Opinion: Diamond is leaving retailers in the dark

I’ve done a lot of news coverage of Diamond’s bankruptcy and its effects on the industry. I’ve tried to report facts while adding insights based on my many years of reporting on Diamond, retailing, marketing, and the business side of comics. But this one is my own reflection on the events of the last week – and really the wild roller coaster ride since January 14th. 

On Friday the sale of Diamond’s assets closed, with Universal acquiring the assets of Alliance Game Distributors, and Ad Populum has acquiring the assets of Diamond Comic Distributors, Diamond Book Distributors, Diamond Select Toys & Collectibles, Collectible Grading Authority, and other related assets. 

Since then, we’ve heard about layoffs (confirmed on social media and from those affected in private conversations), the shutdown of Diamond Select Toys (confirmed via toy media reports), and a lack of tech support for Comic Suite, the software used by scores of comics shops to order comics. All pretty momentous stuff. 

I reached out to retailers this week to see what guidance or communication they are getting from New Diamond, and the answer is: nothing. No one knows what is happening. 

The situation became more dire yesterday, when PRH announced they would no longer be selling comics to Diamond. That means shops that order via Diamond now have no Marvel, Dark Horse, IDW or Boom in addition to no DC and no Image. 

And that’s with the deadline for products in Diamond’s May catalog due in just a few days. 

Diamond/Ad Populum DID release a statement regarding PRH, and it was kind of a cranky yawp: “It’s disappointing that after years of collaboration, Penguin Random House has abruptly cut off access to product for our loyal retailers and fans. We’re focused on actively working with other publishers to remedy the situation and minimize disruption.”

Just how you work with other publishers to remedy the situation that you no longer can supply Spider-Man and Teen-Age Mutant Ninja Turtles isn’t clear. 

What is clear is that Diamond/Ad Populum HAS been planning things. The fact that layoff notices went out immediately after the sale closing was announced shows that they had already had a plan in place for whatever it is they are doing moving forward. This deal has actually been in the works for MONTHS. And yet retailers, the people who pay the bills and sell the comics, are being kept in the dark about those plans.  

Several retailers I spoke with after the PRH news said something along the lines of “Diamond is finished.” Respectfully, that was also clear months ago. The tug of war over who would buy Diamond was shockingly humorous….but it also revealed a slow moving train wreck that was obvious to any observer. 

To me there have been a few red flags along the way that would alarm anyone. While Alliance’s account of Diamond subterfuge over losing the Wizards of the Coast account is a one sided affair, it’s a detailed enough narrative to show that concealment was a big part of all of this. The bankruptcy trustee overseeing the case filing a motion to liquidate Diamond entirely because key financial reports had not being filed was another. (That motion has been dropped, BTW, as the filings have now been made and Diamond’s assets have been sold.) The reports from Diamond employees of being kept totally in the dark is another red flag. 

I don’t know if it’s just confusion, subterfuge, or being all caught up in the Final Four and now the NBA playoffs and just too busy to release a statement, but I frankly find the lack of transparency, or at least morale boosting PR here remarkable. I can understand keeping quiet while legal proceedings were underway, and I understand Diamond’s steady drumbeat of “business will go on as usual” messaging. Except that this is not usual. And the spice and comics must flow! As one retailer told me, “May catalog deadline is this week. They need to say something.”

I mean, it’s not like selling comics and toys is important to the direct market, right?

Some publishers I’ve spoken with have had more communication with Universal, at least, and there are many rumors and assumptions going on there. But nothing on the record. Again, I understand that Universal and Ad Populum may still be getting their act together, and there are many motions and contracts still on the table. But you’d think retailers would get some kind of guidance on how to move forward with this. 

Maybe the comics situation is still too fragile, but what about Diamond Select Toys? This was a wholly owned Diamond business, and it’s been on the table this whole time. It’s true the line was uneven, but it put out some Muppet toys people liked, and the Mini-Mates line had its fans. It mattered. 

Action Figure Insider is a major toy media outlet, and founder Daniel Pickett has a long piece about the current state of Diamond Select which shows they are also in the dark:

When the announcement was made that Ad Populum would be the new owner there was hope that they would respect the 25-year brand and work of DST and let them continue to function independently, like they have done with kidrobot and Wiz Kids games.  That does not appear to be the case.

Word is many DST and GG ltd employees were notified by an email at the end of the day Friday that they had been let go.  We are not sure if anyone has been kept on but we have seen many of our friends and contacts posting about losing their jobs and looking for new opportunities.

As of this writing you are still able to order and preorder products from www.diamondselecttoys.com as well as www.gentlegiantlet.com.  There is currently no news on what the status of the products that are currently in production will be. Both companies have “fan clubs” that you pay to join.  I’m sure those members are curious if they will be getting a refund.  There have been no press released from Ad Populum or Universal Distribution at this time. I have reached out to Ad Populum with these questions but as of this writing have not heard anything back.

This is not a tariff issue as some outlets are reporting.   This is a new owner coming in and laying people off and shutting down different divisions.

Maybe the saddest thing of all is that most retailers did see the slowly moving train wreck coming their way. By the time PRH delivered their brutal gut punch, most savvy retailers had already shifted their orders to PRH or Lunar or other alternatives. But there are surely some that didn’t see the skywriting overhead, and they could be scrambling to get those May orders sorted. They deserve better. Comics shops are the lifeblood of this industry in many ways, creating and maintaining the community of fandom and readers. Diamond was the banker of the industry, and they did lots of good things for shops and publishers and readers alike. None of that should be forgotten, but the end of the story is a sad one. 

 Maybe by the time you read this, statements will have been made, or letters sent out. I certainly hope so.