- - Beauty billionaire Pat McGrath files Chapter 11 bankruptcy for brand

Anna Kaufman, USA TODAYJanuary 27, 2026 at 12:18 AM

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Dame Pat McGrath applies make-up to a model during Allure Best of Beauty: The Live Event at Chelsea Industrial on Oct. 19, 2024, in New York City.

After a decade of press powders and sharply pigmented shadow, Pat McGrath Labs is filing for bankruptcy.

The company, founded by namesake makeup artist Pat McGrath in 2015, filed for Chapter 11 bankruptcy on Jan. 22, according to court documents reviewed by USA TODAY. Filing in the Southern District of Florida, the company listed over $50 million in liabilities.

USA TODAY has reached out to McGrath's lawyer for comment.

The makeup company's filing does not, however, mean the death of the legacy brand yet. In a court filing Jan. 25, lawyers for McGrath indicated that the founder wanted to "continue to operate its business in the ordinary course, to preserve the value of its estate, to preserve jobs, and to facilitate its orderly reorganization." In an emergency filing, the company requested approval for a debtor to dole out a $1 million loan to keep the business afloat and pay employees.

Products on display during the PAT McGRATH LABS Unlimited Edition Launch at Sephora Herald Square on Oct. 12, 2017, in New York City.

The bankruptcy filing comes on the heels of news that the company planned to auction off the brand's assets. That auction has now been indefinitely postponed, WWD reports. Chapter 11 bankruptcy, largely viewed as an emergency break for businesses, allows for a company to reorganize with the help of a debtor. In partnership, the debtor and business then develop a plan to pay back creditors over time.

As the company moves toward restructuring, it represents a spectacular fall from stardom for McGrath, who rose from working-class roots to beauty and fashion world royalty. Working at first for other companies, including Armani and Procter & Gamble, the makeup artist cut out on her own in 2015, building a billion-dollar brand under her name.

McGrath, a Dame honored by the British royal family, has done makeup on every major runway. She was the lead makeup artist for the 2025 Victoria's Secret Fashion show and the artist behind the viral, glossy doll-like makeup look on the 2024 Margiela runway. The trend went on to inspire two products for the brand, a setting spray and face mask, both dubbed "Skin Fetish: Glass 001."

Valued as a billionaire in 2018, McGrath's dominance in the beauty sphere is likely to be unchanged by the filing, though the move may reflect a larger trend in the retail makeup industry as consumers turn toward celebrity-backed brands.

This article originally appeared on USA TODAY: Pat McGrath Labs files for bankruptcy, cancels sale of assets

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