Diamond Comics Bankruptcy

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Halomite

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Diamond Comic Distributors, the parent company of Gentle Giant, has filed for chapter 11 bankruptcy. Not sure what the future holds for Gentle Giant but this is certainly not good.

www.toyark.com

Diamond Comics Files for Bankruptcy

Diamond Comics Distributors have filed for chapter 11 bankruptcy. All of their properties, including Diamond Select Toys, Gentle Giant, AFA are now up for sale. Some UK assets already have a bid courtesy of Universal Distribution. Where that leaves Diamond Select Toys and Gentle Giant, which...
www.toyark.com www.toyark.com
 
Woah! While not surprising this is sad. I hope GG finds a way to continue to distribute their upcoming pre-orders and more items in the future.
 
rnbuda said:
Woah! While not surprising this is sad. I hope GG finds a way to continue to distribute their upcoming pre-orders and more items in the future.
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I'm sure they'll find a buyer but I would say anything currently in production is now in limbo.

The higher prices and excessive edition numbers have not been a good business model from what we've seen the last few years. Everything is going into deep discount and lingering for years...
 
Whoa. It will be interesting to see where things end up, and I hope that GG falls into good (or preferably better) hands. I feel for all of the employees who might be affected by this, but at the same time… down with monopolies. 😅
 
Yikes... I wonder if they're profitable enough to stand on their own given how much inventory they're producing and how rarely product seems to sell out now.

I wonder if they were to fold what it would mean for existing gifts... like, I still haven't gotten the Han Solo that we preordered eighteen months ago... Also there's this year's gifts.

There aren't too many announced mini-busts that I couldn't live without, but I' d be bummed if Bom Vimdin, Gold Leader, and that Wampa never happened.
 
Chapter II isn't the worst one (7 is), but the action does represent a last gasp Hail Mary attempt before things totally collapse.

We've already seen the bottom drop-out quality-wise on these lines when GG sold-out to Diamond, now we may finally be seeing the end on the horizon.
 
The optimist in me would like to hope that someone will see the potential in GG - when it's done well. Since taking over, DST made some choices that I liked, but there have been a lot of missteps too. I would still think that if someone were to focus on high quality sculpts, and perhaps smaller ES's, they could get away with almost any character lineup. And then maybe all of us would see busts that we would like to buy once in a while.
 
Not surprised. Collecting in general has taken a hit due to current economic situations. Add that prices have been going up on these things. Top it off with low interest outside of us die hard fans. I cut down my mini bust collecting. Diamond offers more than just mini busts but all mentioned applies to them as well.
I hope GG will be bought by another company. This will bring new hope and anxiety as we don't know what they will do. GG has survived this long but I really don't know how much longer it will last. Lots have got to change.
Hopefully whatever is in production will hit the shelves. Concepts that were released may not.
 
First of all, I'm feeling sorry for all people who will be affected by this. And I really hope, they will find other employment soon!

That being said, in the case of DST/Gentle Giant, they had it coming... Producing high editions of (mostly) mediocre products and trying to sell it at prices like they asked for these products, will leave you empty-handed in the end.

And I know, the economy in general has taken a hit, and production costs went up, as well as materials and shipping. But when you keep delivering high-quality items in smaller edition sizes, the want for these products will still be there. Other companies, licensed, as well as unlicensed, have stepped up to the plate. And they are able to deliver, what collectors want to see, nowadays. Collectors love a well-made item, which brings a certain uniqueness to their collection. And they will proudly display such an item, and point it out to people looking at their displays (in my case, to keep it Gentle Giant, that goes for the original Thrawn-bust and the original Boba Fett-bust as well, but I can imagine, people who own the Queen Amidala-bust feel the same way).

But if you, as a company think, collectors will buy your products, regardless how bad a likeness is, or the paint applications are, at editionsizes of around 3000, you really underestimate your customers, I think. No, we are not geeks, who'll buy just anything, as long as it has the Star Wars-logo slapped on it! We expect quality items, which won't downgrade our collections! As the collectors community has been trying to point out to DST/Gentle Giant more than once! But if you're headstrong, and keep doing things your way, despite all complaints by customers, despite overstock of products nobody wants, catching dust in your warehouse, eventually this is were it ends.

