Diamond Comics to Stop Receiving Shipments of New Comics

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

Diamond Comics to Stop Receiving Shipments of New Comics Amid Coronavirus Concerns

In a move similar to one announced by Amazon last week, Diamond Comic Distributors is no longer taking in new comics at its warehouse. ComicBook.com can confirm Diamond has asked printers to not send them any more new products. The hold, the result of a slowdown in the economy due to the COVID-19 pandemic, will remain in place until further notice. Diamond will continue to ship out products that are already in its warehouse for the time being. This is a significant signal towards the future for comics shops around the country. Diamond is the exclusive distributor of new releases from all of the comics direct market's biggest publishers, including DC Comics, Marvel Comics, Dark Horse Comics, Image Comics, Dynamite Entertainment, BOOM! Studios, and IDW Publishing, as well as many of the smaller publishers. Diamond controls such a significant portion of the direct market that the system cannot function as is without the distributor.

We're still awaiting more specifics, but Diamond typically doesn't keep a large backstock of new comics in its warehouses. That's to say that it shouldn't be long before its stock of new issues is depleted and the flow of new products to comic shops come to an end.

What comes next remains an open question. Will publishers continue to put out products if the direct market grinds to halt? Could the market pivot towards focusing more on the digital side of things during this pandemic? Comixology is in place and other systems could pop up, but will readers make the jump? Or will the industry's biggest publishers simply go on pause for the duration of the crisis? These questions remain unanswered, but more news is sure to be forthcoming.

This news comes after publishers began rolling out plans to help ease the stress the pandemic will put on the direct market. Some, like Image Comics, announced it would make new comics returnable. Marvel announced a discount to books being sold to retailers. This also follows news that the annual industry event Free Comic Book Day has been delayed from its usual place at the beginning of the year until later in the year.

It is also worth noting that Diamond owns Alliance Game Distributors, a significant presence in the games market but not to the extent of what Diamond means to comics. No word yet on Alliance's coronavirus plans.

The news was first reported by Bleeding Cool.

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

Yeah, I'm in NJ so my LCS said they're getting this week's books in, but they can't open to sell them. I was kind of expecting DC and others to soon announce they're halting printing. It's going to be nuts if I have to keep track of and buy months and months of books when I can get back to my LCS.

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

DIAMOND COMICS DISTRIBUTORS Ceases Receiving Products for Distribution Due to Coronavirus

Distribution/shipments to stores will continue through Wednesday, April 8, according to a source at Diamond.

Diamond will reportedly continue distributing existing product from its warehouses.

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

So, this week's orders are still going out? Even if they're going to closed stores (like in CA, NJ, PA) etc? That's how I read that.

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

DIAMOND HALTING DISTRIBUTION OF NEW PRODUCT, ALLIANCE SHUTTING DOWN COMPLETELY

Geppi Family Enterprises CEO Steve Geppi has announced that Diamond Comic Distributors will halt distribution of new product, and that Alliance Game Distributors will shut down until further notice.
The move comes after some distribution centers for both companies were required to close by state-level lockdown orders in the past few days.

The effective dates are slightly different for the two companies. Diamond Comic Distributors U.S. will not distribute new product with street dates of April 1 or after, which means that the current week’s products are the last new products that will be distributed by Diamond until further notice. Earlier today, Diamond announced that product that comic retailers are receiving this week could go on sale immediately rather than waiting for the official on-sale day of Wednesday. Diamond's Olive Branch, Mississippi warehouse will continue to ship orders from inventory for retailers that are able to operate for now. Diamond UK has an earlier effective date; this week’s products will not be distributed in the UK.

Alliance Game Distributors, which has been operating from Fort Wayne, Indiana and Austin, Texas, will shut down at the end of the day tomorrow, March 24. Orders not shipped by the end of the day tomorrow will not be filled. Sales teams are currently taking orders.

Geppi also laid out the company’s plans for the future. “With these changes in our distribution strategy, we will work with our publishing partners to develop programs that will address product already in the pipeline and what will happen when we resume distribution,” he said. “We know that during this time you will face many challenges, and we will direct our energies toward addressing them, rather than fighting on increasingly numerous fronts to get product out.”

Geppi's full statement follows.

