,000 payment.
Under the terms, publishers may designate three representatives to identify their remaining inventory at the warehouse. Once identified, they have 30 days to collect the items or order their destruction; otherwise, the inventory will be considered abandoned by Sparkle Pop. Consequently, the publishers have terminated all remaining distribution agreements with Diamond.
(Source：Publishers Weekly)