by Jeroslyn JoVonn
January 27, 2026
Pat McGrath Labs narrowly missed being auctioned off after submitting for Chapter 11 chapter.
Pat McGrath Labs has pulled its magnificence empire from public sale after submitting for Chapter 11 chapter simply earlier than the sale was set to start.
On Jan. 26, a spokesperson for the make-up model confirmed the Chapter 11 submitting, saying the corporate plans to proceed working whereas working towards long-term stability, WWD reported.
“Throughout this course of, the corporate will proceed operations within the abnormal course of enterprise whereas working to restructure its stability sheet and to forge a path to thrive,” the spokeswoman for Pat McGrath Labs mentioned in a press release. “Pat McGrath Labs stays dedicated to its group, prospects, companions and stakeholders because it continues delivering its signature, high-quality merchandise and culture-defining artistry and innovation.”
The chapter submitting comes simply over a month after studies surfaced of a deliberate public sale for the make-up firm, created by the celebrated editorial and runway make-up artist Pat McGrath. Stories indicated the corporate was up on the market, with Hilco International overseeing an public sale scheduled for Jan. 26.
The deliberate public sale was set to incorporate belongings pledged by Pat McGrath Cosmetics, LLC, and its founder, Dame Pat McGrath. Nonetheless, on Jan. 22, Pat McGrath Labs filed a voluntary Chapter 11 petition within the U.S. Chapter Courtroom for the Southern District of Florida.
The Chapter 11 submitting signifies the corporate has time to revive profitability, because it permits it to proceed working whereas restructuring its debt. Hilco International, the public sale facilitator, has since eliminated Pat McGrath Labs’ itemizing from its web site.
The chapter submitting comes simply over a decade after McGrath launched Pat McGrath Labs in 2015 with Gold 001, a $40 metallic foil that offered out in minutes and set the model’s buzz-driven mannequin. The corporate raised $60 million from Eurazeo Manufacturers in 2018 at a valuation reportedly exceeding $1 billion, however lately has confronted operational struggles, government turnover, and layoffs. As soon as valued far larger, the model’s value has since declined sharply, with Eurazeo quietly exiting its stake and gross sales reportedly totaling about $50 million final 12 months.
Regardless of the corporate’s struggles, McGrath stays in excessive demand, most just lately serving as magnificence director for Louis Vuitton’s La Beauté make-up assortment.
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