Pat McGrath Labs has had a rocky past few months, and Monday, WWD reported the cosmetics brand is filing for Chapter 11 bankruptcy.
PML was supposed to have an auction, selling its assets, on January 27. It was reportedly going through “restructuring and recapitalization processes” since at least December 2025, according to what a spokesperson told Business of Fashion. Now, that’s all called off.
“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. Of course, PML doesn’t want customers getting too much wind of this. Founder, CEO, and legendary makeup artist Dame Pat McGrath has still been posting products and inspiring makeup looks on her feed and stories via Instagram.
The makeup brand, founded in 2015, was valued at $1 billion only eight years ago after an investment from French private equity firm Eurazeo. Since then, it’s changed hands and plummeted in value, to an estimated $174 million at present. Part-European asset manager Sienna Investment Managers currently has a minority stake in PML.
Over the years, PML has had a rocky internal trajectory, with high turnover in its leadership, in addition to layoffs. Despite filing for Chapter 11 bankruptcy, the brand claimed to BoF in December 2025 that its sales were up “significantly” over the course of 2025.
News about PML filing for bankruptcy comes in the wake of brands across fashion and beauty are struggling, including Saks Global’s bankruptcy filing. Black-owned brands in particular have been hit hard, as with beloved beauty brand Ami Colé that closed in the summer of 2025.
“Pat McGrath Labs remains committed to its community, customers, partners, and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation,” the brand continued in its statement. McGrath, who became the creative director of Louis Vuitton’s makeup line that launched in August 2025, will continue leading her eponymous brand.