Comments on: Steve Geppi’s debt woes growing http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/ The News Blog of Comics Culture Mon, 23 Nov 2009 05:15:17 +0000 http://wordpress.org/?v=2.0.2 by: Lottie J http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3664649 Sun, 11 Oct 2009 19:49:08 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3664649 It was an affirmation of what we already knew and was encouraging. It was an affirmation of what we already knew and was encouraging.

]]> by: ¿Está el mercado directo en peligro? « Comicopia http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3595482 Tue, 08 Sep 2009 21:23:39 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3595482 [...] Hasta ahora el mercado directo norteamericano de las tiendas especializadas no ha sufrido la crisis económica, al menos en la medida en que la han sufrido las grandes cadenas de librerías del país como Borders. Pero las señales de alerta se multiplican. Tras la subida del límite mínimo de pedido por título cuyo origen probable eran los problemas económicos de Steve Geppi, propietario del monopolio de distribución Diamond, y el riesgo de que ésta pierda la distribuición a librerías generalistas de los productos de Marvel en octubre de 2010 tras su compra por Disney, se añade ahora la posibilidad de que los tenderos se estén buscando la vida fuera de Diamond como señala hoy en una columna Chris Butcher. Tom Spurgeon apunta que no sería nada extraño que alguien comprase Diamond en los próximos meses. Continuará… [...] […] Hasta ahora el mercado directo norteamericano de las tiendas especializadas no ha sufrido la crisis económica, al menos en la medida en que la han sufrido las grandes cadenas de librerías del país como Borders. Pero las señales de alerta se multiplican. Tras la subida del límite mínimo de pedido por título cuyo origen probable eran los problemas económicos de Steve Geppi, propietario del monopolio de distribución Diamond, y el riesgo de que ésta pierda la distribuición a librerías generalistas de los productos de Marvel en octubre de 2010 tras su compra por Disney, se añade ahora la posibilidad de que los tenderos se estén buscando la vida fuera de Diamond como señala hoy en una columna Chris Butcher. Tom Spurgeon apunta que no sería nada extraño que alguien comprase Diamond en los próximos meses. Continuará… […]

]]> by: LMAOAGEPPI http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3578307 Mon, 31 Aug 2009 17:40:42 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3578307 All I can say is, it couldnt happen to a nicer person than Steve (Let me screw you and manipulate the Market) Geppi...and yes I to have been thru his museum and his private collection....been an insider for many many years...interesting to see how Geppi manipulayed prices and the market with his cronies....good to see him fall....maybe criminal legal action can come next All I can say is, it couldnt happen to a nicer person than Steve (Let me screw you and manipulate the Market) Geppi…and yes I to have been thru his museum and his private collection….been an insider for many many years…interesting to see how Geppi manipulayed prices and the market with his cronies….good to see him fall….maybe criminal legal action can come next

]]> by: Gigglemefunny http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3567071 Thu, 27 Aug 2009 18:14:51 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3567071 I say most of this stuff is crap and politics. I don't see Geppi going anywhere or those suits having much merit. Show me the facts. I say most of this stuff is crap and politics. I don’t see Geppi going anywhere or those suits having much merit. Show me the facts.

]]> by: starving in ms http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3541413 Wed, 19 Aug 2009 19:21:44 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3541413 i am an employee for diamond comics distrubution in ms. the work situation is horrible. temp to hire starts out at 7.25 an hour. just in the last month police have been at the work place twice with people fighting. no air conditioning, very few fans, no water coolers on the floor. so it must be great to be mr geppi and live very comfortably while others suffer. i am an employee for diamond comics distrubution in ms. the work situation is horrible. temp to hire starts out at 7.25 an hour. just in the last month police have been at the work place twice with people fighting. no air conditioning, very few fans, no water coolers on the floor. so it must be great to be mr geppi and live very comfortably while others suffer.

]]> by: Ayauqua http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3490565 Mon, 27 Jul 2009 00:14:52 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3490565 Nice post! GA is also my biggest earning. However, its not a much. Nice post! GA is also my biggest earning. However, its not a much.

