Geppi Family Enterprises companies Diamond Comic Distributors, Diamond Book Distributors, and Alliance Game Distributors furloughed employees Monday, a company spokesperson confirmed to ICv2. The furloughs follow a shutdown of new product distribution on March 23 (see “Diamond Halting Distribution of New Product, Alliance Shutting Down”), which continues indefinitely.
During the furloughs, employee health, vision, and/or dental plans will maintain coverage, with the company paying both the employee and employer portions of the premiums.
Some employees remain for business-critical functions and to prepare for the resumption of distribution of new product, the company said. Diamond continues to distribute backlist product, but orders must now be placed online.
The move was taken “to protect our company’s financial future and preserve jobs,” the company said in a statement, citing other steps taken to date, including delaying payments to publishers, and reducing executive compensation (see “Diamond’s Delayed Pay-Outs, Alliance Handled Differently”).
“As a company and an industry we will navigate what lies ahead and we are committed to emerging and thriving on the other side of this crisis,” the company said. “We look forward to the day when we are able to be together again and resume the weekly distribution of new product.”