A Message from Steve Geppi, Chairman & CEO, Geppi Family Enterprises, Founder, Diamond Comic Distributors

CORONAVIRUS EFFECTS ON DISTRIBUTION
As everyone knows, the world faces ever-increasing challenges related to the COVID-19 pandemic. Its effects on the comics & collectibles and tabletop gaming industries have been felt far and wide. We are hearing from thousands of retailers that they can no longer service their customers as they have in the past, many of them forced to close by government action or resort to in-person or curbside delivery. Even those still open are seeing reduced foot traffic in most cases, a situation that seems likely to worsen with time.

Our publishing partners are also faced with numerous issues in their supply chain, working with creators, printers, and increasing uncertainty when it comes to the production and delivery of products for us to distribute. Our freight networks are feeling the strain and are already experiencing delays, while our distribution centers in New York, California, and Pennsylvania were all closed late last week. Our own home office in Maryland instituted a work from home policy, and experts say that we can expect further closures. Therefore, my only logical conclusion is to cease the distribution of new weekly product until there is greater clarity on the progress made toward stemming the spread of this disease.

EFFECTS ON DIAMOND COMIC DISTRIBUTORS
Product distributed by Diamond and slated for an on-sale date of April 1st or later will not be shipped to retailers until further notice. For the time being, however, we have been able to develop procedures with our teams at the distribution center in Olive Branch, MS to safely continue fulfillment of direct ship reorders for the retailers who are able to receive new product and need it to service their customers. It’s unlikely that orders will be filled on the same day they are placed, and these plans are subject to change if at any point we no longer feel that we can safeguard our teams while fulfilling orders.

Product distributed by Diamond UK and slated for an on-sale date of March 25th or later will not be shipped to retailers until further notice. Further updates with regard to reorders and other Diamond UK-specific information will be communicated directly to their customers as information becomes available.

EFFECTS ON ALLIANCE GAME DISTRIBUTORS
Product distributed by Alliance has been shipping from our Fort Wayne, IN and Austin, TX warehouses. Both are closing at the end of the day on Tuesday, March 23rd, in the interest of employee safety and to comply with direction from local governments. Any orders not shipped by that time will not be processed until further notice. Your dedicated sales team will still be working remotely and will help you with any orders you’d like to place today or questions you may have.

OUR SHARED PATH FORWARD
With these changes in our distribution strategy, we will work with our publishing partners to develop programs that will address product already in the pipeline and what will happen when we resume distribution. We know that during this time you will face many challenges, and we will direct our energies toward addressing them, rather than fighting on increasingly numerous fronts to get product out.

For those retailers who remain open in various forms, I encourage you let loose your own creativity. For the time being, you will be able to replenish your perennials from Diamond and/or Alliance, but you should also remember the stock you already have in your stores. If your doors remain open, it’s likely you will have customers who will continue to seek diversion from events of the world. Special sales, promotions, and even eBay can help you bring in cash during this trying time. Product for which you’ve already paid may well hold some of your answers. There have been many solid suggestions offered about how to help our retailers, and we will bring many of them together in future communications.

Besides the industry’s most immediate needs, we have been and will continue looking toward the future, when we see stores reopening, bringing staff back onboard, and getting customers in the door. We are looking at issues like debt accrued due to this crisis, what reduced ordering means for your discount tiers, and the availability of credit to help stores through and after this difficult time. We don’t have all those answers today, but we understand the many issues you are facing and look forward to addressing them as partners who all have an interest in the long-term health of the industry we love so much.

As I mentioned in my last update, this industry has been one of the greatest joys of my life, from my days as a collector to a retailer to today. I and my Leadership Team have made these decisions knowing full-well the effect they will have on all of you, as well as our publishing partners and our own team members around the world. At the end of the day, the safety and security of our teams and yours, along with the many customers we all serve, is paramount. I again thank you for your ongoing patience and support.

Thank You, Steve Geppi, Chairman & CEO, Geppi Family Enterprises

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

So, we have to expect announcements soon from the majors that they're halting production, right? What else can they do?

[Agent Purple The Illustrated Man Find all posts View Profile Close Agent Purple]

My LCS in Delaware is following the mandate to stay home, so they're allowing curbside pickup, shipping, or hold/cancellation. I'm contacting them to let them know to total my box so I can support the owners (and keep things from overflowing too badly later).