]]> by: Industry Scuttlebutt: Diamond On Track for Bankruptcy Protection? - STATUE M A R V E L S http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3417885 Sat, 27 Jun 2009 16:06:53 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3417885 [...] Here's some additional information I've been able to round-up: (1) It seems the major problem is the overall debt of the owner of Diamond, Steve Geppi; he's being sued for about $400,000 in one case, nearly $16 million in another, had $3 million in debt to the Maryland Stadium Authority forgiven, and his museum is about $700,000 in the hole, too. Source. Source. (2) The friggin' internal DC memo following the '95 alliance of DC Comics and Diamond following Marvel's bid for self-distribution. It confirms DC does have legal first dibs. Color me truly horrified. Source. Source. I can't believe this isn't getting more attention from people within the industry; this looks a lot worse than I initially realized. In other words, "Yowza." [...] […] Here’s some additional information I’ve been able to round-up: (1) It seems the major problem is the overall debt of the owner of Diamond, Steve Geppi; he’s being sued for about $400,000 in one case, nearly $16 million in another, had $3 million in debt to the Maryland Stadium Authority forgiven, and his museum is about $700,000 in the hole, too. Source. Source. (2) The friggin’ internal DC memo following the ‘95 alliance of DC Comics and Diamond following Marvel’s bid for self-distribution. It confirms DC does have legal first dibs. Color me truly horrified. Source. Source. I can’t believe this isn’t getting more attention from people within the industry; this looks a lot worse than I initially realized. In other words, "Yowza." […]

]]> by: GW BUSHED http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169721 Thu, 23 Apr 2009 18:33:39 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169721 Forbes is giving an estimate/appraisal is all. Other more direct sources (confidential) place the team's value since the new cable contract at 500 mil+. Solid assets are useful for acquiring loans to pay off debts and avoid bankruptcy. Amazing how a "trumped up" 16 mil real estate market crash debt to a bank just might be lowered to 10 cents on the dollar when there's cold hard cash to be had. Hey, Synsidar! Would it disappoint you if Steve Geppi pulls thru his financial fiasco? Sounds like it. Forbes is giving an estimate/appraisal is all. Other more direct sources (confidential) place the team’s value since the new cable contract at 500 mil+.
Solid assets are useful for acquiring loans to pay off debts and avoid bankruptcy. Amazing how a “trumped up” 16 mil real estate market crash debt to a bank just might be lowered to 10 cents on the dollar when there’s cold hard cash to be had. Hey, Synsidar! Would it disappoint you if Steve Geppi pulls thru his financial fiasco? Sounds like it.

]]> by: Synsidar http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169628 Thu, 23 Apr 2009 17:05:26 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169628 According to <em>Forbes</em>, the current value of the <a href="http://www.forbes.com/lists/2009/33/baseball-values-09_The-Business-Of-Baseball_Rank.html" rel="nofollow">Baltimore Orioles</a> is $400 million. Having assets estimated to be worth "x" dollars is nice, of course, but solid assets aren't of that much use when debt payments are required. SRS According to Forbes, the current value of the Baltimore Orioles is $400 million. Having assets estimated to be worth “x” dollars is nice, of course, but solid assets aren’t of that much use when debt payments are required.

SRS

]]> by: Ralph Snart http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169120 Thu, 23 Apr 2009 13:18:53 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3169120 <strong>Ralph Snart #3...</strong> RSA #3 is still on schedule - four pages are complete. Moving to a digital only book may have come at just the right time and looks to be the best thing that could've happened. See this link. Diamond going belly up would be super cool, and if you know... Ralph Snart #3…

RSA #3 is still on schedule - four pages are complete. Moving to a digital only book may have come at just the right time and looks to be the best thing that could’ve happened. See this link. Diamond going belly up would be super cool, and if you know…

]]> by: GW BUSHED http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3166502 Wed, 22 Apr 2009 19:04:05 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3166502 RE: A 4/16/08 Forbes.com piece, “The Business of Baseball,” put the value of the Baltimore Orioles at $398 million. The cable deal with Comcast occurred in late 2008 and has not yet been taken into acount or listed by Forbes. In any event, 5% of 398 mil is 19.9 mil, still more than Mr. Geppi's reported debt issues. RE: A 4/16/08 Forbes.com piece, “The Business of Baseball,” put the value of the Baltimore Orioles at $398 million.

The cable deal with Comcast occurred in late 2008 and has not yet been taken into acount or listed by Forbes. In any event, 5% of 398 mil is 19.9 mil, still more than Mr. Geppi’s reported debt issues.

