Charles & Colvard Is Gone: What Its $2.7M Bankruptcy Sale Actually Means for Your Moissanite Ring

By Daniel Carter, GIA-trained gemologist · Updated July 9, 2026

Is Moissanite Still Safe to Buy?

Short answer: yes. Charles & Colvard, the company that invented and for years exclusively sold moissanite, filed for Chapter 11 bankruptcy in March 2026 and sold its assets for $2.7 million to AJS Creations (the company behind Grown Brilliance) in a court-approved deal that was required to close by July 7, 2026, just two days before I sat down to write this. That part is confirmed, not a rumor.

But moissanite the gemstone isn't going anywhere. Charles & Colvard lost its exclusive patent on moissanite back in 2015, which means dozens of labs and jewelers (Driona included) have been growing and selling it independently for almost a decade now. One company's bankruptcy doesn't shut down a whole gem category. What actually changed is who owns the Forever One name, and what that means if you already have a ring with their stone in it. I'll walk through the timeline, then give you my honest read on whether moissanite is still worth buying in 2026.

What Actually Happened to Charles & Colvard?

Here's the sequence, straight from the court filings (sources linked below):

• March 2, 2026: Charles & Colvard files for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of North Carolina, listing $19.2 million in assets against $10.5 million in debts.
• Background: revenue had fallen from an all-time high of $43.1 million in 2022 (the pandemic jewelry boom) to just $16 million in fiscal 2025. The company hadn't had a CEO since Don O'Connell left in January 2026.
• April 29, 2026: the court approves Van Lang Jewelry/Jewelry Design Partners as a $1.5 million stalking-horse bidder.
• June 22, 2026: at auction, AJS Creations outbids everyone with a $2.7 million all-cash offer. Light & Star USA comes in second as backup bidder.
• June 25, 2026: the Bankruptcy Court approves the AJS deal. Van Lang gets a $45,000 break-up fee for losing the stalking-horse spot.
• July 7, 2026: outside closing deadline for the sale (subject to standard extensions).

Per the company's own chair, the bankruptcy came down to a squeeze from both sides: lab-grown diamond prices collapsed so fast that moissanite lost its price edge, while gold costs climbed. Add a 2025 Nasdaq delisting and a proxy fight, and you get a company that couldn't hold on. None of that is a knock on the gemstone. It's a story about one company's balance sheet.

Who Is AJS Creations, and Why Did They Want a Bankrupt Moissanite Brand?

AJS Creations isn't a random private-equity shop flipping distressed assets. It already owns four digital-first lab-grown jewelry brands: Grown Brilliance, Clean Origin, Aether, and VonDiamonds. Buying Charles & Colvard rounds out that portfolio with the one name that basically invented the diamond-alternative category.

In an exclusive comment to The Jewelry Wire, AJS CEO Tejas Shah said the plan is to keep it separate, not fold it into an existing brand: "We are going to operate it as a standalone brand. It has created its name as the founder of moissanite and there is still high search demand for it. We believe it will be a good brand to our portfolio, servicing a different product segment." That's the clearest signal yet that Charles & Colvard's actual brand and moissanite line are meant to keep operating, not get quietly shut down.

Does This Mean Moissanite Itself Is Disappearing?

No, and this is the myth I want to bust directly. Charles & Colvard held an exclusive U.S. patent on gem-quality moissanite from when it went public in 1997 until that patent expired in 2015. After that, it introduced its own "colorless" line called Forever One (now IGI-graded) to differentiate itself from the flood of competitors who could suddenly grow and sell the same stone. So for over a decade now, moissanite hasn't belonged to one company. It's a broader category, the same way "lab-grown diamond" isn't owned by any single grower.

I'll be honest: I've always thought the Forever One grading push was more of a marketing moat than a quality one. Well-cut moissanite performs almost identically regardless of whose name is on the certificate, and we've covered that rainbow "fire" effect people either love or hate in our breakdown of how cut affects sparkle. Bankruptcy doesn't change the physics of the stone. It changes who's selling you the story around it.

If You Already Own Charles & Colvard or Forever One Moissanite, What Happens to Your Warranty?

Straight talk: as of publish date, there's no official consumer-facing statement from Charles & Colvard or AJS Creations about existing warranties. SEC filings say operations are "expected to continue in the ordinary course," which is reassuring, but it's not a specific guarantee.

