Days after charges made by AfterShock regarding the non-payment of creator royalties went viral, the comics publisher filed for bankruptcy protection. AfterShock Comics, LLC, the comic firm’s parent company, filed for Chapter 11 bankruptcy protection on Monday. The business listed assets between $10 million and $50 million when it submitted its paperwork with the District of Central California. The identical amounts are reported under the company’s liabilities. The parent company of AfterShock’s division for developing films and television, Rive Gauche Television, also applied for bankruptcy protection.
Numerous creditors are cited in the filing paperwork, including Imprimerie JS Printing, a Canadian printer, who is due approximately $400,000 in total. There are also dozens of creators listed, some of whom owed unpaid royalties around $20,000.
Since Chapter 11 bankruptcy is a reorganisation bankruptcy, the business can carry on as normal while it deals with the fact that it is presently unable to pay all of its creditors. Marvel Comics is the most well-known example of a famous company that has gone through Chapter 11 and came out on the other side. However, numerous businesses have failed to emerge from bankruptcy.
Former Negative Burn editor Joe Pruett and former Marvel and DC editor Mike Marts, along with Lee Kramer, Jon Kramer, and Michael Richter, established AfterShock Comics. The Chapter 11 filing was signed by Jon Kramer. Marts earlier this year departed from AfterShock to take the position of editor-in-chief at Mad Cave Comics. Brian Cunningham, a former editor for DC, took over for Marts.