Titan Publishing files a Motion for Diamond to “Assume or Reject” its Distribution Agreement

In January 2025, Diamond Comic Distributors declared Chapter 11 and recently Alliance Entertainment won the bidding process to take over most of Diamond’s assets/operations. There are still a lot of questions like what Alliance’s plans are for the distribution of comics once their purchase is finalized.

Titan Publishing has filed an emergency motion to “compel debtors (aka Diamond) to assume or reject (its) distribution agreement with Titan Publishing Group, Ltd. by April 25.”

The short version, as I read it, this is a shit or get off the pot as to what the plan is post Diamond’s purchase.

Here’s the relevant sections:

12. At this time, there are several deadlines under the Distribution Agreement which will occur before the end of the month. Namely, on or about April 26, 2025, Movant would typically provide Diamond with a list of Products to be released in July 2025, and, on April 29, 2025, Diamond would normally provide Movant with its orders for Products to be released in June, 2025. After these dates, there are recurrent weekly deadlines for the order process as many comic books are published on a weekly schedule.
13. Upon termination of the Distribution Agreement, Movant is required to “remove at its own expense all Products held on consignment (‘Inventory’) from Buyer’s distribution center;
    unless Buyer has chosen to sell or remainder this Inventory to offset amounts due from Seller to Buyer.” Distribution Agreement, § 11(f).
14. Movant requests that this court require Diamond to make a determination on assumption or rejection of the Distribution Agreement by April 25, 2025, with any such assumption or rejection effective on April 25, 2025.
15. To the extent that Diamond elects to reject the Distribution Agreement, Movant shall be immediately entitled to refuse to fill any orders from Diamond placed April 25, 2025, or later, and to exercise its rights upon termination of the Distribution Agreement, including the reclamation of unsold Products.
16. Upon the rejection of the Distribution Agreement, Movant requests that it be allowed to immediately terminate the Distribution Agreement, although Movant may, at its option, honor orders already placed by Diamond.

As we keep saying, there’s a lot more to go before this matter is settled and expect a lot more questions as far as contracts to go. You can read Titan’s full motion below.