Pat McGrath Labs has filed for Chapter 11 bankruptcy. The brand was set to be sold at an asset sale on January 27; this sale has now been postponed. “Pat McGrath Labs announced that it has commenced a financial restructuring under Chapter 11 of the U.S. Bankruptcy Code,” the brand confirms in a statement issued to Allure. “The Company’s secured lender’s scheduled auction for Company assets has been postponed indefinitely.”
The brand, which was founded by legendary makeup artist Dame Pat McGrath, launched in 2015 with a multipurpose gold paint called Gold 001. After the initial success of Gold 001, the line grew to include everything from eye shadow palettes to bullet lipsticks to a “glass glow” face spray inspired by the viral doll skin McGrath created for a 2024 Maison Margiela runway show.
As noted by WWD, Pat McGrath Labs received $60 million in funding from the private equity investment firm Eurazeo Brands in 2018 and was valued at more than $1 billion at that time. In addition to its direct-to-consumer website, the brand was sold at Sephora and Ulta. In the past year alone, it has collaborated with franchises such as Bridgerton and Candy Crush on exclusive product lines and has been responsible for the beauty in many big pop culture moments, such as Taylor Swift’s glittery “Bejeweled” music-video glam. (Swift is also a rumored fan of the brand’s LiquiLust Legendary Matte Lipstick in Elson 4.)
“Everybody was on my case about [starting a brand] for a thousand years,” McGrath told Allure in 2021. “‘Where’s your brand? Where’s your brand?’ Then [with Instagram], I couldn’t avoid them. It was constant torment. Every morning I’d wake up and it was… ‘Where’s your brand, Mother?'” In addition to her work as a makeup artist, McGrath also signed on as creative director for La Beauté Louis Vuitton in 2025.
Chapter 11 bankruptcy is often used by businesses to help them reorganize, restructure, and get a handle on finances to fulfill debts. Pat McGrath Labs isn’t the only beauty brand to have filed Chapter 11; Revlon did so in 2022 and has since emerged. In 2024, Avon filed Chapter 11 to settle talc-based lawsuits, though the filing did not impact the United States branch of the business. Forma Brands, parent company of Morphe and r.e.m. beauty, filed for Chapter 11 in 2023 and exited a few months later, when r.e.m. founder Ariana Grande acquired the brand for around $15 million.
All this to say, the filing does not automatically spell the end of Pat McGrath Labs. For now, you can still purchase Pat McGrath Labs products on its website, Sephora, and Ulta. “During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and to forge a path to thrive,” reads the brand’s statement. “Pat McGrath Labs remains committed to its community, customers, partners, and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation.”
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