Pat McGrath Labs files for bankruptcy

Pat McGrath Labs has filed for Chapter 11 bankruptcy in the Southern District of Florida, ahead of a previously planned auction of its assets.

The company will continue operating in the ordinary course of business while it undertakes a financial restructuring.

"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," Pat McGrath Labs said.

"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."

The Chapter 11 filing comes just one day before the brand’s assets were scheduled to go to public auction on 27 January 2026, as the company sought a buyer.

The sale, facilitated by Hilco Global, was expected to include assets pledged by Pat McGrath Cosmetics LLC, as well as collateral tied to founder Dame Pat McGrath.

Interested parties had been required to submit bids by 7am PST / 10am EST / 2pm GMT on 26 January, with the auction set to take place via Zoom on 27 January, alongside an option for in-person attendance. That process has now been paused indefinitely.

It comes after the company recently acknowledged that it was undergoing restructuring and recapitalisation efforts with its partners, aimed at aligning its financial framework with the long-term strength and creative leadership of the brand. At the time, a spokeswoman said the process was expected to conclude in early 2026.

Founded in 2015, Pat McGrath Labs rose rapidly to prominence with its bold, artistry-led approach to beauty, becoming known for high-impact eyeshadows, statement lipsticks and runway-inspired launches. Built around a mission of empowerment and self-expression, the brand quickly achieved cult status.

More recently, however, the company has faced increasing operational challenges, leadership turnover and workforce reductions.

Uncertainty around the brand’s future intensified after McGrath was appointed Creative Director of Louis Vuitton’s debut cosmetics line, La Beauté, prompting questions about how the role might affect her involvement in her own brand.

Despite these headwinds, Pat McGrath Labs had said sales increased since the start of 2025, citing "strong momentum heading into the new year".