After a few weeks of relatively boring filings in the Diamond Bankruptcy Case, things are heating up again because publishers want to get paid.
Hat-tip to Graphic Policy for being super up to date on the latest news. Late Tuesday they reported on a filing that hasn’t hit the main docket page yet: Dynamite Entertainment, the last remaining Diamond “exclusive” publisher, has filed a motion asking that they be paid for $509,114.21 worth of products that have shipped from 4/27/25 to 5/11/25. They are also asking for attorneys’ fees, interest, and late fees.
Dynamite is the last major publisher without a new distribution partner. CEO Nick Barrucci did comment in a story I wrote for PW:
“We’ve had conversations with each of the major distributors and will be speaking with the new owners of Diamond as we are evaluating our options as the new chapter of the comic industry begins,” said Dynamite founder and CEO Nick Barrucci in a statement to PW. “Luckily, we are well positioned to work with the multiple options of distribution in the industry. Considering the size of our company we are fortunate that we did not have to make an immediate decision on where to have our books distributed.”
It would appear that getting paid for those books is now a priority.
HOWEVER, all that money and inventory is now tied up in bankruptcy proceedings. New Diamond owners Ad Populum finally sent out a statement to publishers yesterday that made it clear that they are only responsible for sales AFTER May 15th. Anything earlier is the responsibility of the bankruptcy proceedings and, as they note, “no payment timeline has been provided to us at this time.” You can read the letter in full below.
OUCH. But all joking over the cartoonishly convoluted bankruptcy proceedings thus far aside, the unfortunate truth is that all that money was always going to be tied up in bankruptcy for months at best. In another filing reported on by Graphic Policy, Diamond has pushed back the deadline to file their plan to September 11. OUCH OUCH.
In kind of better news, (Graphic Policy again) Diamond now only owes Chase Bank (the source of their DIP (debtor in possession) financing) $5.8 million. That is a lot less than the $41 million they borrowed from Chase for their original DIP when they filed for bankruptcy back on January 14th. I’m not entirely clear on whether this is a new loan or not. But Chase is a secured lender – comics publishers are unsecured. A filing on May 1st suggests that the DIP loan is being paid off. Which is good news for publishers, since they will only get their settlements after secured creditors are paid off.
Here’s that letter from Diamond to publishers that went out yesterday:
Important Update on Outstanding Invoices and Future Payments
Dear Diamond Consignment Vendor:
As we navigate the transition in ownership, we wanted to address questions we’ve received regarding outstanding invoices and future payment expectations.
Bankruptcy Estate Responsible for Invoicing Related to All Sales Dated May 15 or Earlier
Invoices dated May 15 and earlier fall under the responsibility of the bankruptcy estate. These obligations were incurred during the Chapter 11 proceedings and pertain to consignment inventory held in our warehouse. We understand the estate is reviewing these outstanding amounts; however, no payment timeline has been provided to us at this time.
New Ownership Responsible for Invoicing Related to All Sales Activity May 16 Onward
These obligations are fully separate from the bankruptcy estate and are actively being processed and paid under normal operating procedures. Our goal is to rebuild trust through action and consistency moving forward.
The Difference Between the Bankruptcy Estate and the New Organization
We understand that the distinction between the bankruptcy estate and the new organization may be confusing. To clarify: the bankruptcy estate is a separate legal entity responsible for settling obligations incurred prior to the May 15 sale.
Diamond, now operating under the ownership of Ad Populum, is a new entity and the new organization, responsible for all obligations from May 16 onward. Our focus is on moving forward with a clean slate and restoring stability for our partners.
We are committed to maintaining strong, ongoing relationships with our vendor partners. If you have questions about specific invoices or need help determining which payments fall under which period, please contact your AP contact.
Thank you for your patience as we work through this transition.
In a letter to retailers last week, Ad Populum assured them that they were working things out:
Dear Diamond Customer:
As you know, Diamond Comic Distributors is now part of the Ad Populum family. This marks a new beginning with a future of greatly enhanced product offerings, as well as a time of transition. Naturally, it also brings with it questions.
Many decisions are still taking shape, and we’re actively working through what this next chapter should look like. That means some near-term uncertainty. This is a complex process, and we’re focused on moving forward with intention, making decisions to best position us for long-term stability. That said, we do want to address some of the more immediate questions on your mind:
If you place an order with us, will you receive it?
Yes. Our order processing and fulfillment operations remain active, and fulfilling your orders reliably remains a top priority.
What about your PRH orders?
We are pausing PRH orders for product with an on-sale date after June 25 while we work with publishers to resolve the disruption and provide clear guidance.
What about comics in general?
We’re working with publishers and vendors to ensure continuity across the categories that matter most to your business. We will share updates as more details take shape. In the meantime, the Support Center on the Retailer Services Website remains the best place to go with any questions or concerns. Thank you for your partnership and your patience as we work to shape the future of Diamond together.
But in a note on the Diamond website they noted that phone help would no longer be available:
Please be advised that, while Diamond’s Retailer Services team is responding to customer emails and support tickets Monday-Friday from 9:00 AM-6:00 PM ET, our Retailer Services phone queue will be unavailable during the transition to Ad Populum.
For your convenience, we suggest that you submit a ticket via the Support Center of the Retailer Services Website.
In short…more to come on all of this.
As a local comic shop that has been dealing with Diamond for a few years, we are not happy with anything they are currently doing. From the unusual invoicing which is now bulk invoicing over multiple months. What I mean here is we used to get invoices per order now they don’t invoice until they they have a big amount. For instance they billed us for all of April and May at once making it near impossible to pay.
Service is and has been horrendous since it appears the same people are still working there. We pay for orders and they do not arrive for 2-3 weeks after new comic release day. More now than ever orders are arriving mostly damaged and replacements are not arriving. Their finance team makes no effort to help with anything related to that. Our account manager has not spoken with me since becoming our account manager since early last year. Zero communication from Ms. Orlando the entire time. When I asked about our orders and invoices missing she responded with a generic response with instructions on how to find our invoices on our own. Even after I explained that the invoice location was missing and we couldn’t see items anymore she ignored us.
I sent a formal letter yesterday 05/28/2025 advising Diamond that they cancel all pending orders due to the unusual invoicing and the horrible lack of professional conduct when packing items. Receiving and ordering almost 2-3 weeks later with more than 50% damaged is unacceptable and for that reason we would no longer be conducting business with them. There has been zero response from anyone at Diamond nor any attempt to rectify any of our complaints.