What Happened to Charles & Colvard? Inside the $2.7M Acquisition by AJS Creations

Is Charles & Colvard going out of business? Who bought the original moissanite pioneer? Following months of financial uncertainty, the fate of the industry’s earliest innovator has officially been sealed.

The U.S. Bankruptcy Court for the Eastern District of North Carolina recently released court documents confirming that AJS Creations, a prominent New York-based lab-grown diamond e-commerce group, has been designated as the winning bidder for the assets of Charles & Colvard (C&C). After filing for Chapter 11 bankruptcy protection just over three months ago, the brand that once defined the diamond-alternative market has found its new home for a purchase price of $2.7 million in cash.

The Collapse of a Category Creator

Charles & Colvard made history as the world’s first company to commercialize moissanite. For decades, it dominated the jewelry landscape by positioning the gemstone as the ultimate high-brilliance, eco-friendly “diamond alternative.”

However, the rapid maturation of lab-grown diamond technology changed the rules of the game. As production scaled globally, the prices of lab-created diamonds plummeted, putting direct and aggressive pressure on the moissanite market. Trapped between shifting consumer preferences and internal operational struggles, Charles & Colvard was forced to file for bankruptcy protection on March 2, 2026, staggering under $10.5 million in debt and citing intense [price pressures from the lab-grown diamond sector].

Inside the $2.7 Million Bidding War

The asset auction saw several rounds of competitive bidding before reaching its conclusion:

• The Stalking Horse Bid: Van Lang Jewelry initially set the floor with a $1.5 million bid. Notably, its affiliate, Jewelry Design Partners (JDP), had already provided debtor-in-possession (DIP) financing to C&C, and former C&C board member Duc Pham had resigned in March to manage JDP.
• The Final Auction: During the court-supervised auction on June 22, AJS Creations emerged victorious with its $2.7 million cash offer, according to [JCK Online]. Light & Star USA placed the second-highest bid, serving as the backup bidder.

On June 25, the bankruptcy court officially approved the sale. Per the agreement, Charles & Colvard will pay a $45,000 break-up fee to Van Lang Jewelry. The transaction is set to officially close by July 7, 2026.

The Retail Powerhouse Behind the Deal

The buyer, AJS Creations, is a massive force in the modern lab-grown diamond sector. It operates a powerhouse portfolio of four prominent digital-first bridal and fine jewelry brands:

• Grown Brilliance
• Clean Origin
• Aether Diamonds
• Von Diamonds

By absorbing Charles & Colvard’s brand equity and IP, AJS Creations further consolidates its footprint. According to court disclosures, the proceeds from the sale will follow a strict lien priority: Van Lang Jewelry holds the first-priority lien on precious metal assets, while Wolfspeed retains the first-priority lien on remaining collateral.

A Structural Shift: Moissanite vs. Lab-Grown Diamonds

Industry analysts view this acquisition as a clear reflection of the structural evolution sweeping the gemstone market. It highlights a growing trend where booming lab-grown diamond companies expand their market share by absorbing legacy jewelry assets.

While it remains to be seen how AJS Creations will reposition and reintroduce the Charles & Colvard brand to modern consumers, one thing is certain: in an industry now dominated by lab-grown diamonds, the market space, pricing, and positioning of moissanite have changed forever.