Pat McGrath Labs Secures $30 Million Lifeline
Pat McGrath Labs has landed a $30 million lifeline from GDA Luma, offering a much-needed reset for the artistry-driven makeup brand following its Chapter 11 bankruptcy filing.
A bankruptcy court in Miami has approved the deal, which includes $10 million in fresh debtor-in-possession funding to support day-to-day operations during restructuring, plus a further commitment of at least $20 million in working capital once the company exits Chapter 11. In short: it’s about steadying the ship now, and building toward a more sustainable future.
As part of the agreement, GDA Luma will take a controlling equity stake when the company emerges from bankruptcy. Founder Dame Pat McGrath will remain a major shareholder and move from chief executive officer to chief creative officer, continuing to lead the brand’s creative vision.
The statement reads: “Together, Pat McGrath Labs and GDA Luma are committed to a future defined by uncompromising quality, desirability, and relentless innovation — reinforcing the brand not only as a trendsetter, but as a house that defines the direction of beauty itself.”
The Chapter 11 filing was made in January in Florida’s Southern District, following the prospect of an asset auction by secured lenders. Court documents estimate the company’s liabilities at between $50 million and $100 million.
Pat McGrath Labs, which launched in 2015, built a reputation for runway-inspired colour, high-impact formulas, and viral, limited-edition drops that quickly cultivated a loyal fanbase. The brand reached a peak valuation of over $1 billion after a $60 million minority investment from Eurazeo in 2018, though the firm exited in 2021 and the valuation has since fallen.
The new backing is expected to support a series of product launches beginning in the first quarter of 2026, alongside a tighter focus on rebuilding relationships with key global retail partners. It marks a pivotal moment for a brand long synonymous with boundary-pushing creativity — and a chance to write its next chapter.