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Pat McGrath Labs has secured approximately $30 million in new financing from its existing lender, GDA PMG Funding, giving the brand added runway as it restructures and sharpens its path forward.
The agreement includes $10 million in debtor-in-possession (DIP) financing and a commitment of at least $20 million in post-emergence working capital, designed to keep operations steady while the company reorganizes its finances.
As part of the deal, founder Pat McGrath will transition from CEO to chief creative officer, allowing her to focus fully on product innovation, artistry, and the brand’s creative direction—where she has long been the driving force behind its global influence.
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Pat McGrath Cosmetics Filing for Bankruptcy
The beauty company, founded by Pat McGrath, explored an asset sale in January, with an auction scheduled for that day, which was later canceled indefinitely. The company filed for Chapter 11 bankruptcy and continued operations during the restructuring process. Chapter 11 allows companies to keep operating while restructuring debts under court supervision.
The majority of this debt was incurred through a loan from GDA PMG Funding in April 2025. The package was approved by a bankruptcy court in Miami, Florida. The approval includes $10 million in new financing for the makeup brand, plus an additional $20 million in working capital after restructuring. The filing came weeks after the company’s secured lender planned to auction its assets, which has now been cancelled.
“During this process, the company will keep operating as usual while restructuring its balance sheet and planning for a stronger future,” a spokesperson said, per WWD. “Pat McGrath Labs is still committed to its community, customers, partners, and stakeholders, and will keep delivering its signature products and innovative artistry.”
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About The Brand
Founded in 2015 and named after British makeup artist Pat McGrath, the brand gained global acclaim for bold pigments and runway artistry. 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. McGrath designed Schiaparelli’s Paris Haute Couture look and is now beauty director for Louis Vuitton’s La Beauté line. Her success highlights the contrast between her creative clit in a crowded, celebrity-driven market.
Commonly known as Pat McGrath Labs, the brand was funded by Eurazeo Brands in 2018 with $60 million, valuing it at over $1 billion (WWD). Last year, sales were around $50 million, per industry sources.
What Next for The Company
GDA Luma will hold controlling equity when things wrap up. Founder Dame Pat McGrath stays on as Chief Creative Officer and significant equity owner, keeping the brand’s artistic leadership and creative DNA intact. The deal also ensures that key vendors receive support and that operations keep running smoothly.
Paladin Management Group will act as the chief restructuring officer. McGrath is stepping back from the CEO role to become chief creative officer but will remain a significant equity owner. GDA Luma will hold controlling equity.
“Pat McGrath Labs is a house built on audacious artistry, cultural relevance, and singular creative vision — shaping modern beauty for over a decade,” per Retail Dive. “GDA Luma’s investing with respect for that legacy, plus operational discipline and strategic perspective of an experienced global investor with a track record of repositioning iconic brands.”
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Pat McGrath Labs will launch new products in Q1 2026, aiming for “renewed creative energy and commercial momentum across categories.”
Main Image: Legendary makeup artist Pat McGrath (Image Source: UrbanGeekz)
