When the '90’s crash was on and Capital City (a much, much better Distributor) became absorbed by Diamond, during this mish-mash, Marvel, under Ron Perelman at the time, purchased Heroes World and made them the sole distributor for Marvel Comics … when Marvel abandoned distributing through the Direct Market distributors, there were about ten remaining in business … while Capital City and Diamond commanded about 85% of the market, there were smaller Distributors …
Heroes World did not have the capability of handling Marvel’s sales volume at the time … in addition, shops were then required to place at least 2 monthly orders, one with Heroes World / the other with Diamond or Capital … the additional cost of shipping caused many Shops to close, not to mention Heroes World was simply a fiasco … errors in shipping and in billing were very, very high … and caused some Shops to quit the business as well …
This also caused the smaller Distributors to lose 40-50% of their sales, and essentially, drove them out of the Market … Geppi began a campaign with which to take over all remaining distribution, Milton and John at Capital City were doing the exact same thing …
DC then cut a deal with Geppi, giving him exclusive distribution of DC Comics / Direct Market … the ‘word on the street’ was, Geppi’s contract allowed DC an option to buy Diamond from him at any time as part of the deal … and, that agreement could still be in place to this day …
During the negotiation phase between Capital and publishers, Geppi simply offered publishers a better deal, a better piece of the action, than Capital did … Dark Horse and Image went with Geppi … leaving Capital a tiny fraction of what it had had previously in the Direct Market … later, Geppi began to chisel down the deal, by threatening lower Previews exposure, etc … not just on Comics, but TP’s / GN’s and peripheral goods … in order to beef up his own piece of the action …
Geppi, on a side note, also bought AnotherUniverse.com …
By then, Diamond had exclusive contracts with DC, Image, Valiant/Acclaim, and Dark Horse … thus, the writing was on the wall for Capital … Geppi, essentially, molded the Comic Business into what it is today … I don’t like him, I will never like him …
I’ve broken bread with Geppi more than once … he is an arrogant, self serving person that cares much more about his own bottom line than the Industry as a whole … and that’s a sad commentary …
So, there’s a little history for you …