Pat McGrath Labs, the luxury beauty brand founded by legendary makeup artist Pat McGrath, has filed for Chapter 11 bankruptcy.
The move marks a dramatic turn for one of the most influential names in modern cosmetics. The filing allows the company to continue operating while it restructures its finances amid mounting industry and internal challenges.
What it Means
As part of the restructuring process, an auction that had been scheduled to sell the company’s name and assets has been postponed indefinitely due to the bankruptcy filing. The company, however, confirmed it will maintain operations during the court-supervised reorganisation.
Founded in 2015, Pat McGrath Labs quickly became a cultural force in beauty, celebrated for its richly pigmented products, runway-inspired artistry and inclusivity. Its Mothership eyeshadow palettes, retailing at about $128, became status symbols for makeup artists and consumers alike, while its lipsticks were praised for flattering a wide range of skin tones. The brand’s rise was meteoric: in 2018, it received $60 million in investment from Eurazeo Brands and reached a $1 billion valuation in under five years. Eurazeo later exited quietly in 2021.
Despite its continued visibility on fashion runways and social media — including McGrath’s viral glass-skin makeup look at Maison Margiela’s 2024 couture show — the brand has struggled behind the scenes. According to The Business of Fashion, employees described high-pressure working conditions and difficulties sustaining commercial momentum. Notably, consumer demand generated by runway moments often outpaced product availability, with some highly anticipated launches arriving long after interest had peaked.
Challenges
The challenges come even as McGrath’s personal influence in fashion remains strong. In March 2025, she was named creative director of La Beauté Louis Vuitton, the luxury house’s new makeup line, a role widely seen as affirming her status as one of the most powerful creatives in beauty. McGrath continued to balance this high-profile position while steering her own brand through turbulent times.
Industry analysts note that Pat McGrath Labs’ struggles reflect broader shifts in the beauty market. The sector has become increasingly driven by fast virality, influencer cycles and rapid product turnaround — a stark contrast to the slower, artistry-led culture that defined the brand’s early success. S
everal Black-owned and independent beauty brands have faced similar pressures in recent years. Ami Colé recently closed after sales and investor difficulties, while Cover FX announced its shutdown amid tariffs and a challenging global market.
McGrath, who began her career in the 1980s and has worked with icons such as Naomi Campbell since the 1990s, built her reputation on innovation rather than trends. Whether that legacy can carry Pat McGrath Labs through restructuring remains an open question, but few doubt the founder’s enduring impact on global beauty culture.
