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While Comico had proven to be a serious contender as a major independent comic company, a mid-1986 decision to distribute to the newsstand market spelled the end of the comic company.This significantly raised the number of prints for each issue, but also increased the number of issues being sent back that did not sell. Refunds for those returned issues ate into the publisher's budget very quickly (and, among other things, they had trouble paying their printing bills).In response to this, Comico began to push out a number of new titles, aimed at spreading out the number of returned comics between various titles.In 1988 they began distributing their titles to the bookstore market,and in 1989 partnered with DC Comics to distribute their comics to a wider market.Despite these measures, however, and with the end of the Mage, Grendel and Robotech series, much of the reliable revenue for the company dried up. Many of the company's long-time artists and publishers jumped ship and, by 1989, Comico had cancelled half its titlesand was deep into bankruptcy. (Fish Police and Trollords were picked up by Apple Comics, while The Trouble with Girls was acquired by Malibu Comicsand The Maze Agency went to Innovation Comics.) Comico suspended operations in 1990,with E-Man #3.

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