]]> by: Synsidar http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3165552 Wed, 22 Apr 2009 17:18:07 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3165552 <blockquote><em>The Baltimore Orioles net worth was last reported as $500,000,000 in 2008 with their new cable tv contracts, etc..</blockquote></em> A 4/16/08 Forbes.com piece, "The Business of Baseball," put the<a href="http://www.forbes.com/lists/2008/33/biz_baseball08_Baltimore-Orioles_336064.html" rel="nofollow"> value</a> of the Baltimore Orioles at $398 million. SRS

The Baltimore Orioles net worth was last reported as $500,000,000 in 2008 with their new cable tv contracts, etc..

A 4/16/08 Forbes.com piece, “The Business of Baseball,” put the value of the Baltimore Orioles at $398 million.

SRS

]]> by: Jerry O'Hara http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3164850 Wed, 22 Apr 2009 16:08:22 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3164850 Steve Geppi Will Overcome His Debt Problems; Re: Dean Burns' 4/21/09 Posting: "Stephen G. is in a lot of hot water" Interesting assessment, Dean, but not even close to the mark. The Baltimore Orioles net worth was last reported as $500,000,000 in 2008 with their new cable tv contracts, etc.. Steve owns 5% of the Orioles free and clear. Acc. to my figures that makes his interest worth about $25,000,000, which is almost double his "reported debt load". Steve's personal comic and memorabilia collection (gathered over 25 years or more) is perhaps worth $50,000,000. Am I guessing here? Hardly--I'm one of the privileged few that's been inside the Geppi Vault. Imagine picking up a short magazine box of CGC-slabbed Golden Age Key Super Hero issues worth about a cool 2 million--and that's just one box! As to Gemstone's woes: Disney drove such a hard bargain with Gladstone (Bruce Hamilton), that he stopped publishing the line. Steve Geppi picked it up for his love of the "Ducks" knowing full well that it would probably be a money-losing proposition for years to come--but Steve wanted to see Donald, Huey, Duey, Louie and Uncle Scrooge return home from Europe to the good old USA in triumph. Folly or not -- fifty years from now when the Gemstone issues are bringing a thousand dollars a copy (or more) Steve's publishing contributions will be remembered with gratitude. One thing I will agree with you, Dean: Steve may be losing $2 million a year right now, especially with the real estate market crash, and that means if Steve doesn't turn things around--he's going to go broke in 30 or 35 years... Steve Geppi Will Overcome His Debt Problems; Re: Dean Burns’ 4/21/09 Posting: “Stephen G. is in a lot of hot water”

Interesting assessment, Dean, but not even close to the mark. The Baltimore Orioles net worth was last reported as $500,000,000 in 2008 with their new cable tv contracts, etc.. Steve owns 5% of the Orioles free and clear. Acc. to my figures that makes his interest worth about $25,000,000, which is almost double his “reported debt load”.

Steve’s personal comic and memorabilia collection (gathered over 25 years or more) is perhaps worth $50,000,000. Am I guessing here? Hardly–I’m one of the privileged few that’s been inside the Geppi Vault. Imagine picking up a short magazine box of CGC-slabbed Golden Age Key Super Hero issues worth about a cool 2 million–and that’s just one box!

As to Gemstone’s woes: Disney drove such a hard bargain with Gladstone (Bruce Hamilton), that he stopped publishing the line. Steve Geppi picked it up for his love of the “Ducks” knowing full well that it would probably be a money-losing proposition for years to come–but Steve wanted to see Donald, Huey, Duey, Louie and Uncle Scrooge return home from Europe to the good old USA in triumph. Folly or not — fifty years from now when the Gemstone issues are bringing a thousand dollars a copy (or more) Steve’s publishing contributions will be remembered with gratitude.

One thing I will agree with you, Dean: Steve may be losing $2 million a year right now, especially with the real estate market crash, and that means if Steve doesn’t turn things around–he’s going to go broke in 30 or 35 years…