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

My LCS in Delaware is following the mandate to stay home, so they're allowing curbside pickup, shipping, or hold/cancellation. I'm contacting them to let them know to total my box so I can support the owners (and keep things from overflowing too badly later).

I’d do the same if they were open, but NJ has closed all non-essential business. Now, personally, I’d place comics over liquor stores in essential qualities, but apparently I’m in the minority.

[Big Blue Lantern Corps Honor Guard Find all posts View Profile Close Big Blue Lantern]

So, we have to expect announcements soon from the majors that they're halting production, right? What else can they do?

I'm not sure what the alternative would be. Could they decide that new comics go exclusively on Marvel Unlimited, the DCU streaming service, comiXology, etc? That's the only scenario that comes to mind, and I don't profess to know enough about the digital business models to state that those could possibly compensate for the lost print revenue.

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

Obviously this probably the best decision Diamond could make in an impossible situation but I'm not sure if this is good or bad for the industry. On one hand it prevents shops that aren't open or are seeing a severe drop off in foot traffic from being charged for a product they can't really sell.

On the other hand this is obviously going to affect shops that maybe weren't so hard hit and if they were depending on that income to pay rent/mortgages/bills...well the situation is fucked. Not to mention the impact on publishers and creators.

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

Today doesn't feel like a Wednesday for me without hitting the LCS.

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

Bleeding Cool: The State of the Comics Industry Under Coronavirus – On Tuesday

I have been writing this article for almost twenty-four hours. Been talking to senior comic book industry figure after another. The problem is, the second I get a hold of what might actually be going on, the situation changes from under me. But everyone is agreeing that this current coronavirus pandemic, and the reaction to it, will change the American comic book industry for good.

I understand that there is industry bailout funds being put together, which will seek to help retailers, creators, publishers and distributors under stress. There could be a little more co-ordination about everyone's efforts though. However, it is expected that a number of publishers and retailers will have to close as a result of this stress. There is a talent buying spree – creators who were told to stop working on their comics by their publisher, have been picked up already by Marvel, DC, AWA and Bad Idea, with a mission to keep on pumping out their pages in readiness for when everyone's had a cup of tea and all this has blown over. All Marvel and DC creators I have spoken to are still working on their projects.

The problem is that right now, Diamond has closed, distribution to the comic shops is shut down. Books that are printed now have nowhere to land. Away from comic stores and Diamond distribution, sixty traditional independent bookstores closed last week as it is, all with unpaid debts. And the big comics printer for DC, Dark Horse and more has just shut down.

There has been much-rumoured proposal at DC Comics to put the comics they are creating all on the streaming app DC Universe rather than just sell them as individual digital comics, as a way to make that service essential and give it a killer app. But a) it is still geolocked to the USA, b) would be seen as a death blow to US comic shops, undermining the physical sales that are most at threat and c) if it was meant to happen, it wasn't meant to happen yet. This would be just bringing it all forward and no one is ready yet.

There has been concern amongst creators who work on back-end payment only on creator-owned comic books, that a publisher making their comic book returnable especially without asking their permission first, may have broken contract with them, and may harm the individual creator who hadn't factored the costs to them of returnability, more than anyone. There are also alternative distribution plans being worked on by notable comic book industry figures, trying to work around the current restrictions and get new printed comics content to stores and to readers, but the obstacles, currently, are huge. Ingrams, which deals with graphic novels is still operating, for now, but for the comics industry it is a relatively small fraction.

[Space Cop The Dandy Find all posts View Profile Close Space Cop]

Yeah the streaming service would kill a lot of brick-and-mortar shops and if I have a gap in my collection that can't be had physically, it would be a real motive to step away from the fandom.

[Hypo Lil' Leaguer Find all posts View Profile Close Hypo]

Either way they're fucked I think, allowing things to be released digitally would be a huge middle finger to brick and mortar stores but on the flipside I wouldn't be surprised to see a large number of readers decide to cut the cord after going a month or more without new books every week.

[Big Daddy Dave Skywalker Moisture Farmer Find all posts View Profile Close Big Daddy Dave Skywalker]

I just dont see how the comic industry can bounce back from this. What will even be left? Who will be left to sell to? And from where? I think the creators in the best position to survive for a while longer are creator owned guys who do online crowd funding and mail comics out directly to their customers.