It really is a shame for Gentle Giant, because there was some improvement lately, but maybe it's for the best. Let's hope, a new owner will set things straight, and Gentle Giant busts and statues will find their way back to the high-end collectiblesrange where they used to be.
 
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Oh, well. It's a good thing I've been diversifying into other types of memorabilia. Due to much of what's been said above, and what happened to me with them at a personal level (some of you know it) DST/GG stopped being my main focus a while back. Yet, I honestly hope the line of Mini Busts and statues will continue as I have been collecting it for 20+ years and as I know many of you folks still have a great interest in them. Let's wait and see how everything pans out after this news, and what becomes of what was once a truly precious brand of collectibles. Here's hoping they can find a good buyer that could concentrate on what collectors truly want rather than what the big suits want.

P.S: Hopefully my preorder for the Bom Vimdin Mini Bust does not wash away.
 
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It would be a shame if GG's SW busts/statues came to an end...they still do, on occasion, make a really nice product that I'll want to pick up. I suppose, however, that I would not be devastated if this was the end. I've been buying GG since 2002 and I feel my collection is pretty complete at this point.

fyi I emailed customer service to see if they have any info for us...if I hear anything, I'll update this thread.
 
According to reports it looks like Diamond owes over $32 million to various companies. It's much worse than I imagined. Here are the top 30 entities they owe $ to:

Penguin Random House LLC $9,202,181.45 {Marvel Comics, Dark Horse, IDW}
Bandai Co, Ltd $4,348,743.08
National Entertainment Collectibles $2,682,994.22
Kin Kin Mould $1,811,934.04
TMP International, Inc $1,734,814.39
Disney Consumer Products, Inc $1,712,447
Hasbro, Inc $1,064,378.39
Wizards of the Coast LLC $914,601.84
Xceeding Partnership Solutions $843,496.70
Little Buddy LLC $694,628
Simon & Schuster, Inc $600,144.80
Bandai Namco Toys & Collectibles $576,072.46
Lunar Distribution $496,967.84 {Image}
United Parcel Service, Inc $476,398.57
VIZ Media, LLC $421,204.93
Catalyst Games Lab, LLC $401,483.12
The Army Painter Ap S $386,925.86
ARA, Inc $378,827.04
Titan Publishing Group Ltd $357,417.28
Square Enix Holdings Co, Ltd $314,295.51
Microsoft Corp $307,816.00
The Pokemon Company International, Inc $280,375.00
Transcontinental Inc $243,541.48
Beast Kingdom Co, Ltd $237,903.14
Funko, LLC $237,631.62
Publisher Services, Inc $223,140.92
Dynamic Forces, Inc $217,317.64
Pai Technology Inc $211,331.50
Udon Entertainment Inc $202,694.07
Super7, Inc $163,686.50

After the comics, graphic novels, cards & games....around half of the debt is owed to various licensee holders and/or toy & collectible companies....which falls squarely on the Diamond Select Toys & Collectibles, LLC branch. Disastrous....

Don't have to go out on a limb to conclude that this company as we've known it is toast. More than likely will be cut-up with various parts being sold-off. Steve Geppi turns 75 years old next week. The times have changed & there's no way he has the energy or patience it would take to turn this thing around. From the outside looking in it appears he's trying to find the least-painful way out at this point. Man, moving forward the smaller publishers are gonna be screwed...

But yeah, hope the Gold Leader mini bust is nearly finished and out of the factory by now. Once that last pilot piece is done I feel it would be a good stopping or resting point until another entity eventually buys out this tiny division (formally GG) and/or the SW license. In a few years there will be new things as there always are. The hobby survived losing Master Replicas, it surely can survive this as well. Though it still remains to be seen if it can survive Kathleen Kennedy....
 
I always find it hilarious when companies owe money to shipping partners when they charge their customers for shipping already. So where did that money go? 🙄
 
Just heard back from DST.

This is what I wrote:

"In light of Diamond Comics filing for bankruptcy, can you let me know if Gentle Giant is still carrying on business as usual? Are existing preorders safe? Are you taking new orders?"

And the reply:

"Thank you for reaching out.

We understand your concerns regarding the recent news and want to reassure you that Pre-Orders will remain unaffected.

Pre-Order products are still scheduled for release, and Gentle Giant and Diamond Select Toys customers will receive their eagerly anticipated items. Please rest assured, we are continuing to accept new orders without interruption.

If you have any further questions, please do not hesitate to contact us. We are here to assist.

