CODI outlined a plan to return to compliance with its senior lenders and enacted safeguards following an investigation into Lugano, its embattled high-end jewelry subsidiary. Deliberate and systemic fraud was found, which overstated Lugano’s sales, profits, inventory value, and potential financial liability was kept off the records. Compass noted that no other subsidiary’s financials were affected. Its top priority is to reduce leverage, which is above its covenants at 6x, but excluding Lugano, it should be reduced to 5.6x. When factoring in 2025 adjusted EBIDTA, leverage should be around 5.2x to ... Log in to view full article.