The bankruptcy court in charge of the Diamond Comic Distributors, Inc. Chapter 11 bankruptcy case has approved the back-up bid for the companies, with Canadian distributor Universal Distribution acquiring the assets of Alliance Game Distributors, and NECA and WizKids parent Ad populum acquiring the assets of Diamond Comic Distributors, Diamond Book Distributors, Diamond Select Toys & Collectibles, Collectible Grading Authority, and other related assets, the companies announced. Diamond UK is separate from this process.
The sale comes after the collapse of the deal for Alliance Entertainment, Inc. to buy the companies amid litigation and allegations of fraud (see “Alliance Entertainment Sues Diamond, Again“). The joint bid by Universal and Ad Populum was the back-up bid in the auction held to sell the companies’ assets see “More on Alliance Termination, Back-up Bid“).
Representatives of Diamond, Universal, and Ad Populum released statements in conjunction with the announcement.
“We are pleased that the court has approved Universal and Ad Populum’s combined bid. Our priority during this process has been to minimize disruption to publishers, retailers, our employees, and comic and games fans everywhere,” Diamond Chief Restructuring Officer Robert Gorin said. “We are confident that this will provide the best outcome for everyone involved.”
“This expansion into the U.S. market through our acquisition of Alliance Game Distributors marks a pivotal moment for Universal Distribution,” Universal Distribution President and CEO Angelo Exarhakos said. “We’re committed to building strong, transparent partnerships and ensuring that Alliance continues to serve as a reliable and resilient link in the supply chain.”
“Ever since I was young, I’ll never forget walking through the front door of my neighborhood shop and spotting those iconic Diamond Comic boxes, each one opening to reveal my dreams and ambitions,” Ad Populum Managing Director Joel Weinshanker said. “We’re incredibly excited to build on Diamond’s remarkable legacy by bringing Ad Populum’s best-in-class sales, marketing, and distribution to the next chapter.”
The transaction still has to close. The process has been messy, so the best that can be said of this announcement is that it came quickly after the collapse of the Alliance Entertainment deal.
Source: ICv2
