31-year-old jewelry brand files for Chapter 1 1 bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

The global jewelry market is expected to continue growing and reach a value of up to $381 billion by 2034. Still, individual companies have fared very differently as many consumers in different parts of the world watch their spending more carefully.

Companies across the fine, demi-fine, and fashion jewelry markets have all struggled. Tween jewelry and accessory giant Claire’s filed for Chapter 11 bankruptcy in August 2025, while Newport-based Lugano Diamonds & Jewelry followed with a bankruptcy filing in November 2025.

With its jewelry sales over the last year seeing some of its biggest double-digit declines, department store giant Saks Global is also in the midst of a high-profile bankruptcy case that signals wider retail trends.

“The best path forward”: Charles & Colvard on bankruptcy filing

The latest jewelry brand to file for Chapter 11 bankruptcy is North Carolina chain Charles & Colvard, JCK reported.

Launched out of Morrisville in the Raleigh-Durham suburbs in 1995, the company went public in 1997 and specializes in lab-grown diamonds and other fine jewelry including engagement rings, wedding bands, and pendants, among other popular pieces.

The bankruptcy, filed in the Eastern District of North Carolina, listed $19.2 million in assets and just over $10.5 million in liabilities. The company brought in $16 million in revenue in 2025 after a record $43.1 million during the Covid pandemic in 2020.

“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,” Executive Board Chair Michael R. Levin said in a press release.

Customer demand for lab-grown diamonds has grown significantly over the last two decades.

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“Steep increase in consumer demand for lab-grown diamonds and gemstones”

The lab-grown diamond market has exploded, reported Marketplace. Although this helped Charles & Colvard win customers in its early days, growing competition is one of the primary reasons behind the company’s waning sales now.

“The market has seen a steep increase in consumer demand for lab-grown diamonds and gemstones,” Levin wrote.

“However, increasing saturation in the market of companies producing lab-grown diamonds and gemstones continues to drive down the value of these gems. Our company has seen increasing competition in e-commerce for consumer fine jewelry (Blue Nile, Brilliant Earth, others).”

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The rising cost of gemstones like moissanite has also seeped into the company’s bottom line in a way that it could not offset by raising prices or bringing in more sales. Charles & Colvard has just one brick-and-mortar store in Morrisville but maintains an online business working with customers and distributors across the country.

Levin confirmed that the company has no plans to close its store or lay off its 60 employees.

“As this process unfolds, the Company remains fully committed to serving its customers, supporting its partners, and preserving the value of its brand,” the statement reads further. “On behalf of the Company’s Board of Directors and leadership, I want to thank our employees and suppliers for their continued dedication.”