Thursday, April 2, 2020
Thursday's Headlines | Diamond Issue's Statement
In a letter from Stan Heidmann, the president of Diamond's parent company Geppi Family Enterprises, the distributor explains to its vendors that they are "no longer receiving consistent payment from our customers" and that as a result, they will "hold payments to vendors previously scheduled to release this week."
For the layman, Diamond's customers are Direct Market or "specialty" comic book shops, mail order services, bookstores, and other retail operations who buy discounted products from the distributor to sell to their customers.
"Vendors" are the comic book publishers and manufacturers of games, toys, collectibles, etc., who depend on Diamond to distribute those products to retail stores.
Here is full letter from Geppi Family Enterprises' President Stan Heidmann:
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.
President, Geppi Family Enterprises