More Diamond Shenanigans

 

The Diamond Comic Distribution bankruptcy saga just took another interesting turn, at least based on the daily emails the company is sending (See “Diamond Bankruptcy Continues to Rack Up Fees”).  Emails like their “New to Order” come from Diamond Comic Distributors and have the following address at the bottom:

Diamond Comic Distributors, Inc. 10150 York Road, Suite 300 Hunt Valley, MD 21030

However, the Diamond Daily email is coming from Diamond Comic Distributors II, using the same email address but has the following mailing address:

Diamond Comic Distributors II, LLC.

10150 York Road, Suite 300

Hunt Valley, MD 21030

Same mailing address but it appears Diamond has quietly created a second LLC through which to send some of its correspondence. I figure some legal reason for it. Just one more small, strange twist in the continuing story.

Comics

 all of this week's comics hit the shelves in time for New Comic Book Day.  Hopefully this is a trend that will continue. Not sure what will happen with Diamond's bankruptcy filing though and we will not know what is happening with it until later in the month.

Diamond Files Bankruptcy

 Diamond Comics, our supplier for our comics except for Image and DC, filed for bankruptcy today. The company's FAQ list should answer most of the questions you might have:

1. Why did Diamond Comic Distributors decide to file for Chapter 11?

The unexpected loss of certain exclusive publisher relationships, compounded by an overall contraction in consumer spending, increased inflation, and a loss of margin on key print product lines contributed to this decision. After exploring all available options, Diamond determined that filing for Chapter 11 is the best course of action to restructure its operations and secure the most favorable outcome for all stakeholders.

2. What were the contributing factors in the industry that led to this decision?

Post-pandemic, the comic book industry at large has seen a decrease in consumer activity paired with rising operating costs, and Diamond is no exception. Shrinking margins, growing expenses, and a decline in sales, as well as the desire to achieve the best possible outcome for the majority of our vendors, customers, and employees all contributed to this decision.

3. What is Chapter 11? Does this mean the company is closing?

A Chapter 11 filing is generally an action a company takes to protect its ongoing business from financial claims while it continues operations. During Chapter 11 proceedings, the company typically reorganizes financially and manages its operations to best meet the claims of those to whom it owes money. Diamond has received funding from its lender to enable it to meet post-filing obligations and continue to operate while it goes through this process.

4. Is there another company taking over?

As part of the restructuring process, the Company has received a stalking horse bid from Universal Distribution for Alliance Game Distributors and signed a letter of intent with the same company to buy Diamond UK. We are also actively pursuing offers for additional Diamond Comic Distributors assets and lines of business, including our comic, toy and collectible distribution, Diamond Book Distributors, Collectible Grading Authority, and Diamond Select Toys.

5. How will I be impacted as a customer?

Diamond Comic Distributors will continue to fill orders and operating business as usual during this process. We are currently in discussions with companies inside and outside of our industries to acquire parts of Diamond. Our goal is to minimize any potential impact on retailers and ensure the continued, uninterrupted flow of products.

According to our customary practice, we will continue to invoice once a product ships.

Product cannot be returned once it has been shipped except in the case of publisher return programs and our standard defective product replacement policy.

6. What happens to my pending orders? How can I confirm their status?

Pending orders will be processed as usual unless otherwise communicated. You can confirm the status of your pending orders by visiting the Reports section of the Retailer Services Website. This section will continue to provide up-to-date information on Orders, Shipments, and Invoices.

7. Will there be any changes to how credits or refunds will be handled?

Credits for returns will continue to be processed on the usual schedule. If you have prepay credit terms, orders for products that are canceled will be credited to your account. No cash refunds will be issued and all credits must be used toward future purchases.

8. Should I continue paying my outstanding invoices to Diamond?

Yes, all outstanding invoices, back debt payments, and payment plans remain due and payable under the usual terms and schedule and should be paid. For specific questions regarding your account, please open a support ticket on the Retailer Services Website.

9. Will my retailer discount tiers or terms (e.g., payment terms, credit limits) remain unchanged during this process?

At this time, all credit terms and retailer discount tiers remain unchanged.

10. Will Diamond still facilitate Free Comic Book Day this year? If not, are there contingency plans?

At this time, Diamond remains committed to supporting Free Comic Book Day (FCBD) as planned. We understand the importance of this event for retailers and fans alike and will be working closely with participating publishers to ensure the event proceeds as smoothly as possible.

However, as we navigate the restructuring process, there may be changes or adjustments. In the event Diamond is unable to fully facilitate FCBD, we will be actively exploring contingency plans to ensure that stores can still receive materials and participate in this critical event.

Updates will be provided as more details become available.

11. Are my Alliance Game Distributors orders impacted?

Alliance Game Distributors will continue operating as usual throughout this process. Your current and future orders with Alliance will not be impacted.

13. What will happen with ComicSuite and Pullbox?

Retailers using ComicSuite and / or Pullbox will receive further communication about these tools as more information becomes available.