---

Sincerely,

Oliver Jarjosa"
 
Bummer, I hope they find a buyer. I've been collecting the busts since 2003. I also just remembered I never chose my PGM gift this year which I just did, but who knows if we'll ever receive them. I also really want that Wampa in particular.
 
BenObi_70 said:
Just heard back from DST.

This is what I wrote:

"In light of Diamond Comics filing for bankruptcy, can you let me know if Gentle Giant is still carrying on business as usual? Are existing preorders safe? Are you taking new orders?"

And the reply:

"Thank you for reaching out.

We understand your concerns regarding the recent news and want to reassure you that Pre-Orders will remain unaffected.

Pre-Order products are still scheduled for release, and Gentle Giant and Diamond Select Toys customers will receive their eagerly anticipated items. Please rest assured, we are continuing to accept new orders without interruption.

If you have any further questions, please do not hesitate to contact us. We are here to assist.

---

Sincerely,

Oliver Jarjosa"
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Well that sounds positive, at least as far as pre-orders go. Hopefully that is accurate and we can get pre-orders fulfilled at the very least. Still hope they can move on beyond this.
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Unfortunately not very surprising, along with material prices going up, they seem to think were still in 2008 where these busts would sell 3-6k pieces.

Unless it is a trooper or a main character from the original 6 films, these sizes need to be less than 500. I shouldn't be able to pick up any piece I want for 40-60% on Amazon 4-6 months after they release.

You have your outliers, but most of their product just sits there, and how do busts like Dooku get approved and give them an ES of 3000? You really think you're going to sell 3,000..of that?
 
BenObi_70 said:
Just heard back from DST.

This is what I wrote:

"In light of Diamond Comics filing for bankruptcy, can you let me know if Gentle Giant is still carrying on business as usual? Are existing preorders safe? Are you taking new orders?"

And the reply:

"Thank you for reaching out.

We understand your concerns regarding the recent news and want to reassure you that Pre-Orders will remain unaffected.

Pre-Order products are still scheduled for release, and Gentle Giant and Diamond Select Toys customers will receive their eagerly anticipated items. Please rest assured, we are continuing to accept new orders without interruption.

If you have any further questions, please do not hesitate to contact us. We are here to assist.

---

Sincerely,

Oliver Jarjosa"
Click to expand...

Thank you for the update, Ben. Hopefully everything on the works gets finished, offered and sent out. Personally, as I know not all of us want the same,, my main interest would be for them to continue with the Cantina and Jabba aliens, OT droids that we have not seen production so far, and some militaries. Smaller edition sizes would be a way to go to minimize production costs to some degree. It is crazy the amount of units made for certain characters lacking much popularity or the constant repetition of others. If they were to offer more variety and pay more attention to many of the listings we have put up here, it would be a good starting point to sell more rather than to have merchandise going the discount way in many places. JMHO
 
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Well, that's sad. I was collecting minibusts since the beginning, the journey was very nice and I enjoyed a lot but all things have an end. If this is the end, it's ok for me, if they continue I will stop soon. My collection it's almost done, I'm missing some characters that I would like to add but I can let it go. They repeated a lot of characters the last period and the quality of the headsculpts was very bad in some cases and I was starting to loose attention in this line.
Just hoping at least that preorders will be released and I send many courage to the employees that for sure they are suffering at this moment.
 
MrPickles said:
Diamond was bought at auction last Tues. What the future holds for the GG branch is anyone's guess at this point.

https://bleedingcool.com/comics/alliance-entertainment-buys-diamond-comic-distributors/
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Looks like Gentle Giant may not have been part of the sale.

The proposed acquisition, which is subject to Bankruptcy Court approval, includes Diamond Comic Distributors (U.S.), Alliance Game Distributors (no relation), Diamond Select Toys & Collectibles, and Collectible Grading Authority. No mention of Diamond UK, Diamond Select Toys, FandomWorld, Gentle Giant or Free Comic Book Day.
 
Yeah, the "comic's journalist" Rich Johnson kinda wrote that out sloppily & weirdly. As far as I can tell from other sources, the auction bid DID include "Diamond Select Toys & Collectibles" which includes the Gentle Giant sub-division w/in its' umbrella. In Rich's follow-up sentence he confuses and conflates a few things by re-listing "Diamond Select Toys" again (this time w/out the word 'Collectibles' attached) & mentions Gentle Giant, but I believe he just doesn't understand that this is already a sub-division of DST&C.

