Alliance Entertainment has won the bidding through Maryland’s bankruptcy court to acquire the iconic comic and graphic novel company Diamond Comic Distributors.

Diamond filed for Chapter 11 bankruptcy in January, with the distributor owing as much as US$100 million to more than 30 unsecured creditors, including Penguin Random House and Bandai Namco. 

Expected to close on April 10, Alliance’s acquisition includes Diamond’s core comics business, along with subsidiaries Diamond Select Toys & Collectibles and Collectible Grading Authority. The Florida-based wholesale distributor will finance the purchase using its existing US$120-million revolving credit facility, which it aims to increase to US$160 million before the transaction period ends. 

After the buyout is finalized, Alliance will leverage Diamond’s assets to broaden its retail network to more than 5,000 specialty retailers, e-commerce sites and independent game stores across North America. In addition to comics and graphic novels, Alliance also sells more than 150,000 audio titles, distributes video games for Nintendo and Sony, and owns the independent film distributor Distribution Solutions.