Diamond Comics, one of the world's largest manga wholesalers, files for bankruptcy

Diamond Comics is an American comics distributor that transports comics, graphic novels, toys, games, and more from publishers to retailers. Through expansion and acquisitions, the company was once powerful enough to dominate the comics wholesale system, but on January 14, 2025, it filed forChapter 11 bankruptcy .

Diamond Comic Distributors Files Voluntary Petition for Relief Under Chapter 11 - Diamond Comics
https://www.diamondcomics.com/Article/279611-Diamond-Comic-Distributors-Files-Voluntary-Petition-for-Relief-Under-Chapter-11

Comics distributor Diamond is filing for bankruptcy - The Verge
https://www.theverge.com/2025/1/14/24343544/diamond-comics-bankruptcy

Diamond Comics was founded in 1982 and expanded by acquiring many other middlemen. In 1991, it entered the UK market and acquired major UK distributors, almost monopolizing the UK comic market. In 1995, it gained exclusive contracts with DC Comics and Valiant Comics , and in 1996, it acquired its biggest US rival, Capital City , which led to an exclusive contract with Marvel Comics in 1997, and it was described as 'the sole king of comic distribution.'

However, the distribution agreement was terminated in 2020 by DC Comics, which aimed to strengthen its retail network and expand its fan base. Marvel Comics also announced that it would transfer both its comics and graphic novels to Penguin Random House in 2021. However, even after the termination of the exclusive agreement, Diamond Comics will function as a wholesaler rather than a distributor.

In October 2024, it was reported that Diamond Comics suddenly closed its main distribution center in New York state. Chris Powell, vice president of retail services at Diamond Comics, said, 'This is a necessary step to address long-standing operational issues that have made the company's distribution process unsustainable. Ideally, we would have planned and tested the changes while continuing to operate as usual. However, that is no longer an option, so we must make the changes and test them with actual data and shipments while minimizing the impact to retailers.'

In response to these changes, Diamond Comics announced plans to file for Chapter 11 bankruptcy protection on January 14, 2025, to downsize its business and sell some of its divisions. Below is a letter sent by Diamond Comics, made public by Ryan Higgins, owner of the California-based bookstore Comics Conspiracy .

And there it is.

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— Ryan Higgins ( @ryanhiggins.bsky.social ) January 15, 2025 0:18

According to an official release, Diamond Comics received a bid of $39 million from an affiliate of Universal Distribution, and has received a loan of up to $41 million from investment bank JP Morgan Chase, which will be used for working capital to cover operating expenses and meet obligations to stakeholders and suppliers after the bankruptcy filing.

'This decision was not made lightly and the news is difficult for me to hear,' explained Diamond Comics president Chuck Parker. 'Diamond's management and I worked tirelessly to avoid this outcome, but the financial challenges we face have left us with no other viable options.'

Diamond Comics has previously been terminated by several major publishing partners due to its failure to meet retailer delivery deadlines and store demands. Foreign media The Verge states, 'Given the tough situation Diamond Comics has faced recently, the announcement of bankruptcy filing is not at all surprising. The company's management seems keen to stay in the comics industry for as long as possible, but in the current situation, it seems that all Diamond Comics can do is stop the bleeding as much as possible.'