Hunt Valley-based Diamond Comic Distributors, one of the nation’s largest distributors of comics and pop culture goods, has filed for bankruptcy protection.

In a Chapter 11 filing Tuesday in U.S. Bankruptcy Court in Baltimore, the company said it plans to restructure. It has commitments for up to $41 million in debtor-in-possession financing from JP Morgan Chase to fund post-petition operating expenses to pay associates and suppliers.

The filing said Diamond has between 1,000 and 5,000 creditors, liabilities of $50 million to $100 million, and assets in the same range. Some big creditors include Penguin Random House, Disney Consumer Products, Hasbro and Simon & Schuster Inc.

As part of the restructuring, Diamond has received a $39 million “stalking horse” bid from an affiliate of Universal Distribution for its Alliance Game Distributors, a board game distribution division. Such an offer is the bid placed on a bankrupt company’s assets.

Diamond also has seen strong interest in its specialized business divisions, including a nonbinding letter of intent for Universal to acquire Diamond UK, the company said in a statement.

Diamond also is pursuing offers and has interest from potential buyers for other business units, including Diamond Book Distributors, Collectible Grading Authority and Diamond Select Toys, as well as its main comic, toy and collectible distribution lines.

“Diamond has been a linchpin of the comic book industry for over four decades,” Chuck Parker, president, said in a company statement. “Our priority has always been to provide quality service to publishers, retailers and, ultimately, comic fans, and we remain committed to finding additional buyers for our businesses.”

Angelo Exarhakos, president and CEO of Universal, said the company hopes to work with Alliance and Diamond UK to bring a stronger balance sheet and opportunities for growth to retailers and suppliers.

“Both companies have deep roots in the industry, and we look forward to continuing that into the future,” Exarhakos said in a statement.

The founder of Geppi Family Enterprises, the parent of Diamond, had reassumed the role of president in 2020. At the time, founder Steve Geppi also was the firm’s chairman and CEO.

Geppi, a native of Baltimore’s Little Italy, began collecting comic books as a child and opened one of the area’s first comic book stores, Geppi’s Comic World, in the basement of an Edmondson Avenue house in 1974. In 1982, he founded Diamond Comic Distributors with one warehouse and 17 retail customers. It grew into the country’s largest comic-book distributor.

Diamond Comic Distributors was founded in 1982 and grew into a multichannel platform that includes publishing, marketing and fulfillment services along with its distribution network for retailers and publishers.

Geppi had opened Geppi’s Entertainment Museum, showcasing a pop-culture and vintage comic book collection, next to Oriole Park at Camden Yards in 2006. He closed the museum in 2018 because of weak attendance, donating much of the historic collection to the Library of Congress.

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