Compass Diversified (CODI), the owner of the 5.11, Boa, Oxo, and Primaloft brands, disclosed on Wednesday, June 24 of its non-reliance on its financial statements for fiscal years 2022 and 2023 amid an ongoing investigation into its subsidiary Lugano Holding, Inc.
This notice follows CODI’s May 7 disclosure concerning non-reliance on its 2024 financial statements.
As previously disclosed and reported by SGB Media, the investigation has preliminarily identified irregularities in Lugano’s financing, accounting and inventory practices.
CODI said that it has focused on completing the investigation, which is “progressing in line with expectations,” and actively working to finalize the necessary financial restatements.
The company stressed that the investigation is focused solely on Lugano and does not involve CODI’s other subsidiaries.
“We remain confident in the performance and integrity of CODI’s eight other subsidiary companies, all of which continue to operate normally, have strong balance sheets and collectively generate substantial cash flow,” said Compass Diversified’s CEO Elias Sabo. “We have ample liquidity and significant access to capital via our revolving credit facility. We continue to work constructively with our banking partners and bondholders to ensure flexibility and stability as we move forward. Our primary focus remains on maximizing long-term value for all stakeholders.”
Image courtesy Lugano/Compass Diversified
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See below for additional SGB Media coverage of Compass Diversified.
EXEC: Boa, Primaloft Parent Faces Lawsuits, NYSE Action as it Addresses Lugano Irregularities
