As the comic book industry continues to navigate increasingly uncertain times in the face of the ongoing coronavirus (COVID-19) pandemic, Diamond Comic Distributors has announced it has halted scheduled payments to vendors -- comic book publishers and manufacturers of toys, games and collectibles distributed by Maryland-based company to direct market comic book shops, bookstores and mail order services.
In a letter to its clients, Diamond's parent company Geppi Family Enterprises President Stan Heidmann cited cash flow issues and problems with the supply chain due to the global health crisis as the reason behind the company halting previously scheduled payments to vendors this week. Heidmann's full letter is below:
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.
Stan Heidmann
President, Geppi Family Enterprises
Earlier this month, Diamond halted shipments of newly published comics from its warehouses until the pandemic subsides. Heidmann outlined plans for tentative plans to follow, but with retailers shuttering their doors in the face of the crisis, the comic and toy distributor has seen disruptions in cash flow over the past several weeks that proved to be even more significant than originally anticipated.
(via Newsarama)