Based on recent filings, April was a tough month in the Diamond Comic Distributors bankruptcy, bringing the total decline in the company’s net worth since January to over $10 million. The net worth at the end of April was negative $5,224, 936, and an amended operating report for January, which Diamond filed in May, corrected the net worth at the end of January from $2,527,866 (which it reported in its initial filing for January, see "Diamond Net Worth Declines") to $5,695,551. In round numbers, Diamond's net worth at the end of January was over $5 million, at the end of April it was over $5 million in the hole.
April was an active month in the bankruptcy, with an attempt by Diamond to change the winning bidder in the auction for the company's assets from Alliance Entertainment to Universal Distribution and Ad Populum, a lawsuit by Alliance Entertainment in response, the order by the court to complete the sale to Alliance Entertainment, the discovery by Alliance Entertainment that Alliance Game Distributors had lost Wizards of the Coast as a supplier and the subsequent termination of the purchase agreement, another lawsuit by Alliance Entertainment, and the court order to complete the sale to Universal and Ad Populum (see "Bankruptcy Court Rules").
Ongoing losses are painting a negative picture for publishers and other unsecured creditors that were owed money when Diamond filed bankruptcy. They are hoping that the assets of the company will be sold for enough, after expenses (which are mounting, see "Fees Mount"), to pay 100% of the money they're owed, but it's becoming increasingly difficult.

Total Decline Since January Now Over $10 Million
Posted by Milton Griepp on June 6, 2025 @ 2:48 am CT

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