Diamond Comics Distributors, one of the largest distributors of English-language comics in the world and the parent company of Collectible Grading Authority, announced it had filed for Chapter 11 Bankruptcy on Tuesday.
The distributor was founded in 1982 by Stephen Geppi and expanded rapidly, illustrated by anti-trust allegations from the Department of Justice in 1997, which ultimately concluded without legal action.
In addition to its status as a major player in the comic book ecosystem, in 2021 the company acquired CGA, which operates the top toy authenticator (AFA) and one of the top video game authenticators (VGA).
Diamond faced challenges during the COVID-19 pandemic, announcing delays in shipments that caused key partners, such as DC Comics and Marvel, to discontinue their distribution agreements in the following years.
In a letter to its customers, shared widely on social media, company president Chuck Parker wrote the step to file for bankruptcy was “intended to stabilize our financial foundation and protect the most vital aspects of our business,” saying the move will allow the company to restructure and address its “financial obligations.”
Parker added the sale of Diamond Comic Distributors’ key assets was likely, and the company had already received a commitment from Universal Distribution to purchase subsidiaries Alliance Game Distributors and Diamond UK.
Diamond has received up to $41 million in debtor-in-possession financing from JP Morgan Chase that will be used to fund operating expenses and meet obligations moving forward.
The company said in a statement it was “actively pursuing offers for, and has received interest from potential purchases for” companies under its umbrella including CGA.
Will Stern is a reporter and editor for cllct.