As the comic book industry grinds to a halt with no new comic books until the end of the month at least, it seems as though the entire industry will be feeling the tremors.
Diamond Distribution, the ultimate supplier for nearly every comic book shipment and many other items, has informed vendors that it will be unable to make payments this week. In a letter sent out to vendors, signed by Geppi Family Enterprises president Stan Heidmann, vendors were informed that the company hoped to correct this situation soon.
Dear Diamond Vendor:
As the world responds to the outbreak of COVID-19, our focus is on protecting employees, understanding the risks to our business, evaluating the risks to our industry and examining the Federal Government resources available. While the full impact of this epidemic is still unknown, one thing is certain: supply chain disruptions have cash flow implications across the extended industry that can’t be underestimated.
While we work to understand the current industry landscape, the unfortunate truth is that we are no longer receiving consistent payments from our customers. This requires that at this time, we hold payments to vendors previously scheduled to release this week. This is a difficult decision and not one we make lightly. As this situation continues to evolve, we are committed to building out a plan for payment and will have more information to share later this week.
Thank you for your patience and understanding during these difficult times.
President, Geppi Family Enterprises
With nearly every comic book store currently closed due to the COVID pandemic, it’s unclear how Diamond feels it will correct its cashflow issues, but hopefully one can be found soon.
Should this current industry shutdown move past the currently planned return on April 29, the long-lasting ramifications could be significant.
Only time will tell how much of the industry will be left standing after this ends.