Charles & Colvard Chapter 11 raises concerns for moissanite shoppers
A $1.5 million stalking-horse bid for Charles & Colvard's assets put a hard number on moissanite's brand value. Shoppers now face warranty, inventory and ownership questions.
Charles & Colvard's $1.5 million stalking-horse bid put a hard number on how much value one of moissanite's best-known names still carried after Chapter 11. The sale matters to shoppers and investors because brand ownership, inventory flow and warranty support can shape whether moissanite remains easy to buy and easy to service.
The North Carolina company, founded in 1995 in Research Triangle Park, filed a voluntary Chapter 11 petition on March 2, 2026. A March 3 filing said it was initiating a comprehensive restructuring process, after years of losses: one March 2026 report said the company had operated at a loss in 2025, 2024 and 2023. Bankruptcy papers listed about $19.2 million in assets and $10.5 million in liabilities, a balance sheet that helps explain why substantially all of the business was put on the block.
That sale took shape on April 15, 2026, when Charles & Colvard entered into an Asset Purchase Agreement with Van Lang Jewelry LLC or Jewelry Design Partners LLC. The proposed price was $1.5 million for substantially all assets, structured as a Section 363 stalking-horse bid with a credit bid and offset of DIP financing obligations. The U.S. Bankruptcy Court for the Eastern District of North Carolina approved the stalking-horse designation on April 29, 2026, and court filings later set a final sale hearing for June 22, 2026, at 11:00 a.m. ET.
The numbers are especially stark because Charles & Colvard has long described itself as the original creator and pioneer of lab-created moissanite, a rare gemstone formed from silicon carbide. By April 2, 2024, the company was already shifting its retail message, saying Forever Bright would replace Moissanite by Charles & Colvard as its offering for the price-conscious consumer. It also said Charles & Colvard Direct would be a catalyst for future growth, a sign that the brand was trying to reset its place in a market it had helped define.
By June, the auction suggested the assets had drawn more interest than the opening bid implied. Court filings pointed to a $2.7 million AJS asset sale amid Chapter 11, and later reporting said AJS Creations won the auction for Charles & Colvard. For moissanite buyers, the practical issue is not only who owns the name next, but whether the new owner keeps stones flowing, honors existing promises and preserves the kind of service that turns a lab-grown gem into a trusted purchase.
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