Pat McGrath Labs — the 10-year-old beauty brand from iconic makeup artist Pat McGrath — is filing Chapter 11 bankruptcy.
“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,” the brand said in a 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.”
Iris Law, Pat McGrath, and Paloma Elsesser (Getty Images for Victoria’s Secret)
Pat McGrath Labs was founded in 2015 and received a $60 million investment from Eurazeo Brands in 2018. At the time, the brand was said to be worth around $1 billion dollars, with Eurazeo Brands receiving a 5 to 8 percent stake in the company for their investment. However, the beauty brand has struggled since then. According to WWD, Pat McGrath Labs’s valuation has plummeted and as of December 2025, plans were to sell the company via an auction.
At the time, a representative for the company told WWD: “Pat McGrath Labs is currently going through restructuring and recapitalization processes with its partners to align its financial framework with the enduring strength and creative leadership of the brand. These processes, expected to be completed in early 2026, along with a strong pipeline of innovation, the commitment of its partners, and the unwavering support of its passionate global community, will allow Pat McGrath Labs to move forward in a productive and healthy environment. The good news is, from the beginning of this year, brand sales are up significantly and Pat McGrath Labs is feeling great momentum going into the new year.”
The auction has now been postponed indefinitely.
Good news! But if you’re a fan of the brand, you’d be smart to stock up while you still can.
