Pat McGrath’s Once Billion-Dollar Beauty Brand Files Bankruptcy
Pat McGrath Labs, the luxury beauty brand once valued at more than $1 billion, has filed for Chapter 11 bankruptcy protection, as first reported by WWD. The company will continue operating as it restructures its finances, while founder Pat McGrath remains active in high‑profile creative roles across the fashion and beauty industries.
A Once Billion-Dollar Brand Faces Financial Strain
Founded in 2015 by British makeup artist Pat McGrath, the brand quickly built global acclaim for its bold pigments and runway-inspired artistry. In 2018, Eurazeo Brands invested $60 million for a minority stake, valuing the company at more than $1 billion, according to WWD. That investment has since been exited as the brand’s valuation declined.
Industry sources estimate Pat McGrath Labs generated roughly $50 million in sales in 2024. The Chapter 11 filing follows a turbulent period marked by executive turnover, layoffs, and a sharp drop in valuation. Earlier plans to auction the brand’s assets have now been halted.
Chapter 11 Filing and Restructuring Plans
The company filed for Chapter 11 protection in the Southern District of Florida, listing liabilities between $50 million and $100 million, according to Business of Fashion. The filing allows Pat McGrath Labs to continue operating while it works to restructure its debt.
“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,” a spokesperson for Pat McGrath Labs said in a statement. The spokesperson added that the secured lender’s previously scheduled auction of the brand’s assets has been postponed indefinitely.
Pat McGrath’s Ongoing Creative Influence
Despite the bankruptcy, McGrath remains one of the most influential figures in beauty. 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 credit: Getty