Other business articles mention that yes, it's true that there's no specific word on the fate of the "Diamond UK" branch/division (my guess is that this particular asset was left out) or any mention of FandomWorld & FCBD. But again, this is just the consensus of the articles I've read on the matter, which were all very similar in the information provided. Of course we may learn different later. A judge still has to approve and finalize all of this on April 10th, but it looks very likely that it will go through.
 
rnbuda said:
Hopefully, the deal gets finalized and GG can go back to their older and more (in my opinion) successful and fun ways.
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I hope so too, mbuda! But I think that requires a change in management, if you ask me. And a change of attitude towards the quality of the products they're putting on the market, for sure!
 
Bankruptcy court would only handle US fillings, the UK & other foreign assets would be subjected to those countries.

That said, having a formal business plan in the US courts only helps foreign assets & prevents assets from falling into limbo or total lose.
 
“Court Approves Universal Distribution LLC and Ad Populum Bid to Acquire Diamond Comic Distributors and Related Assets

HUNT VALLEY, Md.–(BUSINESS WIRE)–Diamond Comic Distributors (“Diamond” or “the Company”), today announced that the United States Bankruptcy Court for the District of Maryland (“the Court”) has approved a combined bid by Universal Distribution LLC (“Universal”) and Ad Populum to acquire the assets of Diamond Comic Distributors. Under the agreement, Universal will acquire the assets of Alliance Game Distributors, and Ad Populum will acquire the assets of Diamond Comic Distributors, Diamond Book Distributors, Diamond Select Toys & Collectibles, Collectible Grading Authority, and other related assets. Diamond UK remains separate from this sale process. The transaction is subject to final closing.

“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,” said Diamond Chief Restructuring Officer Robert Gorin. “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,” said Angelo Exarhakos, President and CEO of Universal Distribution. “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,” said Joel Weinshanker, Managing Director of Ad Populum. “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.”

About Diamond Comic Distributors
Founded in 1982, Diamond Comic Distributors offers a multi-channel platform of publishing, marketing, and fulfillment services, coupled with an unparalleled global distribution network for its retailers, publishers and vendors. Diamond’s mission is simple: to provide our customers the best in products, price and personalized service. Learn more at https://www.diamondcomics.com/

About Universal Distribution
Universal has been distributing to hobby stores in Canada for over 30 years, servicing the needs of retailers in comics, collectible toys & figurines, sports and non-sports cards, collectible card games, and role-playing games.

About Ad Populum
Ad Populum aligns corporate strategy and fosters growth across its unique roster of consumer products and entertainment brands by leveraging its strong global retail distribution, product development, and manufacturing capabilities. Across its roster of brands, including NECA, Kidrobot, Wizkids, Chia Pet, Rubies, Smiffys, Enesco, Graceland, and more, Ad Populum is the largest producer of pop culture goods and experiences, targeting everyone from Boomers to Gen Z.”
 
This has been the craziest story over the last couple weeks out there to follow if you like comic & toy news. Sounds like it's finally over for the most part now. The cherry on the irony sundae for me was that Alliance Entertainment, the company that first "won" the auction with the highest bid to purchase Diamond, had to sue to keep the purchase intact after Diamond attempted to weasel out of the deal after making a backroom deal with the runner ups. Then after winning that part of the process for a SECOND time....it was discovered that Diamond had tried to hide/lie about their partnership with 'Wizards of the Coast' expiring/ending (which it did May 1st). So then it was Alliance who finally backed out of the purchase deal after learning about this bombshell. Throw-in a side-story with 3rd party trustees & debt holders suing to convert the bankruptcy to a Chapter 7 (total liquidation) vs. the current Chapter 11 status and for a few days there it was a complete circus. (I haven't read any updates about this part, but guessing it'll probably get tossed out.) Since yes, a couple days ago the judge approved the new sale to the runners-up, Universal Canada & Ad Populum, who will now split Diamond into various separate parts.

Postscript: Alliance is once AGAIN suing Diamond for fraud for withholding that important bit of WOTC information (which may have inflated the company's valuation as much as $8-9 million and thus inflating the bidding price). Now they're gonna attempt to get their deposit money & legal fees back and some extra for their time, trouble & various damages. So, so wild.... Overall, it sounds to me like Diamond was being run by a bunch of scumbags. No wonder it failed. Good riddance to bad rubbish...

