Update, April 20, 2026: On Friday, April 17, Pat McGrath Labs exited the Chapter 11 process with a new owner. The news comes after a week of court hearings in a Florida bankruptcy court and two months after the makeup brand secured investment from US-based financial firm GDA Luma.
That same Miami-based investment will now assume control of Pat McGrath Labs via a newly established holding company. As part of the sale, founder and makeup artist Pat McGrath will transfer her equity to GDA Luma but will stay on as chief creative officer—a stipulation of the initial investment agreement back in February. Pat McGrath Labs will also license all intellectual property owned by McGrath to GDA Luma, according to Business of Fashion, reports on the hearing.
In February, GDA Luma agreed to inject $10 million debtor-in-possession (DIP) financing into the brand, which would allow the company to continue operating, reorganize, and pay off debts. It also committed $20 million in “post-emergence working capital" to ensure it has enough cash flow to operate smoothly. While neither party has commented on the sale, taking ownership of a company (a Section 363 sale) during Chapter 11 is often done to maximize value as quickly as possible.
“Together, Pat McGrath Labs and GDA Luma are committed to a future defined by uncompromising quality, desirability, and relentless innovation—reinforcing the brand not only as a trendsetter, but as a house that defines the direction of beauty itself,” GDA Luma said in a press release at the time of the initial investment news. "The company looks forward to an exciting pipeline of product launches beginning in the first quarter of 2026, driving renewed creative energy and commercial momentum across categories.” We've already seen one product—the Lip Sculpt + Shade Contour Duos—launch since that announcement.
At the hearing, the judge told McGrath, who was in attendance, that she was happy the makeup artist “would be able to continue the legacy and the company that you love.” I’m sure her fans and supporters and anyone who’s had a chance to play with her innovative products couldn’t agree more.
Original Story: Published January 26, 2026: Pat McGrath Labs has filed for Chapter 11 bankruptcy. The brand was set to be sold at an asset sale on January 27; the sale has now been postponed. “Pat McGrath Labs announced that it has commenced a financial restructuring under Chapter 11 of the US 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 shade 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.
Clearly, this filing does not spell the end of Pat McGrath Labs. For now, you can still purchase the brand's 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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