14. What will happen with the PREVIEWS catalog?

As this process moves forward, we will announce any changes to PREVIEWS as more information is available.

Statement from Diamond Comics

 statement from Diamond Comics, who supplies most of our comics from Marvel, Boom, IDW, etc. regarding the delays in shipments over the past months:

DCD Customer Status Update for January 7 from Chris Powell, Chief Sales & Service Officer

I hope you've entered the new year safe and healthy, ready to tackle 2025. Over the holidays, our focus was on making as much improvement on the issue of timeliness as possible. Since there was no truly new information to share in that period, I was pleased to receive a status update from our Operations team yesterday and to learn of some forward momentum going into this new week.

This week, nearly all US retailers were scheduled to receive their product by Wednesday. That's particularly good news considering we lost a day each week due to the holidays. There are some pockets of disruption due to a winter storm, but the shipments leaving our warehouse were on a better pace than they had been in December.

This still does not meet our internal goals or retailers' expectations, but we continue to work with the Operations teams to identify changes that may allow us to ship products more consistently.

Our Distribution Process

Following the recent changes, many of you have had questions about why things haven't shipped from the distribution center as quickly as we or you need them to.

Periodicals that we don't receive directly from the various printers (periodicals from publishers who sell to us through other wholesalers) arrive to us over the weekend or as late as Monday for the following week's releases. We deal with a much wider selection of products, both print and non-print, than other distributors and that leads to delayed or misrouted deliveries that must be dealt with before the picking and packing of orders can begin.

Retailers who are furthest way from the center are picked first, then the next furthest, then the next, etc. As they are picked, they are packed and then handed off to trucking companies for delivery. Then the process begins again ...

This process is not working as it needs to, obviously, but modifying it takes time. Ideally, changes would have been planned and tested while we continued to operate as we had been at Plattsburgh. With that no longer an option, we must make changes and test them with live data and shipments while trying to minimize the impact on retailers.

We are considering many options, and they will almost certainly involve additional changes from the way we have operated in the past. I assure you, this is still the primary focus for our Operations, Purchasing, and Retailer Services teams and we will keep you in the loop as there are further developments.

Thank You

We appreciate how difficult these changes have been for our retailer partners, and wish very much that we did not have to go through this with you at the busiest time of year. Your patience and positive attitudes throughout this process are very much appreciated and I will continue to reach out as there are changes or progress to share with you.

Final Order Cuttoff

You may read us, and other stores selling comic books,  referring to something called Final Order Cutoff. In the comic book industry, there are initial orders and then Final Order Cutoff. Initial orders are the preliminary orders stores put in with Diamond Comics, the primary comic distributor. If you order any toys, magazines, manga or anything pretty much not a comic from the primary comic publishers (Marvel, DC, Image, Dynamite, Vault, etc.) we need to know by the date of initial order submission, which is generally the last Thursday of the month. Diamond then puts in orders on all of the non-comic items based on the orders we submit and will sometimes, but not always, order extra of an item. For example, magazines are usually ordered based on the numbers submitted at the initial order.

Final Order Cutoff takes place about 3 weeks before comics and graphic novels from the major publishers arrive in the store. This is the last date we can guarantee to get books from them. After these orders are submitted, print runs for the books are set. The publishers may print extra copies, although Marvel generally does not. If they do, we can order books after the FOC date but in many cases, those orders will be canceled.

So in short, for anything except comics from the major publishers, we need your orders in by the due date for the Previews catalog, two months, at least, before expected release. For comics and graphic novels from the "major" publishers, we need your orders in at least 3 weeks before release date to guarantee the books for you.

Comic Shipments Delayed

We just received notice from our comic supplier that tomorrow's books, hitting the rack on March 25, will be the last new books for the immediate future, i.e. unless we hear otherwise, no new books on April 1. Diamond wants to keep their staff safe from the Covid-19 virus and we agree with them.

What does this mean to you? We will post our Comics from the Castle Video tomorrow and pull any books you have subscribed to as well as any others you want, as long as they have not been spoken for already. Then we will either

A. hold your books until the shelter at home gets lifted, currently planned for April 7

b. Deliver your books curbside or to your home. If curbside, just call the store and pay with a credit card or Paypal, then let us know when you get here and we will deliver them contactless to your car. If your total order is over $25, we will gladly bring them to your house.

Next week, look at this as an opportunity to try a book that always interested you. We will also make up $5 grab bags, 5 of the same type of book (batman, X-men, independent etc) in a blind bag, so here is a chance to try something new very inexpensively.

We will all get through this. Hopefully sooner than later.

Hasting's Liquidating

Looks as if you better use those Hasting's gift cards soon.  According to this report, Hasting's plans to shutter all 120 stores by October. A good chunk of the company's problems came from attention to use a cookie cutter model for their product lines in all stores, especially in the field of comics and other pop culture items. The main office would order comics from Diamond Distribution and then allocate them to all stores, without taking into consideration the individual desires of the market in each area.  Especially in comics, one area may have heavy demand for DC while another area may have heavy Marvel presence. Assuming all comic fans like every line equally is a recipe for failure.

