Compass Diversified Faces Debt Challenges Amid Alleged Lugano Fraud

Thursday, Dec 4, 2025 7:58 pm ET1min read

Compass Diversified is exploring debt reduction options due to non-compliance with leverage ratio covenants in its credit facility. The firm is in talks with lenders for an amendment to its credit agreement, and is preparing to release restated financial statements for 2022-2024 after discovering irregularities at its Lugano Diamonds & Jewelry subsidiary. Compass anticipates compliance in 2026, but is also exploring options for divesting subsidiaries to accelerate debt reduction.

Compass Diversified Faces Debt Challenges Amid Alleged Lugano Fraud

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