North Carolina Jewelry Maker Charles & Colvard Files Chapter 11, Owes $10.5M

Charles & Colvard, Ltd., the Research Triangle Park, North Carolina company long known as an exclusive manufacturer and marketer of moissanite, filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Eastern District of North Carolina on March 2, 2026, with filings and press statements listing $19.2 million in total assets and $10.5 million in liabilities, according to reporting by JCK and Law360. Executive board chair Michael R. Levin framed the filing in a company statement: “After thoroughly evaluating our alternatives and considering recent events and the market pressures facing our industry, the company’s board of directors decided that a court-supervised process is the best path forward to make the changes needed to ensure Charles & Colvard’s long-term success,” Levin said in a press release.

In a declaration filed March 3 with the court, Levin attributed the company’s deterioration in part to the lab diamond boom, saying the business “was hurt by the lab diamond boom, somewhat ironic for a company that was arguably ahead of the curve in recognizing the potential of lab-grown gemstones.” The declaration also lists macro pressures, noting that “inflation, economic headwinds, and an evolving competitive landscape have [also] negatively impacted the jewelry and gemstone industry in recent years,” language that the company provided to the court to explain the Chapter 11 decision.

The filings and Levin’s declaration recount a string of corporate and legal setbacks before the petition, including a 2025 delisting from Nasdaq, a proxy battle with activist investor Riverstyx Fund, with which Levin was affiliated, and legal fights with lender Ethara Capital and primary supplier Wolfspeed, which the company notes entered and exited Chapter 11 last year. Those episodes, Levin wrote, contributed to the operational strains that preceded the March 2 filing.

Market and corporate records captured elsewhere diverge on the company’s reported financial ranges: MarketScreener lists Charles & Colvard’s assets and liabilities each in the $1 million to $10 million bracket and shows the company trading under ticker CTHR on OTC Markets at 0.0700 USD with intraday movement up 40.00 percent and a five-day change of +37.25 percent. MarketScreener also documents recent governance moves, including the termination of CEO Don O’Connell effective January 5, 2026, management changes announced January 7, a Dec. 5 declaration of voting results and the resignation of director Neal Goldman, and a November 17 partnership with VideoShops.

Debtor counsel listed in filings and market notices is Hendren, Redwine & Malone, PLLC, with attorneys Rebecca Redwine Grow, Lydia C. Carpenter, Jason L. Hendren, and Benjamin E.F.B. Waller named as representatives. Law360’s coverage notes that the petition and Levin’s declaration are attached to the court filing; those documents and the bankruptcy docket will be required to reconcile the differing asset and liability figures and to identify upcoming deadlines, motions, and any debtor-in-possession financing requests. The Chapter 11 case places Charles & Colvard, its creditors Ethara Capital and Wolfspeed, and the activist history with Riverstyx Fund at the center of a court-supervised effort to reposition a former moissanite pioneer within a market reshaped by lab-grown gemstones, inflationary pressure, and recent corporate governance upheaval.