]]> by: Dean Burns http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3162609 Wed, 22 Apr 2009 00:46:54 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3162609 Stephen G. is in a lot of hot water... Diamond is a business that distributes comics pretty much all over the world... The market is pegged between 30 and 50 million in total sales in North America... (low estimate)... That means that Diamond - which gets to keep about 10% of that - makes between 3 and 5 million a year... (plus of course more from toys and books, but supposedly it isn't much more than that since there are other distributors of toys and books that do it better...) so... lets say Diamond makes $5M a year... they have several facilities, and about 50 employees... which can cost (on average) almost 100k per employee (after salaries and benefits and all other costs related to publish Previews, marketing etc etc etc)... so they pretty much might even run close to zero net income... and if we know they suffered a 4% dip in sales... and they run close to zero net income... that all of a sudden means a 4% LOSS... which is .04x50M = 200,000 loss... We also know that Steve lost lots of his retirement fund in real estate (with about 16Million in total mortgage loans that remain unattended to but would represent about 90k a MONTH in mortgage payments)... and we know he owed 373k to printers via Gemstone... and we know that he had about 900k in back rent for the museum... etc etc... let's summarize... - 90k / mo = 1 Million a year in mortgage payments not being made (up to) - 200,000 loss from Diamond - 373,000 loss from Gemstone (minimum - that is the creditor we KNOW he hasn't paid) - 900,000 loss from the Museum (that is another creditor we KNOW he hasn't paid) and probably no real end in sight for being able to keep paying this shortfall... So, from a cash flow point of view, he MIGHT be short in 2008 something in the range of $2Million... now, which asset does ANYONE think he can borrow that much of a SHORTFALL from EACH YEAR until the comic market increases (doubtful), the real estate market turnsaround (not this year) and/or the museum sees full occupancy (not until the economy recovers)... How many years can YOU run with a $2Million short fall each year? So, if he negotiates out of the Museum... hands it over to the stadium... that is gone... and if he trims the fat from the product list at Diamond... he can fire 13 people (as he did) and save somewhere between 300k and 1M a year in cash flow costs (he can reduce a lot of the other costs like space rent, and other overhead in quite the short run as the head count can do)... but that means he still has to come up with another 500k or so... from my assessment (which I hope you can tell is VERY rough, is not to be considered investment advice nor a thorough analysis) but really shows the tough times that Steve seems to have in front of him... when at one point he was doing well (probably making 3Million a year in profits, now a $2Million loss)... Observation... ========= Can he sell Diamond at a profit? If it is (now post thinning) breaking even again, he might get several 100k for the once proud company... (based on a low multiple of net income)... that isn't enough for him to retire on well... Best of luck to Steve (and whomever advisors he has) to help him out of this... and ensure that comic book fans can still get their wednesday dose of Spider-Man and Justice League before the entire direct sales market craps out... D. Stephen G. is in a lot of hot water…

Diamond is a business that distributes comics pretty much all over the world…

The market is pegged between 30 and 50 million in total sales in North America… (low estimate)…

That means that Diamond - which gets to keep about 10% of that - makes between 3 and 5 million a year… (plus of course more from toys and books, but supposedly it isn’t much more than that since there are other distributors of toys and books that do it better…) so… lets say Diamond makes $5M a year… they have several facilities, and about 50 employees… which can cost (on average) almost 100k per employee (after salaries and benefits and all other costs related to publish Previews, marketing etc etc etc)… so they pretty much might even run close to zero net income… and if we know they suffered a 4% dip in sales… and they run close to zero net income… that all of a sudden means a 4% LOSS… which is .04×50M = 200,000 loss…

We also know that Steve lost lots of his retirement fund in real estate (with about 16Million in total mortgage loans that remain unattended to but would represent about 90k a MONTH in mortgage payments)… and we know he owed 373k to printers via Gemstone… and we know that he had about 900k in back rent for the museum… etc etc… let’s summarize…

- 90k / mo = 1 Million a year in mortgage payments not being made (up to)
- 200,000 loss from Diamond
- 373,000 loss from Gemstone (minimum - that is the creditor we KNOW he hasn’t paid)
- 900,000 loss from the Museum (that is another creditor we KNOW he hasn’t paid) and probably no real end in sight for being able to keep paying this shortfall…

So, from a cash flow point of view, he MIGHT be short in 2008 something in the range of $2Million… now, which asset does ANYONE think he can borrow that much of a SHORTFALL from EACH YEAR until the comic market increases (doubtful), the real estate market turnsaround (not this year) and/or the museum sees full occupancy (not until the economy recovers)…

How many years can YOU run with a $2Million short fall each year?

