Charles & Colvard, Ltd. undergoes restructuring

Charles & Colvard, Ltd., has recently undergone corporate makeover, as a strategy to control costs and step up the company to profitability. Its Vice President of Finance and CFO, James Braun resigned from his position. Also, four other professionals in the company, some from its marketing and manufacturing divisions, have been asked to leave.

The company noted a 31 percent decline in its sales in the first six months of 2008, effecting a cost cutting approach. The decline was also noticed in the following consecutive quarters of 2007. In July 2008, CEO and chairman Robert Thomas had resigned and was replaced by Dennis Reed.

Amongst the new positions in the company, company controller Neil Boss will take over some of the responsibilities of Braun and will be the new Principal Accounting Officer and Principal Financial Officer for Charles & Colvard. Steven Abate, Vice President of Manufacturing has been appointed Vice President of Operations, and will handle the scope of manufacturing to information technology.

With the new structure, the company is looking at a salary savings of around $1.7 million in 2009, partially offset by $325,000 of severance and consulting fees to be paid in 2009. Management and certain other employees have also agreed to a rollback in salary for three months starting October 1, 2008.