Pat McGrath Cosmetics LLC files for Chapter 11 bankruptcy protection

USA – Pat McGrath Cosmetics LLC has filed for Chapter 11 bankruptcy protection to restructure its global operations and position the iconic beauty brand for future success.​

Pat McGrath Cosmetics LLC, the entity behind the renowned Pat McGrath Labs makeup line, submitted a voluntary Chapter 11 petition on January 22, 2026, in the U.S. Bankruptcy Court for the Southern District of Florida. 

This strategic step addresses liquidity challenges stemming from a tough global market, supply chain disruptions, and heavy obligations to lenders and investors, with estimated liabilities of USD 50-100 million. 

The filing immediately paused an asset auction pushed by secured lender GDA, averting what the company viewed as a rushed, undervalued sale.

The process targets a revamped capital structure, debt reduction, and a solid foundation for growth through potential new funding, reorganization, a sale, or hybrid solutions. Founder Dame Pat McGrath stated, “This Chapter 11 will enable me to remain in the driver’s seat and keep the Company’s vision focused.” 

“For several months, I have acted at the behest of my lenders, but now it’s time to reset, start fresh, and get back on the mission of bringing the highest quality makeup to the marketplace.”

Operations continue under existing management, with commitments to pay vendors normally for new services and preserve employee wages and benefits.

The company plans to seek court approval for a debtor-in-possession financing, such as a USD 1 million loan, to support payroll and day-to-day operations during the overhaul. 

Products remain available at patmcgrath.com and at retailers including Sephora, Ulta Beauty, Nordstrom, Selfridges, and Bergdorf Goodman, underscoring continued customer loyalty. 

Advisors include New York’s Gordian Group as investment banker and Florida’s Pack Law for legal support, with case details on PACER.

Launched in 2015 by Dame Pat McGrath, the world’s most influential makeup artist, Pat McGrath Labs debuted with the instant sell-out GOLD 001 via social media, followed by boundary-pushing collections and collaborations. 

Despite recent layoffs and premium pricing headwinds affecting repeat sales, consumer demand remains strong as the brand navigates this reset.

Pat McGrath Cosmetics LLC offers a full spectrum of luxury makeup products, including lipsticks, lip glosses, foundations, concealers, eyeshadow palettes, eyeliners, mascaras, blushes, highlighters, and setting powders, as well as limited-edition collaborations and skincare.

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