Charles & Colvard, Ltd. has reported the completion of a significant asset sale and the cessation of its business operations during its Chapter 11 bankruptcy case.
The company filed a Monthly Operating Report with the U.S. Bankruptcy Court for the Eastern District of North Carolina for the period ending July 31, 2026. The report confirms that the debtor sold its assets on July 1, 2026, and has since ceased operations.
Financial data from the report indicates the company operated at a cash loss during the reporting period. The company reported total cash receipts of $10,525 and total cash disbursements of $10,307 across its operating account (ending balance: $24,143). In a separate account, the company reported a net cash outflow of $6,492, with receipts of $1,516 and disbursements of $18,003.
The company is currently working with counsel to formulate its Chapter 11 Plan. The filing includes a cautionary statement regarding the speculative nature of trading the company's common stock during the bankruptcy process, noting that investors may experience a significant or complete loss.
