Pat McGrath Labs launches restructuring as assets marketed for sale

Pat McGrath Labs is undergoing a restructuring as reports suggest the brand's assets are now being marketed for sale.

The process is being managed by Hilco Global and involves pledged collateral from both Pat McGrath Cosmetics LLC and McGrath herself, according to WWD.

A spokesperson for Pat McGrath Labs told the publication: "Pat McGrath Labs is going through restructuring and recapitalisation processes with its partners to align its financial framework with the enduring strength and creative leadership of the brand.

"These processes, expected to be completed in early 2026, along with a strong pipeline of innovation, the commitment of its partners, and the unwavering support of its passionate global community, will allow the brand to move forward in a productive and healthy environment."

Dame Pat McGrath launched her namesake makeup brand in 2015. From eyeshadows to lipsticks, the brand was built on a mission to empower individuals to express their authentic selves. However, in recent years, it has faced operational challenges, leadership changes, and layoffs.

Speculation about the future of the brand was further intensified after McGrath was named Creative Director of Louis Vuitton’s debut makeup line, La Beauté, raising questions about how this role might influence her own brand.

Despite these challenges, the company noted that sales have increased since the start of the year, adding that it is "feeling great momentum going into the new year".

TheIndustry.beauty has contacted Hilco for comment.