So, if he negotiates out of the Museum… hands it over to the stadium… that is gone… and if he trims the fat from the product list at Diamond… he can fire 13 people (as he did) and save somewhere between 300k and 1M a year in cash flow costs (he can reduce a lot of the other costs like space rent, and other overhead in quite the short run as the head count can do)… but that means he still has to come up with another 500k or so…

from my assessment (which I hope you can tell is VERY rough, is not to be considered investment advice nor a thorough analysis) but really shows the tough times that Steve seems to have in front of him… when at one point he was doing well (probably making 3Million a year in profits, now a $2Million loss)…

Observation…
=========
Can he sell Diamond at a profit? If it is (now post thinning) breaking even again, he might get several 100k for the once proud company… (based on a low multiple of net income)… that isn’t enough for him to retire on well…

Best of luck to Steve (and whomever advisors he has) to help him out of this… and ensure that comic book fans can still get their wednesday dose of Spider-Man and Justice League before the entire direct sales market craps out…

D.

]]> by: Paul.D http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3156092 Thu, 16 Apr 2009 17:29:41 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3156092 Christian's post makes a valuable point, there's really no market (thank goodness!) for Hopalong Cassidy reprints. But I hope Fanboy Menace is wrong about internet publishing becoming the standard format for the future, whether for comics, magazines or newspapers (although this would make sense for reprints of limited interest material like Hopalong, I guess). Christian’s post makes a valuable point, there’s really no market (thank goodness!) for Hopalong Cassidy reprints. But I hope Fanboy Menace is wrong about internet publishing becoming the standard format for the future, whether for comics, magazines or newspapers (although this would make sense for reprints of limited interest material like Hopalong, I guess).

]]> by: G-FAN: 2 Reasons To Subscribe http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3150254 Tue, 14 Apr 2009 11:53:25 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3150254 [...] The recent policy changes involving Diamond Comic Distributors have many small-press publishers reeling as the company now has a new minimum order requirement before they will continue distributing those publications. In view of this article from Publisher&#8217;s Weekly about Diamond&#8217;s owner, Stephen Geppi, it would be wise to subscribe to G-FAN. Diamond distributes G-FAN. [...] […] The recent policy changes involving Diamond Comic Distributors have many small-press publishers reeling as the company now has a new minimum order requirement before they will continue distributing those publications. In view of this article from Publisher’s Weekly about Diamond’s owner, Stephen Geppi, it would be wise to subscribe to G-FAN. Diamond distributes G-FAN. […]

]]> by: Jason Embury http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3138929 Thu, 09 Apr 2009 21:21:50 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3138929 maybe someone should also look into the link between Diamond not paying publishers on time, which in effect means that creators of the comics they are distributing are going unpaid, or being paid late in many cases ;) Seems that one of the end results of Geppi's debt problems is that even more people than just creators are the ones being screwed over now. maybe someone should also look into the link between Diamond not paying publishers on time, which in effect means that creators of the comics they are distributing are going unpaid, or being paid late in many cases ;) Seems that one of the end results of Geppi’s debt problems is that even more people than just creators are the ones being screwed over now.

]]> by: Jamie Newbold http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3021624 Wed, 11 Mar 2009 20:11:47 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-3021624 Sounds like Diamond's gonna have to get into movie production. It's all the rage! Perhaps they can negotiate their way into future movies based upon some form of a survival contract. Either with other studios or co-op a new studio for the quick(if successful)movie money payoff. Divest some of its holdings and reform as a production company separate from Diamond but fiscally allied. Diamond is often the frontline when it comes to distributing and promoting independent comics-comics that now seem to find their way to film with greater frequency. Diamond is an American icon and deserving of government bailout. Too many nof us are dependent on Diamond and any shake-up in distribution could be the end of many stores. Sounds like Diamond’s gonna have to get into movie production. It’s all the rage!
Perhaps they can negotiate their way into future movies based upon some form of a survival contract. Either with other studios or co-op a new studio for the quick(if successful)movie money payoff. Divest some of its holdings and reform as a production company separate from Diamond but fiscally allied.
Diamond is often the frontline when it comes to distributing and promoting independent comics-comics that now seem to find their way to film with greater frequency.
Diamond is an American icon and deserving of government bailout. Too many nof us are dependent on Diamond and any shake-up in distribution could be the end of many stores.

]]> by: Junkdog http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2999590 Tue, 03 Mar 2009 11:43:43 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2999590 So does the Geppi mean that there won't be anymore exclusive publishing being done with them anymore? I mean because that was so important then.. I mean, 30 years ago... I mean... I dunno... Blame the cost of Disney comics... So does the Geppi mean that there won’t be anymore exclusive publishing being done with them anymore? I mean because that was so important then.. I mean, 30 years ago…

I mean… I dunno… Blame the cost of Disney comics…

]]> by: John DiBello http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2959923 Fri, 20 Feb 2009 22:14:12 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2959923 And yet again, an Archie giveaway comic has lied to me. And yet again, an Archie giveaway comic has lied to me.

