The chief executive and chairman of Charles & Colvard abruptly resigned Monday, generating more uncertainty about the future of the struggling jewel maker.

In a statement released before the market closed, C&C announced that Bob Thomas had stepped down, effective immediately. Frederick A. Russ the lead independent director, will serve as the interim chairman of the board. Dennis M. Reed, the company's president and chief marketing officer, will manage operations.

Thomas, who has led the moissanite gemstone manufacturer since 2000, will serve as a consultant. He was not immediately available for comment.

Wall Street seemed unimpressed. Shares of the company, which traded as high as $25 in December 2005 and fetched more than $5 a year ago, closed Monday at 84 cents, up 6 cents.

Trading under $1 puts the stock in danger of being delisted if it stays that low.

One longtime investor welcomed Monday's announcement.

"They had to take some action," said Irv Frankel of Chestnut Hill, Mass., who said he owns a substantial number of shares.

"The stock price makes it look like it's going out of business."

Last year, the company reported a loss of more than $24,000, and this year sales have continued to wane. In January, Thomas hired a consultant to assess the business and recommend strategic improvements. But the bad news continued.

In May, Charles & Colvard laid off 10 employees. Then it got into a $2.8 million legal battle with one of its former top customers.

Frankel said the company needs new leadership.

"The strategies they have been using didn't work," he said. "Now it's time to find someone different to come in and try a new marketing strategy to find out if there is really a market for this product."

Thomas won't walk away empty-handed. According to a proxy filed with the Securities and Exchange Commission in April, if he left voluntarily after a change in control of the company, he could receive nearly three times his annual salary of $300,000. If Thomas was terminated, he could get one year's pay.