Charles & Colvard Files for Bankruptcy due to price pressures

Moissanite maker Charles & Colvard, which has faced an ever-increasing amount of competition in the man-made gemstone space in recent years, has filed for Chapter 11 bankruptcy protection. Based in Morrisville, North Carolina, part of the state’s tech-focused Research Triangle region, the company filed Tuesday in U.S. Bankruptcy Court for the Eastern District of North Carolina.The company, which was founded 31 years ago, makes, markets, and distributes Charles & Colvard Created Moissanite, as well as Forever One, its higher end moissanite brand.

Charles & Colvard has operated at a loss for the past three years (2025, 2024, and 2023) and continues to lose money in 2026. In the affidavit, Levin elaborates on the factors that pushed the company into bankruptcy—falling lab-grown diamond and, subsequently, moissanite prices; skyrocketing precious metal prices; and increased competition from companies like Brilliant Earth and Blue Nile.  He wrote, “In the last decade, lab-grown diamonds and gemstones have transformed the diamond industry; consumers have shifted towards lab-grown diamonds and gemstones as a more affordable alternative to natural diamonds in fine jewelry and engagement rings.

“The market has seen a steep increase in consumer demand for lab-grown diamonds and gemstones; however, increasing saturation in the market of companies producing lab-grown diamonds and gemstones continues to drive down the value of these gems.”  Levin also mentioned inflation—which has hurt demand among lower- and middle-income consumers—and the financial and legal difficulties the company has faced, including being delisted from Nasdaq and its arbitration dispute with semiconductor manufacturer Wolfspeed Inc.

In an effort to cut costs, the company laid off employees, reviewed and renegotiated vendor contracts, consolidated its supply chain, and switched to a more “cost-effective” freight partner in 2025.  In the months leading up to its early March bankruptcy filing, the company unsuccessfully tried to secure alternative financing.