Pat McGrath Labs has secured approximately $30 million in new financing and will continue to operate while undergoing a restructuring process, a company spokesperson confirmed to Women’s Wear Daily (WWD).
This marks a new chapter following its Chapter 11 bankruptcy filing on January 22. The beauty brand, founded by Pat McGrath, previously shared that its filing was to “simplify its capital structure, reduce its debt load and unlock the potential of this brand,” the New York Times reported. Business of Fashion reports that most of the brand’s debt comes from a loan obtained from GDA PMG Funding in April 2025.
“During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and to forge a path to thrive,” a spokesperson for the company said, according to WWD. “Pat McGrath Labs remains committed to its community, customers, partners, and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation.”
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Now, according to Retail Dive, Pat McGrath Labs is moving forward with its restructuring after securing the $30 million financing package from its lender, GDA PMG Funding. The deal includes $10 million in new debtor-in-possession financing and $20 million in “post-emergence working capital.”
According to the report, Paladin Management Group has taken the lead as the chief restructuring officer to guide the company through this transition.
As part of the new structure, Pat McGrath will step down as CEO to become the Chief Creative Officer, allowing her to focus on the brand’s artistic vision. While GDA Luma will now hold a controlling stake in the company, McGrath will still “remain a significant equity owner.”
According to a report by BET, this funding renewed a sense of hope for the luxury cosmetics brand, which reached a $1 billion valuation back in 2018. McGrath’s legacy is built on her legendary work with icons like Beyoncé and Naomi Campbell and fashion brands like Gucci and Versace.
Her brand changed the game by prioritizing lush formulas for deeper skin tones when the rest of the industry looked away. With this new financial backing, fans can likely expect fresh drops and bold collaborations that continue to challenge the beauty industry’s status quo.
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“Pat McGrath Labs is a house built on audacious artistry, cultural relevance, and singular creative vision; one that has shaped the modern beauty conversation for over a decade,” according to a press release, per Retail Dive. “GDA Luma undertakes this investment with profound respect for that legacy, combined with the operational discipline and strategic perspective of an experienced global investor with a proven track record of repositioning iconic brands for enduring success.”
Looking ahead, Pat McGrath Labs is preparing to launch a fresh line of products in the first quarter of 2026.
According to Yahoo Finance, this rollout is expected to inject “renewed creative energy and commercial momentum” into the brand, signaling a major push to recapture its influence across the beauty industry.
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McGrath is a makeup artist who has worked across the globe with various icons such as Oprah Winfrey, Naomi Campbell, Rihanna, and multi-million dollar fashion brands, making up models for the runways and high-ranking fashion magazines.
She was born in Northampton to a single mother and a first-generation Jamaican immigrant before she later moved to South London.
She broke onto the scene in the 1980s after a few stints in London’s colorful nightlife scenes. It was during that time that she met Kim Bowen and the then director of British Vogue, Edward Enningful, who named her the beauty director at i-D magazine.
McGrath was inspired to establish her own cosmetic beauty line, Pat McGrath Labs, in 2015 with the hopes of providing a brand that was usable on black skin.
On July 16, 2018, WWD announced that the iconic beauty brand mogul had bagged a 60 million dollar investment deal with Eurazeo Brands, an investment division of a global investment firm. The huge investment deal for the Jamaican-British makeup mogul skyrocketed her worth to 1 billion dollars.
