In what could be a crushing blow for the comic market, especially small press publishers, Diamond has halted payments to comic book publishers as announced today.
From Newsarama:
In a letter from Stan Heidmann, the president of Diamond’s parent company Geppi Family Enterprises, the distributor explains to its vendors that they are “no longer receiving consistent payment from our customers” and that as a result, they will “hold payments to vendors previously scheduled to release this week.”
So, in other words, stores are not able to pay their Diamond invoices as many are month to month with income, some week to week, Diamond has gotten into a cash crunch, and as a result, Diamond is not paying the publishers.
Diamond does extend credit to some stores, however, many of Diamond’s customers are cash on delivery, meaning Diamond has already been paid for some of the books that they shipped out.
With no new comics coming out, Diamond’s cash flow has been disrupted in part because they have no new cash coming in from the COD customer’s but also because the credit customers have no income to pay what they already owe. Diamond has already extended out credit terms for retailers to help them get through the shut down.
The real problem comes in for small publishers. One publisher mentioned Diamond owed them multiple thousands of dollars. Which was payable to them in 30 days. The publisher already sent the books, they had been distributed, but now they are not getting paid. This means the artists and writers do not get paid, but also means that the printers, who are also on 30 days payable schedule, are not getting paid. A ripple effect that could take down many small publishers.
I actually hope this means that Diamond folds and another service fills the gap. From what I have seen, they are the single point of failure and monopoly within the industry.
Multiple companies fill the gap is what is needed.
I can’t tell you just how many times Diamond has screwed over publishers .. it’s nothing new .. extended credit terms .. ?? Really .. that’s news .. the terms and availability of credit are the same as they have always been ..
Feels like the Great Depression, comic book style.
Yeah it does.
Diamond has a long history of predatory tactics, some seriously grimy underhanded business methods that I learned about first hand while writing an investigative journalism piece that was shut down prior to publication for fear of retaliation by my editor.
I still have the piece and I’m going to be adding to it, because this is just further evidence of a corrupt industry Goliath that doesn’t like to play nice. I have direct evidence of criminal actions taken by Diamond employees causing the collapse of more than a few comic retailer’s, as well as records of profane abuses of power, some hard to believe, the first time, but when you have numerous victims coming forward, all telling the same story of an industry being run on fear. I was given plenty of evidence to back up the claims of these men and women, and I have continued to dig, because I could not wrap my head around how this could be allowed. Well, I’m in isolation due to Covid-19, and all I’ve got is time to go through these documents and make some calls, as this is unacceptable. We should expect better from the largest comic monopoly that’s allowed to operate using ganglike theatrics, time and again. I’ve never been on the fence regarding Diamond, I think they should be held accountable.
Small Press publishers getting the snub now, why do we allow this to continue?
You know we accept submissions if you need a place to publish it.
When I offer my personal opinion on Mr Geppi, that’s what it is, a personal opinion with perhaps some history .. I’d caution against publishing anything that might be inflammatory .. Mr Geppi is no stranger to the Courts ..
I really want to read your article, David Conine. Please, please, please put it up somewhere so we can read your findings. Please.
With DC launching new chains of distributing, it may be time to start cleaning up my only real investigative journalism piece to date, spending over a year researching and hearing stories you wouldn’t believe if I didn’t have sources! This news of DC’s two new distributors could change the industry! Stay in touch, as I’m working on a new series too, but I will start working on my Diamond piece! Best! DC
You have a place to post it if you need it.
Anthony, thanks for the interests and the offer, let me give it some thought, contact sources and see if I have the ok! My site PanelScientitifx is live on wordpress for discussing comic news, soon to discuss method and a new title or two we’ve been working on; Please join me, if I do move forward on the “Diamond Select, Who knew how Gangsta distributing Comics can be?” ; I’ll probably launch in unison on Comics Heating Up and Elsewhere as they will try and shut me down the minute i release some of this info! stay in touch! talk soon! David
thanks for the interests, let me give it some thought, contact sources and see if i have the ok! My site PanelScientitifx is live on wordpress for discussing comic news, please join me, if I do move forward on the “Diamond Select, Who knew how Gangsta distributing Comics can be?” ; I’ll probably launch in unison on Comics heating up and Elsewhere! stay in touch!
Crooked Diamond exposed for the frauds they are. Sad!
I would also love to see the monopoly that is Diamond disappear, never to be heard of again.
Mr. Conine, I would like to add my voice to the chorus that would love to read your investigative piece.
Financially weak companies tend to resort to desperate measures or abuses. Whereas strong companies can afford to treat better their customers and employees.
Yup… a week after they shutdown they then cry financial problems to avoid payments themselves. Steve Geppi is a joke and a horrible businessman.