After last week’s absolute blockbuster of a week, things have calmed down in the Diamond Bankruptcy. No more shock filings, but just more paperwork. More COSTLY paperwork.
• Milton Griepp reports that DIAMOND BANKRUPTCY FEES MOUNT. Indeed many filings follow the drip-drip-splash of just how costly all the lawyers and consultants are in this matter: $537,384 for Diamond attorneys Saul Ewing, $498,286 for restructuring consultants Getzler Henrich and so on. The total fees thus far run to $4.57 million through the end of March. All money that will not be going to creditors.
• Diamond has at last begun to file its monthly financial reports, as Brett Schenker notes. So far we have January for Diamond Comics, Diamond Select and Comic Holdings and Comics Experters, the last two the twin holding companies that own Diamond UK. To be honest, not too much that stands out here. Via Graphic Policy:
Key takeaways:
Current employees: 473 (though 478 at one point)
Disbursements: $13,683,765
Ending equity/net worth: $2,527,866
Profit: $2,018,090
Some of the number do seem notable, although the context is not clear. For instance, Diamond Select Toys has $1428 cash on hand. This summary page for Diamond Comics in January gives us a snapshot:
That freight income line may raise some grim smiles. Here’s the entire filing:
• Also from Graphic Policy: a letter from a former Diamond employee urging the new owners to consider employee treatment:
The largest problem at the company is the very small pay scale for hourly employees beneath the management level. Though I worked there for nine years, and had a positive reputation with retailers and publishers, when I left I was making below $35k a year; nowhere near enough to survive in an expensive state like Maryland. Efforts to advocate for myself fell on deaf ears. During my brand management years, when I asked what it would take to receive more than a 3% raise, I was told that I would need to be assigned larger publishers. When the opportunity arose, Diamond decided to hire outside the company without giving existing Brand Managers the opportunity to apply for a higher position, effectively trapping them at lower pay scales for the foreseeable future.
• Brigid Alverson has a summary of the latest developments that you may enjoy just to see it all laid out in a compelling narrative.
• In yet another weird cul-de-sac of this matter, Skyrush Marketing, a digital marketing company that was yet another bidder in the assets auction, was also another company that sent out a preemptive triumphal press release claiming that they were the high bidder for CGA, Diamond’s collectibles grading arm. However CGA went as part of the kit and kaboodle to Ad Populum and Diamond shut down this claim.
• The next big date is May 14th, which has been set as the closing date for the purchase by Universal Distribution and Ad Populum/Sparkle Pop.
• LOTS AND LOTS OF QUESTIONS REMAIN. Chief among them: who is actually going to take over Diamond’s comics distribution business. Universal wants to do it but Sparkle Pop got it in the sale. Just how and why this happened has not been explained. Both Universal and Sparkle Pop have remained silent about their plans, which is, honestly, quite a sensible thing to do while all these legal maneuverings are taking place. And of course, maybe the biggest question of all, how much money are creditors going to get when all the debts and fees are paid out?
Folks I’ve spoken to are just drained by this whole process. Maybe just taking a wait and see attitude and tending to your own fields is the only sensible course of action for now.
I read the anonymous Diamond letter posted by Graphic Policy. While I do not know for certain who wrote it, I have a very good idea. If it is who I think it is, I knew and genuinely liked the writer, and they were worth far more to Diamond than that pittance of pay. I hope they’re doing well.