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Who Had Been Selling Diamond Consignment Stock Since May 15?

Who was selling Diamond Comic Distributor-held consignment stock since May 15? The Debtors say it was Sparkle Pop.

Published Mon, 18 Aug 2025 13:57:06 -0500 by Rich Johnston

The current hearing in Baltimore for Diamond Comic Distributors’ chapter 11 bankruptcy case concerns a number of comic book publishers who object to the recent plans of the Diamond Comic Distributors, the debtors, to sell the stock owned by publishers on consignment to raise money to pay off the bank loans, not the publishers.

But according to the Ad Hoc Committee and other objectors, someone has already been selling consigned stock from the Diamond warehouse without court approval. At the time that this came to light in court filings, Diamond Comic Distributors, Inc., the debtor in this case, claimed that it’s not them, or to explain how it could possibly be anyone else. Previously in our Diamond bankruptcy coverage, we heard from the Ad Hoc Committee, representing publishers Ablaze, American Mythology Productions, Avatar Press, Battle Quest Comics, Action Lab, Drawn Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon and Zenescope, in filing that;

The Diamond Debtors say Ad Populum is selling the stock

Now, in recently unsealed court transcripts from the 5th of August, Paige Topper of legal firm Saul Ewing on behalf of the Debtors, addressed concerns about ongoing sales, claimed:

And according to filed reports, the Debtors have no money coming in from sales of goods and almost no employees to pay either, if these figures are accurate.

Filing screencap
Filing screencap

So they haven’t sold it, but instead point the finger at Ad Populum. Craig Palik, on behalf of The Consignment Group, who represent Dark Horse Comics, Dynamite Entertainment, Aspen, Black Mask, Dstlry, Heavy Metal, Magnetic, Massive, Oni, Panini UK, Alien Books, Graphic Mundi, Titan and Vault, noted that the picture on this matter was still emerging at that time,

While Catherine Hopkin, with YVS Law, representing the Ad Hoc Committee, told the court;

“We did not hear from the Debtor, Your Honor, until late last week regarding who was selling the property post May 15th. We really didn’t know who that was… we didn’t know who has control over the inventory of the warehouse. We now know we believe that it’s Sparkle Pop based on what the Debtors told us.”

And as to their desire to extend the length of this case, criticised by other counsel,

“with respect to the administrative costs, my clients’ inventory alone, I think the wholesale value is something approaching $20 million. The cost of storing at a facility that the Debtor is already maintaining and that the agreements provide that the cost of storage is an obligation of the Debtor, the value of this property far outweighs the minimal storage cost to get this question right.”

Paige Topper did, however, say that settlement plans have been proposed with publishers regarding the consignment stock.

“The Debtors have spent time preparing a proposal for a potential resolution of the objections to the Consignment Motion. That proposal has been shared with the significant Objectors… And it includes sort of two alternative proposals for a resolution.” Despite this, she said, “No Objector has taken the Debtors up on their offer in a substantive way.”

While Adam Fletcher, for Image Comics, pushed back against the Debtors’ liquidation arguments, asking

“what’s to stop a Debtor from asserting that they own any piece of property, selling it, and then saying, what’s the harm? I can give you the money.”

That was back on the 5th of April, and since then, it looks like Image Comics and Debtors have come to an arrangement, and have taken up a settlement proposal, or, at least, proposed one of their own, which was accepted. We may find out more today.

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About Rich Johnston

Founder of Bleeding Cool. The longest-serving digital news reporter in the world, since 1992. Author of The Flying Friar, Holed Up, The Avengefuls, Doctor Who: Room With A Deja Vu, The Many Murders Of Miss Cranbourne, Chase Variant. Lives in South-West London, works from The Union Club on Greek Street, shops at Gosh, Piranha and FP. Father of two daughters. Political cartoonist.

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Gavin Brothers Auctioneers LLC, based in Baraboo, WI, boasts four generations and over 70 years of experience in providing quality real estate and full-service auctioneering services to South Central Wisconsin, the Midwest, and beyond. Specializing in farm land auctions, real estate auctions, machinery auctions, estate auctions, online consignment auctions, dairy and beef cattle auctions, excess inventory auctions, farm toys, and complete liquidations.

Their team of expert auctioneers offers services for houses, vacant land, and more, with offices in Reedsburg and Baraboo, Wisconsin. Gavin Brothers Auctioneers LLC is dedicated to delivering professional and efficient auction services to meet the diverse needs of their clients throughout the region.

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