| Industry | Comics |
|---|---|
| Founded | 1980; 45 years ago (1980) inMadison, Wisconsin, U.S. |
| Founder | Milton Griepp, John Davis |
| Defunct | 1996; 29 years ago (1996) |
| Fate | Acquisition byDiamond Comic Distributors |
| Headquarters | Madison, Wisconsin |
Key people | Griepp, Davis,Richard Bruning |
| Revenue | $150 million (1996) |
| Subsidiaries | Capital Comics |
Capital City Distribution was aMadison, Wisconsin–basedcomic bookdistributor which operated from 1980 to 1996 when they were acquired by rivalDiamond Comic Distributors. Under the nameCapital 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 AmericanMidwest's comics distribution market. More so than their rivals Diamond andHeroes World Distribution, Capital City supported independent publishers as much as big mainstream companies likeDC Comics andMarvel Comics.[1]
Capital City also published over 400 pages of printed material a month, includingInternal Correspondence, which provided sales figures to their clients; andAdvance Comics,[2] their monthly catalog showcasing upcoming comic books, toys, and other pop-culture related items it distributed to comic book specialty shops.
In the 1970s,Milton Griepp and John Davis were running a small Madison-based distributor calledWisconsin Independent News Distributors (WIND). Forced to sell their assets toBig Rapids Distribution, Griepp and Davis later turned the tables in 1980 when they took over much of Big Rapids' bankrupt business to form Capital City.[2][3]
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 become the nucleus of an early distribution branch. In 1982, Capital City acquired the Berkeley, California-basedCommon Ground Distributors, which had been started byRobert Beerbohm in the late 1970s (and had been initially supplied by Big Rapids).
Capital City's Wisconsin location was relatively nearWorld Color Press's main printing plant inSparta, Illinois. During that period World Color printed most American comic books, including those of the two industry giantsMarvel andDC.[4] By 1982, Capital City operated out of a large warehouse in Madison that they shared with their largest account,mail-order retailer Westfield Comics.[4][3]
Griepp became Capital City's CEO in 1984.[2] That same year, with the demise of one of the larger independent publisher/distributors,Pacific Comics, Pacific's distribution centers and warehouses were purchased by Capital City and rival distributorBud Plant Inc. Capital City also opened an expanded facility inSparta, Illinois, in the old space of another defunct rival,Sea Gate Distributors, alongside the comic-book printing plant.[5]
By 1988, Capital City and its main surviving rivalDiamond Comics Distributors had control of at least 70% of the comics distribution market between them.
Capital was large enough to host its own name-brandedtrade shows in 1993–1994, which were held in early May of both years.
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.[6]
By this point, Capital City's Canadian affiliate, STV, had warehouses in Toronto, Montreal, and Quebec City, and Capital City had another freight forwarder operating out of Seattle, Washington.[citation needed]
1995 saw a major restructuring of the direct market distribution system, caused by Marvel Comics's late-1994 purchase of third-ranked distributorHeroes World Distribution and decision to distribute its titles in-house.[7][8] 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 Davis and Griepp,[9]Dark Horse Comics andImage 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 1995[10] (for everyone else, Marvel went exclusive with Heroes World starting in July).[11] In addition, Capital City was able to sign exclusive deals withKitchen Sink Press,TSR, andViz Comics—as well as acquiring the Gary, Indiana-based distributor Friendly Frank's.[12] Nonetheless, by 1996 Capital faced the choice between bankruptcy and selling out.
In July 1996 Capital City was acquired by Diamond.[13] At the time of sale, Capital had over $150 million in annual sales.[2] 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.[7] Most of Capital City's 100 employees in Madison and another 100 in Sparta lost their jobs in the deal,[14] though a few key staff members, including co-founder John Davis, joined Diamond's staff.[15]
After selling Capital, Griepp became an industry consultant, and since early 2001, has operatedICv2 ("Internal Correspondence vol. 2"), an online trade magazine covering "geek culture".[2]
In 1981, Capital City decided to enter the comic book publishing field as well. Under the nameCapital Comics, they launched a black-and-white comics title,Nexus, a futuristic superhero series byMike Baron andSteve Rude, and distributed it through their own system.[5]
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. BesidesNexus, the other titles published by Capital wereBadger andWhisper. In 1984, after publishing only a handful of issues of their three titles, Capital shut down its publishing operation.[16] Its titles were taken over by the new independent publisherFirst Comics.
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