Capital City Distribution
Encyclopedia
Capital City Distribution was a Madison, Wisconsin
-based comic book
distributor
which operated from 1980 to 1996 when they were acquired by rival Diamond Comics Distributors. Under the name Capital Comics, they also published comics from 1981 to 1984.
During most of its years of operation, Capital City introduced many supply chain innovations and controlled much of the American Midwest's comics distribution market. Capital City Distribution also published over 400 pages of printed material a month, including Internal Correspondence, which provided sales figures to their clients; and Advance Comics, their monthly catalog showcasing upcoming comic books, toys, and other pop-culture related items it distributed to comic book specialty shops.
, Griepp and Davis later turned the tables in 1980 when they took over much of Big Rapids' bankrupt business to form Capital City.
One of Capital City's first acts was to utilize the personnel of another former Big Rapids' acquisition, Well News Co. of Columbus, Ohio, to became the nucleus of an early distribution branch. In 1982, Capital City acquired the Berkeley, California-based Common Ground Distributors, which had been started by Bob Beerbohm in the late 1970s (and has been initially supplied by Big Rapids).
Capital City's Wisconsin location was relatively near World Color Press
's main printing plant in Sparta, Illinois
. (During that period World Color printed most American comic books, including those of the two industry giants Marvel
and DC
.) By 1982, Capital City operated out of a large warehouse in Madison that they shared with their largest account, mail-order retailer Westfield Comics.
, Pacific's distribution centers and warehouses were purchased by Capital City and rival distributor Bud Plant Inc.
Capital City also opened an expanded facility in Sparta, Illinois
, in the old space of another defunct rival, East Coast Seagate Distribution, alongside the comic-book printing plant.
By 1988, Capital City and its main surviving rival Diamond Comics Distributors had control of at least 70% of the comics distribution market between them.
In 1994, Capital created controversy by announcing penalties for publishers who didn't deliver their products within promised deadlines; this move followed an industry-wide push for 30-day returnability, a practice formerly in use when comics were primarily distributed in newsstands.
's late-1994 purchase of third-ranked distributor Heroes World Distribution
and decision to distribute its titles in-house. Faced with the loss of one-third of its business (Marvel's market share) Diamond reacted by outbidding Capital City for exclusive deals with Marvel's main rival DC Comics
; and despite intense efforts on the part of David and Griep, Dark Horse Comics
and Image Comics
as well.
Capital City reacted by suing Marvel for the loss of their business, resulting in a settlement allowing them to continue distributing Marvel product until October of 1995 (for everyone else, Marvel went exclusive with Heroes World starting in July). In addition, Capital City was able to sign exclusive deals with Kitchen Sink Press
, TSR
, and Viz Comics — as well as acquiring the Gary, Indiana-based distributor Friendly Frank's. Nonetheless, by 1996 Capital faced the choice between bankruptcy and selling out.
In July 1996 Capital City was acquired by Diamond. At the time of sale, Capital had over $150 million in annual sales. The purchase price was not disclosed, but the acquisition brought an estimated $50 million in sales revenue to Diamond, and effectively awarded Diamond complete control of the comics distribution system. Most of Capital City's 100 employees in Madison and another 100 in Sparta lost their jobs in the deal, though a few key staff members, including co-founder John Davis, joined Diamond's staff.
After selling Capital, Griepp became an industry consultant in the publishing, retailing, distribution, toy, and educational fields, and since early 2001, has operated ICv2.
, a futuristic superhero series by Mike Baron
and Steve Rude
, and distributed it through their own system.
Richard Bruning
was a key part of Capital Comics' staff, acting as Editor-In-Chief and Art Director until the company ceased operation in 1984. Besides Nexus, the other titles published by Capital were Badger
and Whisper. In 1984, after publishing only a handful of issues of their three titles, Capital shut down its publishing operation. Its titles were taken over by the new independent publisher First Comics
.
Madison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
-based comic book
Comic book
A comic book or comicbook is a magazine made up of comics, narrative artwork in the form of separate panels that represent individual scenes, often accompanied by dialog as well as including...
distributor
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
which operated from 1980 to 1996 when they were acquired by rival Diamond Comics Distributors. Under the name Capital Comics, they also published comics from 1981 to 1984.
During most of its years of operation, Capital City introduced many supply chain innovations and controlled much of the American Midwest's comics distribution market. Capital City Distribution also published over 400 pages of printed material a month, including Internal Correspondence, which provided sales figures to their clients; and Advance Comics, their monthly catalog showcasing upcoming comic books, toys, and other pop-culture related items it distributed to comic book specialty shops.
