After decades of being the top comic distributor, Diamond Comic Distributors has filed for Chapter 11 bankruptcy, a structure that allows businesses an opportunity to reorganize debts while still remaining in business. This has created challenges at local bookstores, struggling to get books delivered on time because of it.
Diamond Distributors has a long history of a near-monopoly in the comic book industry. After their founding in the ‘80s, they provided convenience for retailers by consolidating distribution under one roof.
“Imagine the equivalent of a supermarket. You know, we could get our food from other places, but a supermarket puts it all in one place for you,” said Joey Martinez, owner of Secret Identity Comics in Fresno. “So, Diamond kind of rose up, I feel like, as that middleman for distribution, as that one-stop comic book supermarket.”
By the early 2000s, Diamond established itself as the main distributor for almost all major comic book brands including Marvel, DC and Image Comics, as well as many smaller publishers.
Despite their hold over the industry, cracks started to form in 2019. These cracks worsened with the beginning of the COVID-19 pandemic, when many businesses were temporarily closing their doors.
When Diamond shut their doors, DC Comics decided to pull away and start their own distribution company.
“They lost DC, Marvel shifted away in 2021, Image left in 2023, and then Dark Horse and IDW (Idea and Design Works) also signed to Penguin,” Martinez said. “Diamond went from having 100% exclusivity for distribution to maybe 20% exclusivity.”
However, Diamond’s financial troubles have been years in the making and the closure of their Plattsburg warehouse in 2024 led to widespread shipment delays for retailers.
Martinez, whose shop faced months of late shipments, shared that due to the fear of missing out (FOMO) mentality of comic book collectors, the delayed comics often resulted in a 20-25% drop in sales each week.
Luckily for Secret Identity, Martinez saw it coming.
“I remember even saying to some people in 2024, ‘I don’t think Diamond makes it through the year,’ and they made it through two weeks of January before they threw in the towel,” Martinez said.
Secret Identity has since transitioned to Penguin Random House for their Marvel, Dark Horse and IDW comic book distribution, successfully receiving their books on time for the last two weeks of January.
However, even with Secret Identity’s success with the switch, the comic book industry is still facing trouble. Smaller publishers, which relied heavily on Diamond, are now in limbo when it comes to distribution.
Despite these challenges, Martinez remains optimistic.
“If Diamond goes under, either Lunar or Penguin will pick up that slack.”
There are already advances with smaller publishers, particularly Boom Studios, which was purchased by Penguin Random House in July 2024.
“There’s a lot of pressure in this industry to sell your books on release day,” Martinez said of the delays. “I would just hope that people would be patient with us and still support us and realize that we’re doing everything we can.”
