Hours after the parent company behind AfterShock Comics filed for Chapter 11 bankruptcy protection, the publisher has broken its silence on the matter. In a new statement obtained by ComicBook.com, AfterShock says the filing is an attempt to restructure the company so that it can obtain additional financing “to continue to operate its business.” Under the filing, AfterShock still intends to continue operations, which means it will continue releasing comic books through the direct market.
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“After much deliberation, AfterShock Comics LLC has voluntarily filed a petition for protection under Chapter 11 of the United States Bankruptcy Code to enable the Company to restructure its senior secured facility as well as being in a position to secure additional financing to continue to operate its business,” the company’s statement reads.ย
It adds, “The intent of this decisive action, among other considerations, is to allow the Company to maintain operations in the ordinary course including, but not limited to, paying employees and continuing existing benefits programs,, upholding and following through on commitments to contracted creators, as well as vendors who supply goods and services related to marketing, merchandising and advertising. AfterShock will continue to operate, publish and market comic books and graphic novels to supply to direct market retailers and mass accounts through its distributors in accordance with all federal, state and local guidelines.”
The company then ends its statement by apologizing to the creators that have yet to be paid. “We regret the inconvenience this has caused to those we work with and may cause in the near future.ย However, we believe that going forward this will allow us to best position the Company for long-term success,” the statement concludes.
News of problems at the company surfaced earlier this month when a creator went viral for tweeting about late payments. AfterShock was then named as one of two major publishers with late royalty payments owed to many creators.ย
“Has it become industry standard to pay creators ridiculously late for their work? I’ve struggled ALL year with ALL the large companies I work for to get paid on the agreed time. I’m talking MONTHS late,” Will Robson tweeted in a now-viral thread. “It’s sad how nervous I am to even talk about this publicly in fear of being blacklisted for future work. But I’ve heard so many horror stories from other freelance creators recently about fighting for their paycheque and I need to vent this all out and hopefully raise some awareness to make serious change.”
