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.
If this news has you revisiting the longtime-loved brand, shop some best-selling Pat McGrath Labs products below.
