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Compass Diversified Announces Update on Lugano Subsidiary

Compass Diversified (CODI) | November 16, 2025

By Fiona Wilson

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Compass Diversified's subsidiary, Lugano Holding, Inc., has filed for Chapter 11 protection under the U.S. Bankruptcy Code.

CODI supports Lugano's decision as the best path to maximize value for stakeholders.

Lugano will no longer be consolidated with CODI's financial results post-bankruptcy filing.

Chapter 11 Filing

Lugano's Chapter 11 filing for maximized stakeholder value.

CODI's Support

CODI backs Lugano's move towards bankruptcy for value optimization.

Financial Impact

Lugano's bankruptcy excludes other CODI subsidiaries from financial results.

  • The bankruptcy filing for Lugano will have a significant impact on CODI's financial reporting starting in Q4 2025.
  • CODI to provide debtor-in-possession financing to facilitate Lugano's bankruptcy process.

CODI continues its efforts to finalize financial restatement and fulfill necessary SEC filings while concentrating on the long-term strategy to benefit stakeholders.