]]> by: Robot 6 @ Comic Book Resources - Covering Comic Book News and Entertainment » Food or Comics | A roundup of money-related news [Updated] http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958898 Fri, 20 Feb 2009 06:10:41 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958898 [...] UPDATE: Heidi MacDonald unearths the details. According to court documents, Gemstone owes the money to print broker Global Interprint. [...] […] UPDATE: Heidi MacDonald unearths the details. According to court documents, Gemstone owes the money to print broker Global Interprint. […]

]]> by: Mark Boyd http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958731 Fri, 20 Feb 2009 01:38:21 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958731 So no one seems to be talking about the smaller independents; how will this affect IDW or BOOM! or Alias? There are some really good small publishers right now. Terry Moore's numbers on Echo might not even be good enough to weather this, for example. I mean, the interesting thing about comics these days is the diversity is really great and the audience is probably larger than it has been in a while. The quality, too, is up and I would hate to think that all of this can go away overnight. Man, things are tough all over. So no one seems to be talking about the smaller independents; how will this affect IDW or BOOM! or Alias? There are some really good small publishers right now.

Terry Moore’s numbers on Echo might not even be good enough to weather this, for example.

I mean, the interesting thing about comics these days is the diversity is really great and the audience is probably larger than it has been in a while. The quality, too, is up and I would hate to think that all of this can go away overnight.

Man, things are tough all over.

]]> by: Jerry O'Hara http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958659 Fri, 20 Feb 2009 00:01:37 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958659 Nobody has done more in recent years for the comics industry than Steve Geppi. Where would Marvel and DC be today without his wisdom and Diamond's expertise in comic book distribution? George T. Delacorte (Dell), whom had the most extensive comic books distribution network in USA history failed in 1960-61 and Western Publishing suddenly found themselves on their own with multiple independent distributors ripping them off at every chance. Had Steve Geppi appeared on the scene ten years before with Diamond, chances are there would still be a "Gold Key" comics line on the shelves today. Think about that. How many comic book store retailers went out of business in the past few years owing Diamond bookoo bucks? How about the chain bookstores which can sometimes run up bills in the millions..? Are they "current" with Diamond--I seriously doubt it. Nobody predicted this terrible economy and/or coming double-digit unemployment rate and the devastated real estate market -- which has ruined banks and investors alike. It's well publicized on the www that Steve Geppi invested in that real estate market and got taken like many others; but he also invested millions to develop GEM (Geppi's Entertainment Museum) in Baltimore, MD, which is a tribute like no other ever was or ever will be made to the Comic Book profession--and at an expense like no other. There's no bail-out funds headed for Steve Geppi, but perhaps there should be. If we lose Comic Books (an American invention) we lose an important part of our chidren's and grandchildren's heritage. At the least those who stiffed (and are stiffing) Diamond should pony up. I imagine a lot of flak headed my way for this post, but let it come. I helped to found FANDOM some 40 years ago and my gut feeling is that we should pull together now and offer Steve Geppi all the good will and support that we possibly can to help him get past his time of trouble -- OUR TIME OF TROUBLE. Nobody has done more in recent years for the comics industry than Steve Geppi. Where would Marvel and DC be today without his wisdom and Diamond’s expertise in comic book distribution? George T. Delacorte (Dell), whom had the most extensive comic books distribution network in USA history failed in 1960-61 and Western Publishing suddenly found themselves on their own with multiple independent distributors ripping them off at every chance. Had Steve Geppi appeared on the scene ten years before with Diamond, chances are there would still be a “Gold Key” comics line on the shelves today. Think about that.

How many comic book store retailers went out of business in the past few years owing Diamond bookoo bucks? How about the chain bookstores which can sometimes run up bills in the millions..? Are they “current” with Diamond–I seriously doubt it.

Nobody predicted this terrible economy and/or coming double-digit unemployment rate and the devastated real estate market — which has ruined banks and investors alike. It’s well publicized on the www that Steve Geppi invested in that real estate market and got taken like many others; but he also invested millions to develop GEM (Geppi’s Entertainment Museum) in Baltimore, MD, which is a tribute like no other ever was or ever will be made to the Comic Book profession–and at an expense like no other.