My advice if you own a Forever One or Charles & Colvard piece: find your original certification and receipt now, while it's easy. Contact AJS Creations once the sale closes and ask, in writing, whether warranty terms transfer. Your stone hasn't changed. Moissanite doesn't degrade or cloud the way some assume (see our piece on why some lab-grown stones look hazy). What's uncertain is the paperwork, not the gem.

Should You Still Buy Moissanite in 2026? A Gemologist's Take

Yes, but with a caveat I didn't expect to be giving three years ago. Lab-grown diamond prices have dropped 50 to 70% since 2021. A 1-carat, D-color, VS1, ideal-cut lab diamond that would've run you $3,000 to $5,000 a few years back can now be found for under $1,500. Moissanite is typically still 10 to 20% cheaper than a comparable lab diamond, but that gap has narrowed enough that the decision isn't as automatic as it used to be.

Where moissanite still wins: durability (9.25 on the Mohs scale, tougher than diamond's 10 in practical wear resistance for typical daily use), that extra fire and rainbow dispersion some people genuinely prefer, and a lower entry price if budget is the deciding factor. Where lab diamonds have caught up: resale expectations, broader certification standards (GIA and IGI both grade lab diamonds; moissanite grading is thinner and less standardized across brands), and, frankly, cultural cachet if that matters to you. If you want the specifics on how to weigh those two against each other for an actual ring, our lab-grown diamond and moissanite buyer's guide goes deeper than I have room for here.

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Moissanite vs. Lab-Grown Diamond in 2026: What This Sale Actually Changes About the Math

Short version: not much, materially. The Charles & Colvard sale is a corporate ownership change, not a supply shock. Here's how the two stack up right now:

If you'd already decided on moissanite, nothing here should change your mind. If you were on the fence, this is a good moment to compare a lab-grown option in the exact same setting.

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Frequently Asked Questions

Is Charles & Colvard going out of business?

Not entirely. Charles & Colvard filed for Chapter 11 bankruptcy in March 2026 and sold its core assets to AJS Creations for $2.7 million, but the buyer has stated it plans to keep running Charles & Colvard as a standalone brand rather than shutting it down.

What happened to Charles & Colvard's bankruptcy?

Charles & Colvard filed Chapter 11 on March 2, 2026, citing falling moissanite and lab-grown diamond prices along with rising gold costs, and its assets were sold at a court-supervised auction to AJS Creations for $2.7 million, with the sale required to close by July 7, 2026.

Who bought Charles & Colvard?

AJS Creations, the company behind lab-grown jewelry e-tailer Grown Brilliance (plus Clean Origin, Aether, and VonDiamonds), won the bankruptcy auction with a $2.7 million cash bid and plans to operate Charles & Colvard as a separate, standalone brand.

Will my Charles & Colvard or Forever One moissanite warranty still be honored?

There's no official public statement confirming warranty terms as of this writing, so the honest answer is: probably, but verify it yourself. Keep your original certification and receipt, and contact AJS Creations directly once the sale fully closes to confirm in writing.

Is moissanite still a good choice for an engagement ring in 2026?

Yes, moissanite is still a solid choice if budget and extra sparkle matter most to you, though the price gap with lab-grown diamonds has narrowed enough in 2026 that it's worth comparing both before you decide.

What's the difference between moissanite and lab-grown diamonds now that lab diamond prices have dropped?

Moissanite is still typically 10 to 20% cheaper than a comparable lab-grown diamond and has more fire (rainbow flash), while lab-grown diamonds now offer more standardized certification and a stronger resale outlook, since lab diamond prices have fallen 50 to 70% since 2021 and closed much of the old price gap.

Sources: JCK: Charles & Colvard Files for Chapter 11 · StockTitan: CTHR 8-K, AJS $2.7M Asset Sale · SEC EDGAR: Original 8-K Filing · TipRanks: Stalking Horse Bidder Approved · TipRanks: Asset Sale Pursued Amid Chapter 11 · The Jewelry Wire: Grown Brilliance Owner Wins Control · Grown Diamonds: Inside the $2.7M Acquisition · Charles & Colvard IR: Restructuring Announcement · National Jeweler: Early Stalking-Horse Coverage · IGI: International Gemological Institute