Compass Diversified (CODI), the parent of the 5.11, Boa and Primaloft brands, is reporting that it entered into a second forbearance agreement with its lender group on July 25, 2025, extending the prior forbearance period until October 24, 2025. CODI’s lenders have further increased the amount of availability on the company’s $100 million revolving credit facility, increasing it from $40 million to $60 million during the forbearance period.
CODI originally entered into a forbearance agreement with its lenders on May 22, 2025, in the wake of CODI’s investigation into financial and accounting irregularities at its subsidiary, Lugano Holdings, Inc. The investigation has preliminarily identified irregularities in Lugano’s financing, accounting and inventory practices.
CODI stated that it is focused on completing the investigation, which is progressing in line with expectations, and is actively working to finalize the necessary financial restatements. Importantly, the investigation is focused on Lugano and does not involve other CODI subsidiaries.
“We remain focused on driving strong performance across CODI’s eight other subsidiary companies, all of which continue to operate normally, maintain healthy balance sheets, and collectively generate significant cash flow,” said Elias Sabo, CEO of Compass Diversified. “Our liquidity position remains solid, supported by increased access to capital through our revolving credit facility. We value the ongoing collaboration with our banking partners and bondholders as we work through this process. Our priority remains on maximizing value for all of our stakeholders.”
Image courtesy Lugano/Compass Diversified
