The day before a hearing set for April 25 to close Alliance Entertainment’s purchase of Diamond Comic Distributors took place, Alliance filed a notice with the Securities and Exchange Commission “terminating the previously executed Asset Purchase Agreement to acquire substantially all of the assets of Diamond.” No reason was given for the sudden change of heart.
Diamond followed by issuing a press release on April 26 that said that, with Alliance’s decision, it has “pivoted to alternative, exceptionally well-known purchasers who are excited to partner with us.” The statement, from Diamond chief restructuring officer Robert Gorin, further noted that the unnamed companies “have strong balance sheets and, importantly, unmatched presence and experience in our core industries.” Gorin said he expected to announce new agreements “very shortly.”
The surprise move by Alliance was the latest twist in a convoluted bankruptcy process. Alliance placed what was viewed as the winning bid for the bankrupt distributor only for Diamond owners kill the agreement to back a new, smaller joint bid by Canadian comics distributor Universal Distribution and pop culture manufacturer and licensor Ad Populum. Alliance then sued Diamond and, after a court ruling, was declared the winner in the bankruptcy auction.
Court filings showed that Diamond’s owners had a clear preference for the offer made by Universal—which had filed a stalking horse offer when Diamond filed for Chapter 11—and Ad Populum. As Gorin’s remarks alluded to, and comics trade publications have pointed out, Diamond owners appeared to be wary of Alliance's plans for the Diamond assets .
