Pat McGrath Labs Files for Bankruptcy

Pat McGrath Labs was launched in 2015. Just three years later, it reached unicorn status following an investment from French private equity firm Eurazeo. Ownership shifted over the years, and these changes ultimately led to a sharp decline in the company’s valuation. Eurazeo exited in 2021, with Sienna Investment Managers entering in 2025. According to Essence, this move marked down the stake and brought the brand’s valuation closer to $174 million.

The outlet also reported frequent executive turnover and layoffs. In an interview with The Business of Fashion following his departure from the brand, a former executive said, “The environment that I had stepped into was not exactly what was depicted to me (and in all fairness, I think no one really had the proper grip of the full situation).” Former employees similarly described the workplace as a “chaotic working atmosphere.”

Coupled with broader shifts in the beauty market—where costs are rising, consumer expectations are evolving, and sustained growth is increasingly difficult for brands not built to chase mass trends—Pat McGrath Labs found itself facing mounting challenges.

Come 2026, the brand’s assets were put up for sale, with Hilco Global set to oversee an auction scheduled for January 26. The sale was cancelled less than a week prior. As reported by Yahoo Finance, Pat McGrath Labs filed for a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida on January 22.

“During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and forge a path to thrive,” the brand told WWD in a statement. While it also told The Business of Fashion in December 2025 that sales were up “significantly,” the future of the brand remains uncertain.