Updated February 19, 2026: When the news of Pat McGrath Labs’ bankruptcy broke, it sent shockwaves through the beauty community, but now things are looking up for the makeup artist-founded brand. According to reports, the company has recently received a $30 million investment from GDA Luma to aid in its Chapter 11 bankruptcy filing.
As a private equity firm specializing in distressed-for-control debt and special situations, GDA Luma has agreed to inject $10 million into Pat McGrath Labs. This will manage the day-to-day operations, ensuring the brand stays afloat during its restructuring period. The additional $20 million from the creditor will be used as working capital once the bankruptcy closes.
Per their agreement, GDA Luma will hold a controlling equity stake in the company post-bankruptcy, while Pat McGrath will remain a majority shareholder. Another integral move shifts McGrath’s title from chief executive officer to chief creative officer. In this role, she’ll lead the creative aspects and ensure its artistry is preserved.
The funds mark a huge step forward for the legendary makeup artist’s brand, and even suggest a new phase is on the horizon. Yes, the partnership is a strategic move, and securing millions of dollars in aid is crucial during a Chapter 11 bankruptcy, but it’s clear that GDA Luma and McGrath are working together to maintain the legacy of Pat McGrath Labs.
An official statement reads that “reinforcing the brand not only as a trendsetter, but as a house that defines the direction of beauty itself,” is an essential part of the agreement between the two.
Original article published January 26, 2026: Pat McGrath Labs has been the subject of industry chatter for months, and not because of a new product launch. Rumors of discontinued favorites and even a potential shutdown have been swirling, and on Sunday evening, Women’s Wear Daily reported that the brand has filed for Chapter 11 bankruptcy.
The makeup brand, founded and helmed by legendary makeup artist Pat McGrath, was set to hold an auction on January 27 to sell its assets. That auction has since been postponed indefinitely. According to Business of Fashion, the sale was intended to be part of a broader restructuring effort. Representatives for the company said the move would “allow Pat McGrath Labs to move forward in a productive and healthy environment.”
Under Chapter 11 bankruptcy protection, the brand can continue normal business operations while working to develop a plan for its creditors. In practical terms, that means Pat McGrath Labs products will remain available, at least for the time being.
Recent filings suggest efforts to stabilize the business are ongoing. On Sunday, January 25, the company submitted an emergency motion seeking a loan of more than $1 million to pay critical vendors. The funds would be used to cover employee wages and salaries and help keep the business operating during the restructuring process.
Founded in 2015, Pat McGrath Labs quickly became a powerhouse in the beauty world, fueled by the makeup artist’s decades-spanning career across runways, fashion campaigns, music videos and editorial shoots. Known for bold pigments and boundary-pushing launches, the brand was once valued at more than $1 billion.
In the meantime, Pat McGrath Labs appears to be operating much as it always has. On social media, the brand has continued to share behind-the-scenes content from Schiaparelli’s Haute Couture Spring 2026 presentation in Paris, where McGrath led makeup for the runway.
