In January, Diamond Distributors filed for bankruptcy. They were the worldâs largest distributor for comics, graphic novels and role-playing games. They had big companies as their clients: Marvel, DC, Paizo, Wizards of the Coast.
Like Walmart and Amazon, Diamond operates on a consignment basis. Stock is sent to them and stored in their warehouses. When orders came in, they shipped the materials, then paid the companies and people that sent those items to them.
After the filing, they announced they were going to sell the items in their warehouses in an auction. Their reasoning was because over 125 consignors didnât âperfect their interestâ in the consigned inventory by filling out a Uniform Commercial Code-1 statement. In other words, because the consignors didnât try to reclaim their stock, it became Diamondâs property.
A month later, they stopped honoring NCR requests. NCR = Non-Conformance Report. Itâs kind of a statement of âThis is whatâs in our contract and youâre not conforming to those conditionsâ. Diamond tells publishers they canât legally give the stock back to them.
As stated at the end of the âBattle for Inventory as Bankrupt Comics Distributor Seeks To Sell Off Consigned Merchandiseâ article on FindLaw, thereâs speculation Diamond is trying to get the consignment stock liquidated to appease its creditors, leaving smaller publishing houses without any recourse. If Diamond can do that, then those publishers will also lose sales as people go for the lower-priced liquidated option instead.
If you do a search on YouTube for Diamond Distributors, thereâs plenty of videos about what this has done to the companies and the comic book industry as a whole. One publisher Iâve been a fan and supporter of for a very long time is Studio Foglio, creator of Girl Genius, the artist for the MythAdventures books and one book called Illegal Aliens by Nick Pollota, and going all the way back to Whatâs New with Phil and Dixie in Dragon magazine.
The Diamond drama has also hit them and added to the other financial issues theyâve had this year. They created a GoFundMe fundraiser today, and as of right now, theyâre about to reach the goal they set.