In the continued saga of Diamond Comics’ bankruptcy, on Thursday top bidder Alliance Entertainment terminated their purchase agreement to acquire the company’s assets, according to an SEC filing Earlier this month, Alliance had sued Diamond after the comics company chose to sell to the backup bidders, Universal Distributors and Ad Poplum, after first agreeing to sell to Alliance. Soon after, a judge approved the sale to Alliance and Alliance dropped their suit. Alliance did not specify a reason for terminating the agreement. Diamond did not announce the new purchaser, saying only that it had “pivoted to alternative, exceptionally well-known purchasers […]
Bankruptcy
Albert Whitman Files for Voluntary Bankruptcy
Children’s book publisher Albert Whitman has filed a voluntary petition for Chapter 11 bankruptcy in the Northern District of Illinois. According to the filing, the company owes approximately $1.66 million to creditors, the largest sum being nearly $256,000 to Lakeside Book Company. For years now, going back to 2020 but also recently, there have been complaints about the publisher being delinquent on royalty payments. In 2023, Whitman sold the rights to the Boxcar Children books to Random House Children’s.
Alliance Entertainment Sues Diamond Comic Distributors Over Bankruptcy Auction Outcome
Alliance Entertainment is suing Diamond Comic Distributors over the results of their recent bankruptcy auction. Diamond declared Chapter 11 bankruptcy in January, and Alliance was the high bidder on its assets with a bid of $72,245,000 (and widely reported as the winner in March). Universal Distribution and Ad Populum entered a joint bid of $69,130,000, “with Universal getting Alliance and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else,” and were named the back-up bid. A hearing was set for Monday in the U.S. Bankruptcy Court in the District of Maryland to ensure the legality […]
Alliance to Acquire Diamond Assets
Alliance Entertainment will buy most of the assets of Diamond Comic Distributors in Diamond’s bankruptcy sale, subject to court approval, with a hearing scheduled for Thursday morning. The deal includes Diamond Comic Distributors (U.S.), Alliance Game Distributors, Diamond Select Toys & Collectibles, and Collectible Grading Authority, and is expected to close in April. The acquisition will expand Alliance’s portfolio with Diamond’s IP and broaden Alliance’s reach into comic book shops and other retailers serviced by Diamond. The winning bid has not been released yet, but Alliance says it will increase its revolving credit facility by $40 million to finance the […]
Unbound Assets Sold to Its Own Execs in Bankruptcy Deal
UK crowd-funded publisher Unbound, which recently fell short of its fundraising goals and failed to pay authors and freelancers, has gone into bankruptcy administration, the Bookseller reports. A new company run by Unbound’s top executives, called Boundless IP Ltd, has bought Unbound’s IP, publishing contracts, vendor relationships, and other assets in a “pre-packaged sale”. Boundless is a “full-risk traditional publisher” run by Unbound ceo Archna Sharma and co-founded by Unbound co-founder and publisher John Mitchinson, who will act as director. Sharma has brought in new investors to the new company. Boundless says that they will continue the publication of most […]
Unbound Cash Flow Issues Leave Authors, Freelancers Unpaid
UK crowdfunding publisher Unbound has missed payments to authors and other business associates after failing to raise enough money in 2024, the Bookseller reports in a long exclusive story. Payment dates for royalties and other payments have been moved repeatedly, several sources report the magazine. One author said that he has been waiting for payment for more than six months. Another reported that he has not been paid for a book that published in early 2024, and was told in July that “the company could not pay its authors because they had not received ‘promised funds’ that they had reportedly earned […]