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**Update: February 18, 2026: **There's been a new development surrounding the future of Pat McGrath Labs. A little over three weeks after filing for Chapter 11 bankruptcy, it was announced that the brand secured a $30 million investment from US-based financial firm GDA Luma, after being approved by a Miami-based bankruptcy court. The funding “marks the beginning of a new phase of strong stewardship and long-term growth,” according to a press release released by GDA Luma.
The transaction injects $10 million debtor-in-possession (DIP) financing into the brand, which will allow the company to continue operating, reorganize, and pay off debts. It also commits $20 million in “post-emergence working capital" to ensure it has enough cash flow to operate smoothly.
As part of the deal, GDA Luma—which focuses on “special situations investment" and “restructuring," according to its website—will continue to hold a controlling interest in the company upon exit. Founder Pat McGrath will transition from chief executive to chief creative officer, retaining a “significant” stake in the brand and thus “preserving the artistic leadership and creative DNA that define the brand," GDA Luma said via press release.
“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 the press release. "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.”
**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; this 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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