One the Brightside & closer to the topic of this thread, NECA & Gentle Giant will now be sister companies under the Ad Populum umbrella. GG, which has really been "Diamond Select Toys" for a couple years now, I predict will have this moniker being wiped away and the new owners will once again push the original Gentle Giant, LTD. name back into forefront for various marketing & nostalgia purposes. Because as it stands now & represents---try not to snicker Sideshow, P1 & Iron Studio statue fans--Gentle Giant stands at the higher-end in terms of quality for Ad Populum's collectible & toy division's portfolio. Also, in a couple years after the dust from the tariff wars settles, I won't be surprised to see a lot more plastic NECA-type Star Wars things in the marketplace as well.

What a Saga this was...
 
JediJones77 said:
bleedingcool.com

Diamond Select Toys Shut Down As Part Of Ad Populum Purchase?

Diamond Select Toys reportedly shut down and staff laid off as part of Ad Populum purchase.
bleedingcool.com

Bleeding Cool is reporting today layoffs and a possible "shutdown" of Diamond Select Toys. Is Gentle Giant its own separate entity or would any shutdown of Diamond Select Toys encompass Gentle Giant as well?
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That's what I'm trying to find out as well. GG website doesn't say anything about it.
 
Yes, GG is a part of DST, so this news certainly impacts them.

I expect this will mean all pre-orders will be cancelled and products not made.

There may be a few exceptions if products have already been finished and are on the water. Unfortunately, given recent Tariff situations, probably nothing is on the water. It's possibly a contributing factor in the new owner abandoning manufacturing entirely.

What that could mean though is a few finished products being abandoned and entrepreneurial operators gaining control of them for sale through the secondary market. Pure speculation on my behalf, but I'll be keeping my eyes open just in case!
 
Just looking at the Gentle Giant things I have on pre-order, it's quite a lot just for a Jumbo figure collector alone:

Jumbo Holiday Edition R2-D2
Jumbo Lando Skiff Guard Disguise
Jumbo Amanaman
Jumbo Max Rebo
Jumbo Droopy McCool
Jumbo Anakin as Darth Vader
Jumbo Holiday Special Boba Fett
Jumbo Mail-Away Boba Fett
Jumbo IG-11
Premier Guild 2024 Jumbo FX-7
Premier Guild 2023 C-3PO Statue
Premier Guild 2024 R2-D2 Statue

Sy Snootles just came in stock on GG and BBTS, but I'm still waiting for my EE order. Lando Skiff and Droopy McCool say arriving in May on EE's site. EE says June for Max Rebo, but BBTS says May.

Considering we're still waiting on gifts for the past two memberships, I'm not sure how they'd deal with people having already paid for the memberships with the promise of those gifts. Full refunds or substitute a different item?
 
Dax said:
Yes, GG is a part of DST, so this news certainly impacts them.

I expect this will mean all pre-orders will be cancelled and products not made.

There may be a few exceptions if products have already been finished and are on the water. Unfortunately, given recent Tariff situations, probably nothing is on the water. It's possibly a contributing factor in the new owner abandoning manufacturing entirely.

What that could mean though is a few finished products being abandoned and entrepreneurial operators gaining control of them for sale through the secondary market. Pure speculation on my behalf, but I'll be keeping my eyes open just in case!
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You might prove right but I don’t think we have enough information to say this just yet. Gentle Giant was owned by Diamond Select but they’re their own business with their own offices and employees and all of that. If the new owners decide they can be profitable and are worth keeping in business they could stick around.
 
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I had one more in-stock membership coupon to use so I just ordered the Jumbo Concept Han Solo, which I had never gotten around to picking up. Guess we'll see if they still have enough employees there to deliver the goods. 😉 Actually I had ordered it from Amazon last month and it came crushed with the head broken off despite the shipping box being undamaged. 🤬
 
Kneel_Before_Zod said:
You might prove right but I don’t think we have enough information to say this just yet. Gentle Giant was owned by Diamond Select but they’re their own business with their own offices and employees and all of that. If the new owners decide they can be profitable and are worth keeping in business they could stick around.
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Or they could be parted out and sold off again. Sideshow, I'm looking in your direction.
 
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