US EditionPublished • loading... • Updated
Pat McGrath Labs Files for Chapter 11 Bankruptcy, Cancels Planned Asset Sale
Pat McGrath Labs will keep operating during restructuring after postponing its asset auction; sales reached about $50 million last year, industry sources said.
- On Monday, Pat McGrath Labs filed for Chapter 11 bankruptcy, WWD reported, and the secured lender’s asset auction planned for January 27 was postponed indefinitely.
- Operational strains and executive turnover left Pat McGrath Labs vulnerable, with layoffs and its valuation plunging to $174 million after Eurazeo Brands invested $60 million in 2018 and sold its stake a few years ago.
- Filing records show over $50 million in liabilities and a $1 million emergency loan request as lawyers said Dame Pat McGrath aims to preserve jobs in Jan. 25 court filings.
- The company expects restructuring processes to be completed in early 2026 as Pat McGrath Labs relies on partners and stakeholders while Dame Pat McGrath continues leading the brand.
- The move echoes wider troubles across fashion and beauty brands, with Pat McGrath Labs filing amid closures like Ami Colé and past consumer demand that sold out 48 units in six minutes.
Insights by Ground AI
15 Articles
15 Articles
Pat McGrath’s Billion-Dollar Beauty Empire Files For Bankruptcy
By Andrea Bossi ·Updated January 26, 2026 Getting your Trinity Audio player ready… 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 Fash…
Coverage Details
Total News Sources15
Leaning Left4Leaning Right0Center3Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 43%
Factuality
To view factuality data please Upgrade to Premium
