Industry Scuttlebutt: Diamond On Track for Bankruptcy Protection?

Tatterdemalion · June 26th, 2009, 09:20 PM

While there's little substance, rumors of Diamond's precarious future seem to be intensifying; following Diamond's change in their minimum order policy, effectively alienating many small publishers, word has it that Diamond owes money not only to many publishers, but to sponsors/advertisers and local retailers, too. We know Diamond has had at least one round of lay-offs, too.

Evidently, there is a contract provision whereby DC Comics (who has a strong relationship with Diamond from Marvel's failed coup in the '90s to self-distribute) would have the option of buying Diamond outright. I don't know how accurate this is considering the sudden acquisition of Diamond by DC's parent company would certainly create a bad situation for Marvel, but that's what I'm hearing and reading. Any change of ownership could obviously have massive repercussions in the distribution of product.

Has anyone heard or read similar rumblings? And with a crumbling bookstore market and an eroding comic book market, is Diamond too big to fail?

daveyyojimbo · June 26th, 2009, 09:36 PM

That would be stunning. Diamond being bought by DC? Who would distribute Marvel's stuff? Hell, who distribute anything? Wow.

Tattoo-X · June 26th, 2009, 09:42 PM

Diamond Sucks! IMO

Tatterdemalion · June 26th, 2009, 09:44 PM

Quote:

Originally Posted by daveyyojimbo

That would be stunning. Diamond being bought by DC? Who would distribute Marvel's stuff? Hell, who distribute anything? Wow.

I know, right? Diamond being owned by Time Warner is pretty much the only way Diamond could have more of an industry monopoly.

Speculation is that DC and Marvel would somehow co-invest to buy Diamond ... which seems paper thin to me, frankly. That's the tough thing with this: there isn't a lot of whole information, just intimations and scuttlebutt. I think it sounds preposterous, but who knows?

daveyyojimbo · June 26th, 2009, 09:48 PM

Quote:

Originally Posted by Tatterdemalion

I know, right? Diamond being owned by Time Warner is pretty much the only way Diamond could have more of an industry monopoly.

Speculation is that DC and Marvel would somehow co-invest to buy Diamond ... which seems paper thin to me, frankly. That's the tough thing with this: there isn't a lot of whole information, just intimations and scuttlebutt. I think it sounds preposterous, but who knows?

How Diamond escaped that monopoly investigation is beyond me.

What a mess it would be for DC and Marvel co-owning Diamond. No way, I just can't see it.

Tatterdemalion · June 26th, 2009, 09:53 PM

Quote:

Originally Posted by daveyyojimbo

What a mess it would be for DC and Marvel co-owning Diamond. No way, I just can't see it.

Yeah, I agree; it's just too outrageous. It isn't any secret Diamond has had some struggles as of late, but I simply cannot imagine the impact its failure would have on the comic industry, which relies so heavily on direct market sales. The potential ripple effect could be devastating ...

daveyyojimbo · June 26th, 2009, 10:08 PM

Quote:

Originally Posted by Tatterdemalion

Yeah, I agree; it's just too outrageous. It isn't any secret Diamond has had some struggles as of late, but I simply cannot imagine the impact its failure would have on the comic industry, which relies so heavily on direct market sales. The potential ripple effect could be devastating ...

Could be? Hell, it would be disastrous. That's why they should've been busted up for being a monopoly... they really are one. Glad i don't own comic shop right now. I wonder how hard hit the statue community would be?

Tatterdemalion · June 27th, 2009, 01:06 PM

Here's some additional information I've been able to round-up:

(1) It seems the major problem is the overall debt of the owner of Diamond, Steve Geppi; he's being sued for about $400,000 in one case, nearly $16 million in another, had $3 million in debt to the Maryland Stadium Authority forgiven, and his museum is about $700,000 in the hole, too. Source. Source.

(2) The friggin' internal DC memo following the '95 alliance of DC Comics and Diamond following Marvel's bid for self-distribution. It confirms DC does have legal first dibs. Color me truly horrified. Source. Source.

I can't believe this isn't getting more attention from people within the industry; this looks a lot worse than I initially realized. In other words, "Yowza."

