Compass Diversified Holdings (NYSE: CODI) has extended its forbearance agreement with its lenders until October 24, 2025, following an investigation into financial and accounting irregularities at its subsidiary, Lugano Holdings, Inc. Initially identified in May 2025, these irregularities involve Lugano's financing, accounting, and inventory practices. As a result, CODI's lenders have increased the availability on the company's $100 million revolving credit facility from $40 million to $60 million during the forbearance period. CODI emphasizes that the investigation is limited to Lugano and does not affect its other subsidiaries, which continue to operate normally and maintain healthy financials. CEO Elias Sabo reiterated the company's commitment to resolving the issues and prioritizing stakeholder value.