There has been a massive shakeout of comic book stores over the past few years, all attributed to the actions of Marvel Comics, and especially its boss, Ron Perelman (the true antichrist).
It’s a long story, and we have to go back quite a few years. Marvel Comics was up for sale. One syndicate was headed by former Marvel Boss, Jim Shooter. Shooter was strongly detested toward the end of his tenure, and when Marvel found out he was planning to buy the company, the executives looked for a white knight. That was Perelman.
Perelman had no experience in the business, and was your typical 80s-style corporate raider. So he put together a mess of junk bonds and outbid Shooter. However, it left the company with a lot of debt.
Perelman started wrecking the company. It was the middle of the comic boom, so Marvel flooded the market with “Collector’s editions,” foil covers, pointless crossovers, and cheap sensationalism, hoping the collectors would continue to buy (his business plan at the time was to increase the number of comics published to absurd levels and keep increasing prices with the unstated assumption that a price increase wouldn’t affect sales). The comic boom went bust (partially because of the overuse of gimmicks). A lot of stores went under around that time, but generally those run by poor businessmen. At that point, Marvel and Perelman were only one of several factors; it was like the current dot com crash.
But Marvel became desperate; they had to pay off their massive debt. They decided that they would not only publish the comics, but distribute them as well. In this goal, they purchased Hero’s World, a small comic distributor, and announced that their comics would now be distributed only by Hero’s World.
Now comic book stores at that time could pick and choose their distributors, and – importantly – were given discounts based on the number of comics they bought. Since every comic book store needed to sell Marvel Comics, they had to either go with Hero’s World or pay more money for their material.
Further, Hero’s World was much too small to handle the demand. Ask any comic dealer and you’ll hear horror stories. I seem to recall one where a person was put on hold wondered how long it would take to get a person. The next day, the line was still on hold.
Around this time, DC, the second largest comic company behind Marvel, realized that it would hurt their sales to have multiple distributors, so they announced all their comics would be sold through Diamond Distributors. This was probably a necessary defensive move by DC, but it meant that a comic book store would buy only from Hero’s World (for Marvel) and Diamond (for DC and anything else). Several distributors went under, since they had nothing to distribute. A lot of stores went under, too, unable to cover the higher prices they were forced to pay because they couldn’t order enough to get a good price. I know my local store had to close one of its branches solely because of this issue – the owner was no longer making any money, even though sales were about the same.
Eventually, Marvel gave up on Hero’s World, but it was too late. Diamond took over their distribution (there was no one else), but by then too many stores had gone under. Perelman took Marvel to bankruptcy before he was finally forced out.
An ugly tale. Perelman nearly killed the entire comics industry.