Pat McGrath Labs Secures Nearly $30M Funding After Filing For Bankruptcy
Makeup artist label Pat McGrath Labs has secured a $30 million financing package from the financial firm GDA Luma, according to Business of Fashion. The company filed for bankruptcy in a Miami court earlier this year to restructure its debts. The debt came from a loan obtained in April 2025 from GDA, according to the filings.
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.
“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,” it said in the statement.
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.
Pat McGrath’s Ongoing Creative Influence
Founded in 2015 by British makeup artist Pat McGrath, the brand quickly built global acclaim for its bold pigments and runway-inspired artistry.
The British Dame has led makeup on major runways worldwide, including the 2025 Victoria’s Secret Fashion Show. She also created the viral, ultra-glossy “glass” look for Maison Margiela’s 2024 couture show, which inspired the brand’s Skin Fetish: Glass 001 products.
Most recently, McGrath designed makeup for Schiaparelli’s celebrity-filled show during Paris Haute Couture Fashion Week and was named beauty director for Louis Vuitton’s new La Beauté makeup line. Her continued prominence underscores the contrast between her personal creative success and the financial pressures facing non-celebrity-founded prestige makeup brands in an increasingly crowded, star-driven market.
Image: John Phillips/BFC