Harley Quinn Annual To Include Scents

The Harley Quinn Annual arriving in October will come polybaged.  Why? Glad you asked. The first printings of the issue will come with scratch and sniff inserts at appropraite points in the story with the scents of leather, suntan lotion, pizza and cannabis. From the email:

The ‘rub and smell’ scents featured in HARLEY QUINN ANNUAL #1 were chosen in an 
effort to capture the world in which Harley lives. This 'scenticular' book was 
created in the spirit of innovation and fun that DC Entertainment brings to our 
fans every day.

There will be two editions of HARLEY QUINN ANNUAL #1 available to retailers, and 
each edition will have a BOMBSHELLS variant. All copies will by poly-bagged.

UPDATE: Retailers, please note that the ‘rub and smell’ feature will only be 
included in the first printings of this title.

The first edition and variant, available for purchase only in the domestic 
United States, includes smells similar to leather, suntan lotion, pizza and 
what’s referred to in the story as “cannabisylocibe 7-A.”

• HARLEY QUINN ANNUAL #1 (JUL148429)
• HARLEY QUINN ANNUAL #1 BOMBSHELLS VARIANT (JUL148430)

Why I Love Steve Jackson Games' Store Locator

Last week, I also received an email from Steve Jackson Games, asking me to confirm that the store still operated and to update our information on their store locator.  Yes, Steve Jackson Games has a store locator and it is probably the best one in the industry, for two reasons. 

First, it is quite easy to register with the SJG store locator. A couple of minutes spent entering information into the website and you are done.

Secondly, and just as important, the SJG store locator polices itself.  Regularly, the website sends out a confirmation email, asking the recipient to click a link to confirm that the store remains active. I assume that, if no one clicks on the link, the store locator removes the store from the locator ( I assume, we always click the link so do not really know what happens if you fail to do so). From what I can tell, with the exception of Diamond’s Comic Shop Locator, once a store gets onto a company’s store locator, it remains on there until the locator itself goes defunct. Even WOTC’s store locator, which sends us about 5 times the traffic of the SJG one, never asks stores to update listings or removes stores no longer in business. I know of a number of store owners who have said that when they do a search for stores in their area through the WOTC store locator, a number of stores come up that went out of business several years ago, which confuses potential customers and directs sales away from existing stores.  If SJG can have their locator send out a regularly scheduled maintenance link, surely WOTC could do the same.

Another locater that does a good job of keeping its list clean is Diamond’s Comic Shop Locator.  Of course, it uses a different mechanism rather than just registering on the site. You can only appear on it if you have a Diamond account, which almost all comic shops do, and pay a fee, currently starting at $50 a year. This serves as a great way to winnow out inactive stores.  If you don’t pay, you get dropped from the locator. Here’s hoping someone eventually does something similar for game stores sometime.

Mayfair Games Goes Exclusive and What It Means to You

As the press release below indicates, the big news for the gaming industry coming out of the San Diego Comic Con was the announcement that Mayfair Games entered into an exclusive distribution agreement with Alliance Games and Diamond Comics Distribution (for those who don't know, Diamond Comics owns Alliance):

Mayfair Games is excited to announce their partnership with Alliance Game Distributors and Diamond Comic Distributors for the exclusive distribution of their games to the U.S. hobby retail network.

Management at Mayfair Games foresees a future bright with opportunities for national campaigns with coordinated outreach and events. With the advent of streamlined, focused distribution to the hobby trade, Mayfair anticipates continued direct support of the hobby retail channel through the MAR program and other means.

Dan Hirsch, President of Alliance notes: “Having worked with Mayfair from the early days of both companies, we at Alliance are excited to partner more closely with them. This partnership allows both of us to focus on the things we do best – Alliance coordinating and wholesaling, and Mayfair developing award winning titles, building brands and communities!”

What does this mean to you?  If you are one of our customers, not much.  We deal with both Alliance and Diamond so we won't have a problem having to open up a new account to keep stocking in Mayfair Games.  If the agreement helps keep Settlers of Catan and its expansions in stock, it helps make certain we don't suffer out of stocks of Catan and other popular Mayfair products

It may hurt other retailers that don't have an account with either of the two distributors as it means they will either have to open an account with Alliance or drop the Mayfair line.  Mayfair is the top selling board game line in many gaming specialty stores, so stores without an Allinace account will need to decide if it is worthwhile for them to create one. It also means that retailers won't have as large a selection of sources from which to procure Mayfair. Currently, if one supplier is out, stores can try another one and hope to find copies there.  Now, if Alliance or Diamond are out, so are we until Mayfair ships a reorder.

The gaming entity hurt most will be other distributors.  If they dealt in boardgames, Mayfair likely accounted for a significant portion of their sales.  Poof, that vanishes as soon as they sell out of their remaining Mayfair stock, leaving stores one less reason to put orders in with them.

Summing it up, little change for the customer, not much change for stores already dealing with Alliance or Diamond, major changes for stores that don't and other distributors.