Diamond Comics Distributors, one of the biggest companies involved in getting graphic novels into physical retailers for purchase, is filing for bankruptcy and scaling its business back as the industry braces itself for a new wave of economic challenges.

In a letter sent to comics retailers and publishers today, Diamond president Chuck Parker announced that the company has filed for Chapter 11 Bankruptcy and plans to sell off its Alliance Game Distributors arm to Universal in order to “protect the most vital aspects of our business.”

“This decision was not made lightly, and I understand that this news may be as difficult to hear as it is for me to share,” Parker explained. “The Diamond leadership team and I have worked tirelessly to avoid this outcome but the financial challenges we face have left us with no other viable option.”

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In recent years, many of Diamond’s bigger name publishing partners have dropped them as the company failed to meet expected delivery deadlines to retailers, which left stores struggling to meet customer demand. Given the tough time Diamond has been having as of late, the announcement that it’s filing for bankruptcy isn’t entirely surprising. It sounds like the company’s leadership very much wants to stay in the comics game as long as possible, but as it stands now, it seems like all Diamond can really do is to staunch the bleeding as much as it can.