According to a report by Chris Arrant of Newsarama, Diamond Comic Distributors founder Steve Geppi wrote a letter to publishers today outlining a new partial/deferred payment plan.
After initially deciding to withhold payments completely, Diamond will now be paying publishers 25% of their weekly balance due for the next six weeks. The remaining 75% will be deferred until the end of the six week period, at which time it will begin being paid in equal installments over a 13-week period. Additionally, Geppi and other Diamond executives will be taking a 50% pay cut.
Geppi’s entire letter (which was first posted on Newsarama) can be read below:
Dear Diamond Vendors,
COVID-19’s dramatic impact on businesses around the globe cannot be understated. My leadership team is working non-stop in concert with expert consultants and our publisher partners to safeguard the comic industry’s future. Thousands of retailers and publishers and hundreds of thousands of fans look forward to the products we distribute, and I take that responsibility very seriously.
Last week, we held vendor payments to allow for careful analysis of information from our industry, our business and the effects of COVID-19. We assured you that we would communicate our revised payment schedule when we were able, and I appreciate your patience and the many supportive messages I’ve received this week.
Working with what we know today, below is the outline of vendor payments from Diamond Comic Distributors and Diamond Book Distributors:
– Beginning this week, the week of April 6th, you will receive 25% of the weekly amount due under your contract terms
– Each subsequent week, you will receive a 25% payment of that week’s balance due
– This reduced payment schedule will continue for 6 weeks, with the remaining 75% due in each of those weeks being deferred
– Following that 6-week period, we will begin payment of the deferred balance in equal payments over a 13-week period
While we understand that this will have significant impact on everyone, and the situation could change, we also recognize that our world is in the midst of an unprecedented crisis and aggressive action is necessary. In addition to the steps outlined above, our leadership team is accepting a 50% salary cut, landlords have agreed to rent deferrals, and various other providers of professional services have agreed to defer their payments. Never before have we experienced such a test of our resolve and a demonstration of our commitment to each other.
Now more than ever we need to come together in support of one another, knowing that these difficult decisions will allow us to emerge from this trying time and thrive once again.
Thank you for your understanding and support.
Founder, Chairman & CEO
Geppi Family Enterprises
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