Charles & Colvard Closing Hong Kong Office

Charles & Colvard, Ltd. is in the process of closing its Hong Kong operations, which are expected to be shut down by the end of September 2008, the company said in a release.

The moissanite maker plans continue to “pursue all of its opportunities in Asia” from the U.S. and service its Asian customers from there.

The company is apparently scaling back operations in face of declining income. Dennis Reed, president and chief marketing officer, called the move “strategic,” adding that it is “aimed at freeing up resources to take on new initiatives.”

Last month, Charles & Colvard’s CEO and chairman Robert S. Thomas resigned. The company did not disclose reason for his sudden departure.

Charles & Colvard's sales have suffered from double-digit decreases in every quarter for the past five quarters. Its net sales in the last quarter fell 41 percent to $3.4 million.