What is to become of the $47 million worth of consignment inventory still held at the Olive Branch warehouse in the wake of Diamond’s bankruptcy? 15 publishers have reached a settlement to try to get their stuff back, but as we learned this week, Sparkle Pop, current renter of the space, has no intention of just handing it over to publishers.
Another option has arisen, reported at ICv2 and privately related to The Beat: Pop King, an animation art dealer, has offered to buy the inventory and pick it up.
In an offer letter to 140 publishers whose inventory was stored at the warehouse, Pop King has offered to purchase the inventory and manage the process of removing it from Sparkle Pop’s warehouse – provided that it is legally feasible to do so, which as we know, is not a sure thing.
Pop King is run by Steve Schanes, co-founder of 80s indie comics publisher and distributor Pacific Comics; his brother, Bill Schanes, who served as a VP at Diamond for many years, is also involved in this offer.
Pop King has been a wholesaler in the popular-culture merchandise business for more than 25 years. We have extensive experience purchasing comic books, graphic novels, collectibles, and other inventory from leading publishers and suppliers. Our fulfillment center is currently 52,000 square feet. Over the last 25 years, Pop King has purchased over 50 million comic books, trade paperbacks, hard covers, deluxe books, color guides, animation art, toys, games, and all different types of licensed goods
Our objective is to make the process as straightforward as possible for you.
Pop King is also available for hire to retrieve the inventory and move it to a local facility.
As part of the potential massive inventory movement, Pop King is securing a warehouse within a few miles of the Sparkle Pop warehouse. We’ve engaged a operations veteran with decades of experience who lives close by to the Sparkle Pop warehouse, and he will be on site coordinating the inventory transfer to the new regional warehouse, including a full physical inventory count, comparing it to what Sparkle Pop claims they are releasing to Pop King.
As an aside, my understanding is that the area around Olive Branch is apparently home to a lot of warehouses. I have been in contact with another distribution type company that has also offered nearby warehouse space to store inventory. So it seems that storage options are springing up.
All that is only IF the inventory can be extracted from Sparkle Pop’s warehouse. And with a hearing set for October 6th to go over both Chase Bank’s interests and the Sparkle Pop objection, it looks like we have a ways to go for that.
Will anyone take Pop King up on their offer? We’ll see what happens.
For those of you who came in late – god help you – Diamond Comic Distributors declared Chapter 11 bankruptcy back in January of 2025, and put its assets up for auction. After a wild series of events involving alleged subterfuge and shocking revelations, Sparkle Pop, a new company that is a subsidiary of Ad Populum (owner of NECA, Whiz Kids, Enesco and many more collectible companies) emerged as the buyer of the inventory. They also took over the lease of Diamond’s warehouse in Olive Branch, MS, starting in May 2025. But since then 12 months of legal wrangling has slogged on, with the former bankruptcy trustee announcing a plan to sell consignment inventory to pay off Diamond’s debts, publishers fighting back to prove they own the inventory, and Sparkle Pop “accidentally” selling some of the contested inventory when they weren’t supposed to. The bankruptcy was also converted to a Chapter 7, meaning all the remaining assets would be liquidated. Last month a settlement between 15 publishers and the estate was reached, but Sparkle Pop does not want to participate in that settlement.
Got that? While most publishers have moved on from the turmoil, there is still a $47 million football being kicked around…and with that much money involved, you can bet the squabbling over who gets control will continue.