There’s no bail-out funds headed for Steve Geppi, but perhaps there should be. If we lose Comic Books (an American invention) we lose an important part of our chidren’s and grandchildren’s heritage. At the least those who stiffed (and are stiffing) Diamond should pony up. I imagine a lot of flak headed my way for this post, but let it come. I helped to found FANDOM some 40 years ago and my gut feeling is that we should pull together now and offer Steve Geppi all the good will and support that we possibly can to help him get past his time of trouble — OUR TIME OF TROUBLE.

]]> by: Future of US Disney Comics in Jeopardy | The Disney Comics Blog @ DCW http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958641 Thu, 19 Feb 2009 23:25:20 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958641 [...] Bad news from Gemstone Publishing, the publisher of Disney comics in the United States and the only publisher in the world that still publishes English-language Disney comics that are easily available. The economic recession has hit the Baltimore-based publisher hard as it is being sued for unpaid bills. Creditors Trade Association is suing Gemstone, Diamond and owner Steve Geppi for $373,000 on behalf of Global Interprint, which is the print broker for many of Gemstone’s deluxe editions such as the EC Archives. Gemstone owes the large sum for printing bills that were run up between December 2007 and September 2008. [...] […] Bad news from Gemstone Publishing, the publisher of Disney comics in the United States and the only publisher in the world that still publishes English-language Disney comics that are easily available. The economic recession has hit the Baltimore-based publisher hard as it is being sued for unpaid bills. Creditors Trade Association is suing Gemstone, Diamond and owner Steve Geppi for $373,000 on behalf of Global Interprint, which is the print broker for many of Gemstone’s deluxe editions such as the EC Archives. Gemstone owes the large sum for printing bills that were run up between December 2007 and September 2008. […]

]]> by: Chris http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958416 Thu, 19 Feb 2009 21:37:07 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958416 With regards to Torsten's concern, "However, what of Diamond Comics? That’s more of a magazine distribution model (albeit one-way). Perhaps that could be sold off to a hedge fund or private investor. (Great Shades of Perelman!)" I don't think a book distributor would get rid of the direct market portion of Diamond if the business was flipped, as the orders/sales are guaranteed, and very different from the magazine distribution model. If anything, the book market is moving towards the direct market model with non-returnable printings. The Direct Market Model is guaranteed money. Plus if a book distributor bought Diamond, there hopefully should be savings due the consolidation of back-office operations and the distribution system. The operations of Hachette and Random House are more sophisticated than those of Diamond. With regards to Torsten’s concern, “However, what of Diamond Comics? That’s more of a magazine distribution model (albeit one-way). Perhaps that could be sold off to a hedge fund or private investor. (Great Shades of Perelman!)”

I don’t think a book distributor would get rid of the direct market portion of Diamond if the business was flipped, as the orders/sales are guaranteed, and very different from the magazine distribution model. If anything, the book market is moving towards the direct market model with non-returnable printings. The Direct Market Model is guaranteed money.

Plus if a book distributor bought Diamond, there hopefully should be savings due the consolidation of back-office operations and the distribution system. The operations of Hachette and Random House are more sophisticated than those of Diamond.

]]> by: Roger North http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958403 Thu, 19 Feb 2009 21:29:52 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2958403 I hope this doesn't affect their comic book publishing. If so this could be the end of Disney Comics as we know it. I hope this doesn’t affect their comic book publishing. If so this could be the end of Disney Comics as we know it.

]]> by: John Jackson Miller http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2957639 Thu, 19 Feb 2009 16:35:57 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2957639 Evan, a difference in degree: Marvel had no intention of distributing anyone else's product at all with Heroes World. They simply took their own books out of the direct market system that existed. Had they kept selling others' titles at Heroes World, then the situation would have been more complicated -- as evidenced by the (final) International Association of Direct Distributors meeting that year, when I understand that DC did not make a sales presentation because Heroes World was one of the distributors in the room. That was before it was known for sure that HW would be dropping all others' titles. From that experience, I would expect a competing publisher in that case would want to know there were firewalls between what the distributor knew, and what the distributor's sister or parent publishing company knew, about the sales and plans of the publisher it's handling. There are a number of industries with relationships like that -- TV is particularly complicated. Torsten's right about the distribution situation in the 1960s -- would be ironic if history circled around like that. Evan, a difference in degree: Marvel had no intention of distributing anyone else’s product at all with Heroes World. They simply took their own books out of the direct market system that existed. Had they kept selling others’ titles at Heroes World, then the situation would have been more complicated — as evidenced by the (final) International Association of Direct Distributors meeting that year, when I understand that DC did not make a sales presentation because Heroes World was one of the distributors in the room. That was before it was known for sure that HW would be dropping all others’ titles.

