Iconic comic and graphic novel company Diamond Comic Distributors announced yesterday that it has filed for Chapter 11 bankruptcy in the district of Maryland. 

Based on court documents, pop culture industry news site ICv2 is reporting that the 43-year-old distributor owes between US$50 million and US$100 million across all divisions of its business to more than 30 unsecured creditors, including Penguin Random House (US$9.2 million), Bandai Namco (US$4.35 million) and NECA (US$2.7 million). 

This bankruptcy filing comes on the heels of the company losing several major publishing clients in recent years; DC struck an exclusive deal with Indiana’s Lunar Distribution in 2020, and Marvel and IDW moved to Penguin the following year.

As part of an ongoing restructuring plan, Diamond has a contract in place with JP Morgan Chase for up to US$41 million in debtor-in-possession (DIP) financing to fund its operating expenses. Current clients include Image Comics (Transformers, G.I. Joe, Spawn), Archie Comics (Betty and Veronica, Riverdale, Salem) and Titan Comics (PREVIEWS catalogue, Rebel Moon) 

Meanwhile, the company is in active talks to sell off all of its operating units, revealing that Canada’s Universal Distribution has signed a non-binding letter of intent to acquire Diamond UK for an undisclosed amount, as well as making a US$39-million stalking horse bid for Alliance Game Distributors (board games and trading cards). Other divisions up for grabs include Diamond Book Distributors (graphic novel distribution channels), Collectible Grading Authority (comic issue and graphic novel grading) and Diamond Select Toys (action figures and collectibles).