Charles & Colvard made moissanite famous — then cheaper lab stones destroyed it

Charles & Colvard was founded in 1995 as C3 Inc. by Charles Eric Hunter in North Carolina. Under U.S. patent US5723391A, it became the first company in the world to commercially produce and sell lab-grown moissanite — a silicon carbide gemstone that closely resembles diamond at a fraction of the cost. The company went public on Nasdaq and grew to nearly $33 million in annual revenue by fiscal 2019. For years it held an effective monopoly on moissanite jewelry.

By the early 2020s, the moat had evaporated. Competitors flooded the market with cheaper lab-grown diamonds and alternative moissanite products. Charles & Colvard could no longer command premium pricing — its gemstone was now one commodity among many. Revenue declined sharply while losses mounted: $8.8 million in fiscal 2023 and $14.9 million in fiscal 2024. The company owed its largest creditor $10.5 million and had no path to profitability.

In March 2026, Charles & Colvard filed for Chapter 11 bankruptcy protection in North Carolina. The filing confirmed that increased competition from jewelry retailers had inflicted staggering losses since 2023. In April 2026, the company agreed to sell substantially all its assets to Van Lang Jewelry and Jewelry Design Partners for $1.5 million — a fraction of what the company once earned in a single quarter. Shareholders received nothing.