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Compass Diversified Supports Lugano’s Bankruptcy Process

Story Highlights
  • Lugano Holding filed for Chapter 11 bankruptcy on November 17, 2025.
  • Compass Diversified will provide financing, and Lugano will not be consolidated in future financial results.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Compass Diversified Supports Lugano’s Bankruptcy Process

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Compass Diversified Holdings ( (CODI) ) just unveiled an announcement.

On November 17, 2025, Lugano Holding, Inc., a subsidiary of Compass Diversified Holdings LLC, filed for Chapter 11 bankruptcy protection in Delaware. Compass Diversified, as Lugano’s senior secured lender, will provide debtor-in-possession financing to support the bankruptcy process, which aims to maximize value for Lugano’s stakeholders. This development will result in Lugano no longer being consolidated with Compass Diversified’s financial results starting in the fourth quarter of 2025, while the company continues to work on financial restatements and maintain strong performance across its other subsidiaries.

The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Spark’s Take on CODI Stock

According to Spark, TipRanks’ AI Analyst, CODI is a Neutral.

The overall stock score of 53 reflects significant challenges in financial performance, particularly with high leverage and negative cash flows, alongside bearish technical indicators. While the high dividend yield is a positive aspect, the negative P/E ratio and oversold technical conditions suggest caution. Improvement in cash flow management and leverage reduction could enhance the stock’s attractiveness.

To see Spark’s full report on CODI stock, click here.

More about Compass Diversified Holdings

Average Trading Volume: 1,430,693

Technical Sentiment Signal: Sell

Current Market Cap: $432.6M

See more data about CODI stock on TipRanks’ Stock Analysis page.

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