Pat McGrath Labs Is Seeking a Buyer Once More
Pat McGrath Labs is being marketed to prospective buyers through bankruptcy proceedings, only days after GDA Luma said it had secured a controlling stake, The Business of Beauty reports. A bankruptcy judge chose Gordian Group as Pat McGrath Labs’ investment bank, which is seeking an “investment and acquisition opportunity” for the brand, as stated in a presentation viewed by BoF.
Pat Mcgrath looking for a new investment
During the presentation, prospective buyers were told that any transaction must repay debtor-in-possession claims totalling over $60 million, with an additional estimated $70 to $80 million in secured claims. The presentation also highlighted Pat McGrath Lab’s failings as the brand’s sales dropped by more than 50% last year to 29.6 million, from $61.1 million in 2024. Additionally, the makeup brand’s gross profit fell to $17.4 million in 2025, down from $39 million.
Pat McGrath Labs filing for bankruptcy
The makeup brand filed for Chapter 11 bankruptcy on 22 January in the Southern District of Florida, as reported by Indy100. Chapter 11 bankruptcy allows companies to continue operating while they restructure their debts under court supervision. The filing came weeks after it was reported that the company’s secured lender planned an auction of its assets, which has now been cancelled.
The brand received $60 million in funding from Eurazeo Brands in 2018, valuing the company at more than $1 billion, according to WWD. Last year, industry sources said the brand’s sales were around $50 million.
The brand recently announced that it secured a $30 million financing package from the financial firm GDA Luma, according to Business of Fashion.
The package was approved by a Miami, Florida bankruptcy court, which approved $10 million in new debtor-in-possession financing for the makeup brand, plus an additional $20 million in post-emergence working capital, according to a statement.
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