Origins
In the 1970s, Milton Griepp and John Davis had run a small Madison-based distributor called Wisconsin Independent News Distributors (WIND). Forced to sell their assets to Big Rapids DistributionBig Rapids Distribution
Big Rapids Distribution was a Detroit, Michigan-based distributor focusing on underground newspapers, radical literature, and underground comics. They were responsible for the unusually good coverage that underground comix and underground papers got in the Michigan area in the early 1970s, when...
, Griepp and Davis later turned the tables in 1980 when they took over much of Big Rapids' bankrupt business to form Capital City.
One of Capital City's first acts was to utilize the personnel of another former Big Rapids' acquisition, Well News Co. of Columbus, Ohio, to became the nucleus of an early distribution branch. In 1982, Capital City acquired the Berkeley, California-based Common Ground Distributors, which had been started by Bob Beerbohm in the late 1970s (and has been initially supplied by Big Rapids).
Capital City's Wisconsin location was relatively near World Color Press
World Color Press
World Color Press Inc. was a company which provided high-value and comprehensive print, digital, and related services to businesses worldwide...
's main printing plant in Sparta, Illinois
Sparta, Illinois
Sparta is a city in Randolph County, Illinois, United States. The population was 4,486 at the 2000 census.The city was the principal filming location for the 1967 film In the Heat of the Night.-Geography:Sparta is located at ....
. (During that period World Color printed most American comic books, including those of the two industry giants Marvel
Marvel Comics
Marvel Worldwide, Inc., commonly referred to as Marvel Comics and formerly Marvel Publishing, Inc. and Marvel Comics Group, is an American company that publishes comic books and related media...
and DC
DC Comics
DC Comics, Inc. is one of the largest and most successful companies operating in the market for American comic books and related media. It is the publishing unit of DC Entertainment a company of Warner Bros. Entertainment, which itself is owned by Time Warner...
.) By 1982, Capital City operated out of a large warehouse in Madison that they shared with their largest account, mail-order retailer Westfield Comics.
1984 expansion and rise to prominence
Griep became Capital City's CEO in 1984. That same year, with the demise of one of the larger independent publisher/distributors, Pacific ComicsPacific Comics
Pacific Comics was an independent comic book publisher that flourished from 1981-1984. It was also a chain of comics shops and a distributor. It began out of a San Diego, California, comic book shop owned by brothers Bill and Steve Schanes...
, Pacific's distribution centers and warehouses were purchased by Capital City and rival distributor Bud Plant Inc.
Bud Plant Inc.
Bud Plant was a wholesale comics distributor active in the 1970s and 1980s during the growth of the direct market. Starting in 1970 as a mail-order distributor specializing in underground comics, Plant absorbed some of his smaller rivals in the 1980s, and then sold his business to Diamond Comics...
Capital City also opened an expanded facility in Sparta, Illinois
Sparta, Illinois
Sparta is a city in Randolph County, Illinois, United States. The population was 4,486 at the 2000 census.The city was the principal filming location for the 1967 film In the Heat of the Night.-Geography:Sparta is located at ....
, in the old space of another defunct rival, East Coast Seagate Distribution, alongside the comic-book printing plant.
By 1988, Capital City and its main surviving rival Diamond Comics Distributors had control of at least 70% of the comics distribution market between them.
In 1994, Capital created controversy by announcing penalties for publishers who didn't deliver their products within promised deadlines; this move followed an industry-wide push for 30-day returnability, a practice formerly in use when comics were primarily distributed in newsstands.
Acquisition by Diamond
1995 saw a major restructuring of the direct market distribution system, caused by Marvel ComicsMarvel Comics
Marvel Worldwide, Inc., commonly referred to as Marvel Comics and formerly Marvel Publishing, Inc. and Marvel Comics Group, is an American company that publishes comic books and related media...
's late-1994 purchase of third-ranked distributor Heroes World Distribution
Heroes World Distribution
Heroes World Distribution Co., originally named Superhero Enterprises, was an American comic book distributor founded by Ivan Snyder, active from 1975 to 1997, during the growth and consolidation of the direct market. Heroes World was acquired by Marvel Comics in late 1994 to act as the publisher's...
and decision to distribute its titles in-house. Faced with the loss of one-third of its business (Marvel's market share) Diamond reacted by outbidding Capital City for exclusive deals with Marvel's main rival DC Comics
DC Comics
DC Comics, Inc. is one of the largest and most successful companies operating in the market for American comic books and related media. It is the publishing unit of DC Entertainment a company of Warner Bros. Entertainment, which itself is owned by Time Warner...