From that experience, I would expect a competing publisher in that case would want to know there were firewalls between what the distributor knew, and what the distributor’s sister or parent publishing company knew, about the sales and plans of the publisher it’s handling. There are a number of industries with relationships like that — TV is particularly complicated.

Torsten’s right about the distribution situation in the 1960s — would be ironic if history circled around like that.

]]> by: Torsten Adair http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2957559 Thu, 19 Feb 2009 15:58:32 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2957559 DC distributed Marvel titles in the 1960s. At the time, Marvel was limited to eight titles. During the nascent 1980s, Marvel was distributed by Publishers Group West. Later, they were with Client Distribution Services briefly, and then with Diamond. If DC acquires Diamond, the exclusive distribution can go elsewhere, just as it can do now. Granted, Diamond Books has the expertise to distribute graphic novels to bookstores as it does now, and that might convince some publishers to stay, ESPECIALLY if flipped to a powerhouse like Random, which has experience distributing publishers it does not own (Shambhala, DC, Titan, Vertical, Egmont USA...) However, what of Diamond Comics? That's more of a magazine distribution model (albeit one-way). Perhaps that could be sold off to a hedge fund or private investor. (Great Shades of Perelman!) If DC does not intend to implement that clause, could Geppi then sell the business to another entity, pay off his obligations, and then retire? DC distributed Marvel titles in the 1960s. At the time, Marvel was limited to eight titles.

During the nascent 1980s, Marvel was distributed by Publishers Group West. Later, they were with Client Distribution Services briefly, and then with Diamond.

If DC acquires Diamond, the exclusive distribution can go elsewhere, just as it can do now. Granted, Diamond Books has the expertise to distribute graphic novels to bookstores as it does now, and that might convince some publishers to stay, ESPECIALLY if flipped to a powerhouse like Random, which has experience distributing publishers it does not own (Shambhala, DC, Titan, Vertical, Egmont USA…)

However, what of Diamond Comics? That’s more of a magazine distribution model (albeit one-way). Perhaps that could be sold off to a hedge fund or private investor. (Great Shades of Perelman!)

If DC does not intend to implement that clause, could Geppi then sell the business to another entity, pay off his obligations, and then retire?

]]> by: Journalista - the news weblog of The Comics Journal » Blog Archive » Feb. 19, 2009: Your corporate overlords http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2956551 Thu, 19 Feb 2009 09:18:29 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2956551 [...] Updating a story from yesterday, Heidi MacDonald unearths the client behind Creditors Trade Association&#8217;s $300,000+ lawsuit against Steve Geppi, Gemstone and Diamond: &#8220;Global Interprint, the print broker for many of Gemstone&#8217;s deluxe editions.&#8221; [...] […] Updating a story from yesterday, Heidi MacDonald unearths the client behind Creditors Trade Association’s $300,000+ lawsuit against Steve Geppi, Gemstone and Diamond: “Global Interprint, the print broker for many of Gemstone’s deluxe editions.” […]

]]> by: Evan http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2956038 Thu, 19 Feb 2009 05:40:52 +0000 http://pwbeat.publishersweekly.com/blog/2009/02/18/steve-geppis-debt-woes-growing/#comment-2956038 If Marvel attempted to complain about DC having any oppurtunity to own Diamond the answer is two words: Heroes's World Marvel attempted it. They failed. Now it would logically be DC's turn. However I'm sure they'd make sure what everyone needed to feel secure would be taken into account. After all, DC LIKES retailers. Its Marvel that acts like they're the unwanted stepchild. If Marvel attempted to complain about DC having any oppurtunity to own Diamond the answer is two words:

Heroes’s World

Marvel attempted it. They failed. Now it would logically be DC’s turn. However I’m sure they’d make sure what everyone needed to feel secure would be taken into account.

After all, DC LIKES retailers. Its Marvel that acts like they’re the unwanted stepchild.

]]>