Pat McGrath Labs filed for Chapter 11 bankruptcy. The product was to be sold at an auction on January 27; this sale is now cancelled. “Pat McGrath Labs has announced that it has begun financial restructuring under Chapter 11 of the US Bankruptcy Code,” the brand confirmed in a statement. Seduction. “The planned auction by the secured creditor of the Company’s assets has been postponed indefinitely.”
The brand, founded by celebrity makeup artist Dame Pat McGrath, launched in 2015 with a multi-purpose gold paint called Gold 001. After the initial success of Gold 001, the line has grown to include everything from eye shadow palettes to bullet lipsticks to a “glass glow” face spray inspired by Maggith20 Margith’s viral doll show
As noted by WWD, Pat McGrath Labs received $60 million in funding from private equity firm Eurazeo Brands in 2018 and was valued at over $1 billion at the time. In addition to its direct-to-consumer website, the brand was sold at Sephora and Ulta. Last year alone, it partnered with franchises like Bridgerton and Candy Crush in exclusive product lines and has been responsible for the beauty of many major 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 Elson 4.)
“Everybody was in my trouble [starting a brand] a thousand years,” McGrath said Seduction in 2021. “‘Where’s your brand? Where’s your brand?’ Then [with Instagram]I couldn’t avoid them. It was constant torture. Every morning I would wake up and be like… ‘Where’s your brand, Mom?'” In addition to her work as a makeup artist, McGrath also signed on as creative director of 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 pay off debts. Pat McGrath Labs isn’t the only beauty brand to file for Chapter 11; Revlon did that in 2022 and it has already evolved. In 2024, Avon filed for Chapter 11 to resolve the talc-based lawsuits, although the filing did not affect the United States branch of the business. Forma Brands, the parent company of Morphe and rem beauty, filed for Chapter 11 in 2023 and exited a few months later, when rem founder Ariana Grande acquired the brand for an estimated $15 million.
All this to say, inclusion does not automatically spell the end of Pat McGrath Labs. For now, you can still buy Pat McGrath Labs products on its website, Sephora, and Ulta. “Through this process, the company will continue to operate as normal while working to restructure its balance sheet and build a path to prosperity,” the brand’s statement read. “Pat McGrath Labs remains committed to its community, customers, partners and stakeholders as it continues to deliver its signature, high-quality products and craftsmanship that define culture and innovation.”
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