Makeup Brand Pat McGrath Labs Files for Chapter 11, Auction Called Off

Makeup Brand Pat McGrath Labs Files for Chapter 11, Auction Called Off

Beauty fans were hit with surprising industry news this week as legendary makeup powerhouse Pat McGrath Labs officially filed for Chapter 11 bankruptcy protection — and pulled the plug on a highly anticipated auction of its assets.

The brand, founded by makeup icon Dame Pat McGrath in 2015 and once celebrated as a billion-dollar beauty unicorn, had been preparing to put its assets up for bid after a slowdown in sales and strategic shifts within the company. But the latest filing means that process has abruptly changed course.

According to court records, Pat McGrath Cosmetics LLC entered Chapter 11 proceedings in Florida, with assets and liabilities both estimated between $50 million and $100 million, and a formal claims process now underway.

The planned public auction, which had been scheduled for late January with bids due earlier this week, was cancelled as part of the bankruptcy move, signaling a strategic pivot in how the brand will manage its restructuring going forward.

Industry insiders say the filing doesn’t automatically mean the iconic makeup line is shutting down — Chapter 11 allows the company to continue operating while it reorganizes its finances and explores options to stabilize the business.

What was once one of beauty’s buzziest indie successes — known for its richly pigmented palettes and trend-setting product drops — now faces a critical reset as the market and competition evolve. Stay tuned as more details emerge on how this legacy brand will navigate its next chapter.