{"id":257611,"date":"2026-01-26T01:01:08","date_gmt":"2026-01-26T01:01:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/257611\/"},"modified":"2026-01-26T01:01:08","modified_gmt":"2026-01-26T01:01:08","slug":"pat-mcgrath-labs-files-for-chapter-11-bankruptcy-auction-cancelled","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/257611\/","title":{"rendered":"Pat McGrath Labs Files for Chapter 11 Bankruptcy, Auction Cancelled"},"content":{"rendered":"

\n\tPat McGrath<\/a> Labs is filing for Chapter 11 bankruptcy<\/a>, WWD has learned.<\/p>\n

\n\t\u201cDuring this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and to forge a path to thrive,\u201d a spokeswoman for Pat McGrath<\/a> Labs said in a statement. \u201cPat 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.\u201d<\/p>\n

\n\tAs a result, the spokeswoman added that the company\u2019s secured lender\u2019s scheduled auction for the brand\u2019s assets has been postponed indefinitely.<\/p>\n

\n\tIn December, WWD reported<\/a> that Pat McGrath<\/a> Labs was being marketed for sale, with Hilco Global managing the process. The auction was meant to take place on Monday.<\/p>\n

\n\tAt the time, a spokeswoman for Pat McGrath Labs said: \u201cPat McGrath Labs is currently going through restructuring and recapitalization processes with its partners to align its financial framework with the enduring strength and creative leadership of the brand. These processes, expected to be completed in early 2026, along with a strong pipeline of innovation, the commitment of its partners, and the unwavering support of its passionate global community, will allow Pat McGrath Labs to move forward in a productive and healthy environment. The good news is, from the beginning of this year, brand sales are up significantly and Pat McGrath Labs is feeling great momentum going into the new year.\u201d\u00a0<\/p>\n

\n\tAfter decades on the fashion week circuit, pioneering runway looks from studded lips to gilded eyebrows, Pat McGrath launched the makeup line in 2015 with Gold 001<\/a>, a $40 gold, multipurpose pigment. The limited-edition product, sold in a bag full of custom sequins (standard packaging for many products in the line), sold out 1,000 units from her website in six minutes and kicked off a series of product drops.<\/p>\n

\n\tIn 2018, the brand received $60 million in funding from Eurazeo Brands. At the time, industry sources said the firm was estimated to have taken a 5 to 8 percent stake in the business at a valuation of more than $1 billion.\u00a0<\/p>\n

\n\tBut in recent years the brand, sold at both Sephora and Ulta Beauty<\/a>, among others, has struggled with operational challenges and undergone executive changes and layoffs while its valuation is now said to be a fraction of what it once was. A few years ago, Eurazeo quietly sold its stake.<\/p>\n

\n\tThe brand\u2019s sales were around $50 million last year, according to industry sources.<\/p>\n

\n\tMost recently, McGrath created Louis Vuitton\u2019s La Beaut\u00e9 makeup collection as its beauty<\/a> director, raising questions over what that would mean for her brand.<\/p>\n

\n\t\u201cBeing able to build beauty<\/a>, but not just only beauty \u2014 a real world, a planet, basically \u2014 it\u2019s been so much a universe, so much fun,\u201d McGrath said at a press conference earlier this year of creating the La Beaut\u00e9 makeup collection.<\/p>\n","protected":false},"excerpt":{"rendered":"Pat McGrath Labs is filing for Chapter 11 bankruptcy, WWD has learned. \u201cDuring this process, the company will…\n","protected":false},"author":2,"featured_media":257612,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4933,1416,146,85,46,22921],"class_list":{"0":"post-257611","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-entertainment","8":"tag-bankruptcy","9":"tag-beauty","10":"tag-entertainment","11":"tag-il","12":"tag-israel","13":"tag-pat-mcgrath"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/257611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=257611"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/257611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/257612"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=257611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=257611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=257611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}