Update, April 20, 2026: On Friday, April 17, Pat McGrath Labs exited the Chapter 11 process with a new owner. The news comes after a week of court hearings in a Florida bankruptcy court and two months after the makeup brand secured investment from US-based financial firm GDA Luma.
That same Miami-based investment will now assume control of Pat McGrath Labs via a newly established holding company. As part of the sale, founder and makeup artist Pat McGrath will transfer her equity to GDA Luma but will stay on as chief creative officer—a stipulation of the initial investment agreement back in February. Pat McGrath Labs will also license all intellectual property owned by McGrath to GDA Luma, according to Business of Fashion, who reported on the hearing.
Back in February, GDA Luma agreed to inject $10 million debtor-in-possession (DIP) financing into the brand, which would allow the company to continue operating, reorganize, and pay off debts. It also committed $20 million in “post-emergence working capital” to ensure it has enough cash flow to operate smoothly. While neither party has commented on the sale, the taking over ownership of a company (known as a Section 363 sale) during the Chapter 11 process is often done in order to maximize value as quickly as possible.
“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 a press release at the time of the initial investment news. “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.” We’ve already seen one product—the Lip Sculpt + Shade Contour Duos—launch since that announcement.
In the hearing, the judge told McGrath, who was in attendance, that she was happy that the makeup artist “would be able to continue the legacy and the company that you love.” I’m sure her fans and supporters—and anyone who’s had a chance to play with her innovative products—couldn’t agree more.
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.
