Photo credit: www.publishersweekly.com
On April 24, just one day ahead of a scheduled hearing regarding Alliance Entertainment’s acquisition of Diamond Comic Distributors, Alliance submitted a notice to the Securities and Exchange Commission indicating it was terminating the previously arranged Asset Purchase Agreement to acquire the majority of Diamond’s assets. The abrupt decision lacked any explanation.
In response, Diamond released a statement on April 26, announcing that, following Alliance’s withdrawal, the company had shifted its focus to “alternative, exceptionally well-known purchasers who are excited to partner with us.” Robert Gorin, Diamond’s chief restructuring officer, emphasized that these unnamed entities possess solid financial standings and, crucially, extensive experience in the core industries they operate in. Gorin expressed optimism about revealing new agreements “very shortly.”
This unexpected maneuver from Alliance added yet another layer to an already complex bankruptcy scenario. Initially perceived as the frontrunner, Alliance’s bid for the bankrupt distributor was undermined when the owners of Diamond opted to support a new, smaller joint offer from Canadian comics distributor Universal Distribution and pop culture manufacturer Ad Populum. Following this, Alliance initiated legal action against Diamond and was ultimately declared the victor in the bankruptcy auction due to a court ruling.
Court documents revealed that Diamond’s owners had a distinct preference for Universal’s offer, which had initially presented a stalking horse bid at the onset of Diamond’s Chapter 11 proceedings, alongside that of Ad Populum. As Gorin’s comments suggested, and as various comics industry publications have noted, the owners of Diamond appeared to harbor reservations regarding Alliance’s intentions for the Diamond assets.
Source
www.publishersweekly.com