When Diamond Comic Distributors filed for bankruptcy in January, everyone in the world of comics knew that the industry was in for a shake-up. But no one could have predicted the battle royale that emerged over the company’s assets since its March 24 bankruptcy auction.
After a dramatic seesaw battle between Canada’s Universal Distribution and pop culture distributor Alliance Entertainment that resulted in two lawsuits, the Universal bid emerged as the winner. But Universal’s is a joint bid, put forth after the company teamed with another bid from Ad Populum, a holding company with a wide portfolio of pop culture–based companies. Which company will end up with which part of Diamond is still not clear. Meanwhile, while Diamond has continued shipping comics, toys, and games, merch is arriving late to comics shops. What’s more, the cloud of tariff flip-flops has the entire economy in a state of chaos.
While the sale of Diamond to Universal and Ad Populum is expected to close on May 14, most comics publishers and toy companies have already found alternatives. Many larger comics publishers have either signed with Lunar Distribution or Penguin Random House, and some smaller companies have teamed up with bigger entities. Alien Books, for instance, has signed a distribution deal with IDW, which is distributed by PRH, and horror house Storm King has signed up with indie book distributor SCB.
But one or two players are still on the field, most notably Dynamite Entertainment, which publishes a wide range of mostly licensed comics, and a few notable originals including The Boys franchise. Dynamite was exclusive with Diamond and has not yet announced a new or additional partner.
“We’ve had conversations with each of the major distributors and will be speaking with the new owners of Diamond as we are evaluating our options as the new chapter of the comic industry begins,” said Dynamite founder and CEO Nick Barrucci in a statement to PW. “Luckily, we are well positioned to work with the multiple options of distribution in the industry. Considering the size of our company we are fortunate that we did not have to make an immediate decision on where to have our books distributed.” Barrucci added that Dynamite continues to focus on the long term and what's best for readers, stores, and licensors.
But figuring out the long term is not easy for anyone right now. PW reached out to an array of publishers, retailers, and industry figures to gauge the current situation. While most would not go on the record, a picture emerged of resilience in the face of uncertainty—but mostly lots and lots of uncertainty.
One of the biggest lingering questions is what will actually happen to Diamond’s main comics distribution businesses. Universal, which has long had plans to expand into the United States, purchased Alliance Games Distributors and has an offer to buy Diamond UK, a separate and successful division which distributes comics from all publishers—even Marvel, DC, and Image—in the U.K.
But Diamond’s actual comics distribution business—along with Diamond Book Distributors, Diamond Select Toys & Collectibles, and the Collectible Grading Authority—was sold to Ad Populum. That company’s primary assets include the toy companies NECA, Wizkids, and Kidrobot, Rubies Costumes, gift company Enesco, and more. Ad Populum CEO Joel Weinshanker, a colorful figure in the industry, is also the managing partner of Graceland, the Elvis Presley estate.
Ad Populum is no stranger to picking up distressed companies. It acquired the bankrupt novelty chain Party City earlier this year, and just announced a relaunch this month. Other deals didn’t end as well: Ad Populum acquired the Hastings book store chain in 2014 but ended up liquidating the entire business.
Most expect that Universal will somehow end up with Diamond’s comics distribution business in the US. Like Alliance Entertainment, Universal was kicking Diamond’s tires prior to the bankruptcy filing, but a deal could not be made in time. Universal already has an agreement with DC Comics to sell its periodicals in Canada, so many wonder if that agreement could be expanded as part of the restructuring.
Neither Ad Populum’s Weinshanker nor Universal Distribution president and CEO Angelo Exarhakos have spoken publicly about their plans, which leaves scores of small publishers who called Diamond home still wondering how the new business will handle them. Comics retailers remain concerned that small presses are not going to survive, slowing innovation. “The ecosystem of finding the next big creator that can move product will be harder,” said one retailer.
But small houses are also adapting. Sean Michael Robinson, publisher of Living the Line, a small eclectic house which puts out outsider manga, foreign licenses, and experimental comics, went on the record with some of his decision-making, which included postponing most of the company’s line until the situation cleared up. While many smaller houses have gone DTC, Robinson notes he has “no interest personally in being a full-time postman,” and he has no concerns about Living the Line’s future even without Diamond thanks to their low overhead and robust fan base. “But there are many many publishers in our exact situation who would not survive should they close doors,” he added.
Robinson said he was approached by a different distributor, but found the terms would have been too disruptive to his business plan. Since then it’s been a roller coaster, with store orders first slowing down then, “when we had a book with a ton of initial buzz, like Mansect by Koga Shinichi, those orders quickly converted to a very aggressive schedule of reorders, presumably because stores were uncertain whether they could easily restock should the legal situation go south.”
Diamond has been very helpful throughout the process, Robinson said, and he hopes the new ownership will be able to right the ship: “I think there are probably a lot of low-hanging opportunities for cost-saving that won’t sacrifice the core business or drive away publishers who have stuck with them throughout.”
While many publishers publicly and privately have said they will weather the Diamond storm, the money they will get as unsecured creditors seems to be dripping away by the day. Diamond’s bankruptcy filings indicate a steady stream of payments to lawyers and consultants that is well over a million dollars, with more to come. In addition, court filings show Diamond’s comics business saw a $4 million loss in February.
In addition to tariffs-related delays and shortages, just getting products into stores can be difficult. One retailer said that with different products being offered by different vendors, it’s a time-consuming process to research and compare vendor solicitations to Diamond, and decide where and how much to order. Plus, orders from Diamond continue to ship late, causing more confusion for customers.
Another publisher described the mental fatigue caused by this prolonged uncertainty and confirmed that it will be taking a much more cautious approach to distribution going forward. While Living the Line is now shipping books after putting them on hold during the recent chaos, other companies are preparing to never see the money that Diamond owes them, and taking fewer risks.
The future of Free Comic Book Day is another question. Traditionally held on the first Saturday in May, the long-running event was overseen by Diamond and listed as one of its assets. Although free for readers, it was costly for publishers, stores, and Diamond, and whether it was an effective strategy to grow business had been debated even before the current situation unfolded. This year, some publishers cancelled their FCBD books, and others moved to Lunar. While the 2025 event was a success, and many would like to see it continue, its future is still very much up in the air.
Like everything else. In his statement, Barrucci perhaps best summed up the complicated feelings for publishers who are used to doing business in the long running but now-ended “Diamond Era.”
“The Diamond bankruptcy hit us hard not just from a financial point of view but because there are a lot of good people there, and this could not have been easy for them,” Barrucci said. “We have a 33-year relationship with them so emotionally it is akin to losing many close friends.... On the bright side, the fact that so many companies were jockeying to acquire Diamond, and its sister companies speaks to the health of the comics industry and I'm happy that many people will be able to continue.”
