The bankruptcy court in the Diamond Comic Distributors case approved the second consignment publisher settlement on Thursday, October 29, 2026, after Sparkle Pop, LLC withdrew its objection, settling the fate of nearly $50 million of inventory at cost.
Key facts
- Name: Diamond Comic Distributors bankruptcy, second consignment settlement
- Approved: Thursday, October 29, 2026
- Parties: The Ad Hoc Consignors Committee group, the bankrupt estate and Sparkle Pop, LLC
- Game publishers in the group: Paizo, Inc. and Green Ronin Publishing, LLC
- Inventory at stake: Nearly $50 million at cost, across both settlements
- Link: ICv2 report on the approval
What did the court approve?
The court approved a proposed settlement between a group of consignment publishers and the bankrupt estate, after Sparkle Pop withdrew its objection to it. A settlement for the other group of consignment publishers, the estate and Sparkle Pop was approved earlier the same week, so both groups of publishers now have approved settlements.
Unlike the first settlement, the second agreement as first proposed did not specify the fees Sparkle Pop would be paid for rent and services tied to the consignment inventory. ICv2 reports that the withdrawal of the objection presumably means the publishers and Sparkle Pop reached an agreement over those fees.
Which publishers are in this settlement?
The group covers the members of the Ad Hoc Consignors Committee, plus BOOM! Entertainment and Dynamite Entertainment. ICv2 notes the group includes two game companies, Paizo, Inc. and Green Ronin Publishing, LLC.
| Group | Members named by ICv2 |
|---|---|
| Ad Hoc Consignors Committee | Ablaze, LLC, American Mythology Productions, LLC, Avatar Press, Inc., Battle Quest Comics, Action Lab Comics, Drawn & Quarterly Books Inc., Fantagraphics Books, Inc., Green Ronin Publishing, LLC, Hermes Press, Living the Line, LLC, Paizo, Inc., UDON Entertainment, Inc. and Zenescope Entertainment, Inc. |
| Also included | BOOM! Entertainment and Dynamite Entertainment |
What happens to the inventory now?
With both settlements approved, the fate of nearly $50 million of inventory at cost has been settled, and product can begin moving to the publishers and to the stores that need it. ICv2 says it is now up to Sparkle Pop to make that inventory available expeditiously.
The settlements do not make the publishers whole. ICv2 notes that some inventory has been devalued by age, the publishers are giving up cash collected from the sale of their inventory by Sparkle Pop, they have endured significant legal costs, and the capital they invested in that inventory has been tied up for almost two years. ICv2 has also reported that Paizo has had a difficult period since the bankruptcy, including a reported loss of almost $2 million.
For tabletop readers, the two game publishers in this group are also in this week’s crowdfunding news: Paizo is running its 13 Omens horror RPG on Kickstarter, and our GAMA leadership story covers the trade association side of the hobby this week. Our board game publisher trackers follow the publishers we cover most closely.
Source: ICv2, Second Diamond Consignment Settlement Approved
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