Tattoo-X · June 27th, 2009, 01:11 PM

In the years of dealing directly with Diamond, I found them rude, unorganized, liars. Down with Diamond. Let's see how the Mob helps Geppi out now.

daveyyojimbo · June 27th, 2009, 04:47 PM

Quote:

Originally Posted by Tatterdemalion

Here's some additional information I've been able to round-up:

(1) It seems the major problem is the overall debt of the owner of Diamond, Steve Geppi; he's being sued for about $400,000 in one case, nearly $16 million in another, had $3 million in debt to the Maryland Stadium Authority forgiven, and his museum is about $700,000 in the hole, too. Source. Source.

(2) The friggin' internal DC memo following the '95 alliance of DC Comics and Diamond following Marvel's bid for self-distribution. It confirms DC does have legal first dibs. Color me truly horrified. Source. Source.

I can't believe this isn't getting more attention from people within the industry; this looks a lot worse than I initially realized. In other words, "Yowza."

Horrified, indeed. Damn.

Gangleri · June 27th, 2009, 09:13 PM

If DC did control current/traditional distribution avenues .... maybe it would force Marvel to distribute thier monthly titles via the internet .... Download to rent or own??

Might be the best thing for Marvel (in the long run) .... just look @ the problems newspapers are having staying in business.

I like reading comic "books" .... but maybe a 4-color "KINDLE" (see Amazon.com electronic book platforms) would revolutionize the comics industry.

daveyyojimbo · June 27th, 2009, 09:16 PM

Quote:

Originally Posted by Gangleri

If DC did control current/traditional distribution avenues .... maybe it would force Marvel to distribute thier monthly titles via the internet .... Download to rent or own??

Might be the best thing for Marvel (in the long run) .... just look @ the problems newspapers are having staying in business.

I like reading comic "books" .... but maybe a 4-color "KINDLE" (see Amazon.com electronic book platforms) would revolutionize the comics industry.

Ugghh, I know it's probably coming but I hate the idea of reading stuff online or whatever.

Gangleri · June 27th, 2009, 09:46 PM

Quote:

Originally Posted by daveyyojimbo

Ugghh, I know it's probably coming but I hate the idea of reading stuff online or whatever.

Amazon doesn't have a color electronic book .... yet. But I believe it accepts GIF files on the "legal pad" sized Kindle. That means DVD-Rom Marvel collections (by Marvel/GITCorp.com and others) could be viewed on something similar in size to a Comic or Book. ... on demand.

I enjoy the DVD-Rom collections. But I think it's great to own a "library" that I can read anytime/anywhere without having to search through Storage Boxes and Mylar bags.

The Great thing about Joe Q's run @ Marvel is that I don't bother to collect any more .... I just look for stories/characters I (might) enjoy reading about.

Long & the short of it is ... I'd rather see a change in format, than lose the monthly stories & characters Marvel is famous for.

daveyyojimbo · June 27th, 2009, 09:52 PM

Quote:

Originally Posted by Gangleri

Amazon doesn't have a color electronic book .... yet. But I believe it accepts GIF files on the "legal pad" sized Kindle. That means DVD-Rom Marvel collections (by Marvel/GITCorp.com and others) could be viewed on something similar in size to a Comic or Book. ... on demand.

I enjoy the DVD-Rom collections. But I think it's great to own a "library" that I can read anytime/anywhere without having to search through Storage Boxes and Mylar bags.

The Great thing about Joe Q's run @ Marvel is that I don't bother to collect any more .... I just look for stories/characters I (might) enjoy reading about.

Long & the short of it is ... I'd rather see a change in format, than lose the monthly stories & characters Marvel is famous for.

I have a few Marvel DVD-ROM collections, myself. It is a great way to cheaply access this stuff but it gives me a terrific headache after awhile. I guess you're right, I'd rather read it that way then to see it all go under with nothing to read.

dr_teng · June 29th, 2009, 11:57 AM

Just FYI guys, you've been able to read Marvel's comics online for a while now, at their site.

Marvel Digital Comics Unlimited | Subscribe to Read Iron Man, Spider-Man, Hulk, X-Men, Wolverine, Thor and more Marvel Comics Online

I really doubt they'd stop with paper production even with Diamond out of the picture, but you'll be seeing a lot more online development in the next few years. I haven't used a Kindle myself, but I've heard they're very easy on the eyes and a pleasure to use. When they whip out colour versions of e-ink screens, I'd be more than happy to go that route. Even now I don't mind reading comics on my laptop when I'm travelling, but it's not yet as enjoyable as a regular paper type.