; and despite intense efforts on the part of David and Griep, Dark Horse Comics
Dark Horse Comics
Dark Horse Comics is the largest independent American comic book and manga publisher.Dark Horse Comics was founded in 1986 by Mike Richardson in Milwaukie, Oregon, with the concept of establishing an ideal atmosphere for creative professionals. Richardson started out by opening his first comic book...
and Image Comics
Image Comics
Image Comics is a United States comic book publisher. It was founded in 1992 by high-profile illustrators as a venue where creators could publish their material without giving up the copyrights to the characters they created, as creator-owned properties. It was immediately successful, and remains...
as well.
Capital City reacted by suing Marvel for the loss of their business, resulting in a settlement allowing them to continue distributing Marvel product until October of 1995 (for everyone else, Marvel went exclusive with Heroes World starting in July). In addition, Capital City was able to sign exclusive deals with Kitchen Sink Press
Kitchen Sink Press
Kitchen Sink Press was a comic book publishing company founded by Denis Kitchen in 1970. Kitchen owned and operated Kitchen Sink Press until 1999. Kitchen Sink Press was a pioneering publisher of underground comics, and was also responsible for numerous republications of classic comic strips in...
, TSR
TSR, Inc.
Blume and Gygax, the remaining owners, incorporated a new company called TSR Hobbies, Inc., with Blume and his father, Melvin Blume, owning the larger share. The former assets of the partnership were transferred to TSR Hobbies, Inc....
, and Viz Comics — as well as acquiring the Gary, Indiana-based distributor Friendly Frank's. Nonetheless, by 1996 Capital faced the choice between bankruptcy and selling out.
In July 1996 Capital City was acquired by Diamond. At the time of sale, Capital had over $150 million in annual sales. The purchase price was not disclosed, but the acquisition brought an estimated $50 million in sales revenue to Diamond, and effectively awarded Diamond complete control of the comics distribution system. Most of Capital City's 100 employees in Madison and another 100 in Sparta lost their jobs in the deal, though a few key staff members, including co-founder John Davis, joined Diamond's staff.
After selling Capital, Griepp became an industry consultant in the publishing, retailing, distribution, toy, and educational fields, and since early 2001, has operated ICv2.
Publisher
In 1981, Capital City decided to enter the comic book publishing field as well. Under the name Capital Comics, they launched a black-and-white comics title, NexusNexus (comics)
Nexus is an American comic book series created by writer Mike Baron and penciler Steve Rude in 1981. The series is a combination of the superhero and science fiction genres, set 500 years in the future.-Publication history:...
, a futuristic superhero series by Mike Baron
Mike Baron
Mike Baron is the creator of comic books Badger and Nexus. He lives in Fort Collins, Colorado.-Biography:Mike Baron broke into comics with an illustrated text piece in the 1974 debut issue of Marvel Comics's Comix Book...
and Steve Rude
Steve Rude
-Career:In 1981, Rude became widely known in the comics world when he and writer Mike Baron created Nexus, an independent science fiction comic book with a large supporting cast. For the series, Rude designed a dozen or so distinctive alien races, including the Thunes, the Amphibs, the Quattros,...
, and distributed it through their own system.
Richard Bruning
Richard Bruning
Richard Bruning is an American graphic designer and comics creator who is currently the Senior Vice-President-Creative Director of DC Comics.-Biography:...
was a key part of Capital Comics' staff, acting as Editor-In-Chief and Art Director until the company ceased operation in 1984. Besides Nexus, the other titles published by Capital were Badger
Badger (comics)
The Badger is a comic book character and series created by writer Mike Baron in 1983. The series began publication with the short-lived Capital Comics company before First Comics acquired the title and continued publshing it through the 1980s and early 1990s. The series ended when First Comics also...
and Whisper. In 1984, after publishing only a handful of issues of their three titles, Capital shut down its publishing operation. Its titles were taken over by the new independent publisher First Comics
First Comics
First Comics was an American comic-book publisher that was active from 1983–1991, known for titles like American Flagg!, Grimjack, Nexus, Badger, Dreadstar, and Jon Sable...
.
Titles published
- Nexus — two series, 1981 and 1983, nine issues
- Badger — 1983, four issues
- Whisper — 1983, two issues