Pat McGrath Labs has filed for Chapter 11 bankruptcy

The makeup artist Pat McGrath was a favorite of Taylor Swift, Kim Kardashian and Madonna. Then she became a billion-dollar brand.

Founded by British makeup artist Dame Pat McGrath, the brand celebrated its 10th anniversary in October.

On January 7, it was reported that Pat McGrath Labs would be headed to auction. That is a surprising turn for the brand that was once valued at a billion dollars. Just a few days ago, on January 22nd, the brand filed for Chapter 11 bankruptcy, halting the immediate sale of its assets.

The petition was filed on January 22, and court records indicate the company has estimated liabilities between $50 million and $100 million. In connection with the filing, the company submitted emergency motions for the payment of critical vendors totaling $426,402, as well as a motion to pay employee wages, salaries and other compensation amounting to $689,324.

At its peak, the company was valued at more than $1 billion following a $60 million investment from private equity firm Eurazeo in 2018, though Eurazeo exited its stake in 2021. A subsequent write-down by fellow investor Sienna Investment Managers in 2024 reduced the implied valuation by 88 percent, suggesting a value closer to $174 million. Sienna also indicated plans to exit its investment in 2025.

The bankruptcy filing follows news that the brand had planned to hold an auction of its assets, but that sale has now been indefinitely postponed, WWD reported.