CougarTrace · June 29th, 2009, 12:03 PM

Quote:

Originally Posted by daveyyojimbo

I have a few Marvel DVD-ROM collections, myself. It is a great way to cheaply access this stuff but it gives me a terrific headache after awhile. I guess you're right, I'd rather read it that way then to see it all go under with nothing to read.

Normally, I would agree Davey, but the Kindle is fantastic. I could see reading comics on that.

risingstar · June 29th, 2009, 12:25 PM

The relationship between Diamond and Comic shop retailers has been a tenuous one at best. I would imagine a full scale support in its utter demise upon learning of another more retailer-friendly distribution network in line to replace it. Bottom line, LCS want better return policies, greater access to catalogs, better customer service for things as simple as call backs within reasonable time frames, and to not have to face financial penalties for things that generally aren't their fault. There's actually a long list of reasons why 99.99% of comics shops would have no problem seeing Diamond go under.

Sadly, because comic books is a medium on the way down, the likelihood of another company stepping in and offering what retailers would hope for seems highly unlikely. I would imagine we're stuck with Diamond.

daveyyojimbo · June 29th, 2009, 02:26 PM

Quote:

Originally Posted by risingstar

The relationship between Diamond and Comic shop retailers has been a tenuous one at best. I would imagine a full scale support in its utter demise upon learning of another more retailer-friendly distribution network in line to replace it. Bottom line, LCS want better return policies, greater access to catalogs, better customer service for things as simple as call backs within reasonable time frames, and to not have to face financial penalties for things that generally aren't their fault. There's actually a long list of reasons why 99.99% of comics shops would have no problem seeing Diamond go under.

Sadly, because comic books is a medium on the way down, the likelihood of another company stepping in and offering what retailers would hope for seems highly unlikely. I would imagine we're stuck with Diamond.

You don't think there would be some kind of logistical nightmare with Diamond's fall? If it wouldn't pose a huge financial headache, I'm sure you're right. Diamond isn't exactly popular. But DC taking over Diamond? Doubt any of their competitors would find that a comfortable fit.

risingstar · June 29th, 2009, 10:02 PM

Quote:

Originally Posted by daveyyojimbo

You don't think there would be some kind of logistical nightmare with Diamond's fall? If it wouldn't pose a huge financial headache, I'm sure you're right. Diamond isn't exactly popular. But DC taking over Diamond? Doubt any of their competitors would find that a comfortable fit.

My thought is if DC wanted to distribute its own product, why bother with buying a flawed distribution network like Diamond? Why not simply start from scratch? They could establish their own business culture, hire their own handpicked "we love WB" henchmen, and they could feel free to market their own properties up the yin yang. They could also sell their products at a better price than Marvel distributors too. It just doesn't seem to be make much business sense for Warner to want to bother having anything to do with another company's product.

DC should not have to worry about Marvel's books at all. The best part is that if Marvel had to suddenly fend for itself and run its own distribution, they'd inevitably shoot themselves in the foot. DC wins. That is, of course, if DC chooses to distribute its own product. I bet they'd release their new books on Tuesday too just to piss Marvel off... lol.

daveyyojimbo · June 29th, 2009, 10:39 PM

Quote:

Originally Posted by risingstar

My thought is if DC wanted to distribute its own product, why bother with buying a flawed distribution network like Diamond? Why not simply start from scratch? They could establish their own business culture, hire their own handpicked "we love WB" henchmen, and they could feel free to market their own properties up the yin yang. They could also sell their products at a better price than Marvel distributors too. It just doesn't seem to be make much business sense for Warner to want to bother having anything to do with another company's product.

DC should not have to worry about Marvel's books at all. The best part is that if Marvel had to suddenly fend for itself and run its own distribution, they'd inevitably shoot themselves in the foot. DC wins. That is, of course, if DC chooses to distribute its own product. I bet they'd release their new books on Tuesday too just to piss Marvel off... lol.

Didn't Marvel try distributing their own stuff in the 90's?