Pat McGrath Labs is no longer exploring an asset sale.
As AFROTECH™ previously reported, Pat McGrath Labs — sold at Sephora and Ulta Beauty and owned by Pat McGrath, a British beauty and makeup veteran and now creative director of La Beauté Louis Vuitton cosmetics line — was exploring an asset sale. Managed by Hilco Global, a U.S.-based financial services firm, bids were due Jan. 26, 2026, with an auction scheduled for Jan. 27.
Founded in 2015, the goal was for the beauty company, valued at more than $1 billion in 2018, to “align its financial framework with the enduring strength and creative leadership of the brand” with partners through restructuring and recapitalization processes, Modaes reported.
“Pat McGrath Labs is currently going through restructuring and recapitalization processes with its partners to align its financial framework with the enduring strength and creative leadership of the brand,” a company spokesperson said in December 2025, according to Women’s Wear Daily (WWD). “These processes, expected to be completed in early 2026, along with a strong pipeline of innovation, the commitment of its partners, and the unwavering support of its passionate global community, will allow Pat McGrath Labs to move forward in a productive and healthy environment. The good news is, from the beginning of this year, brand sales are up significantly and Pat McGrath Labs is feeling great momentum going into the new year.”
A company spokesperson has since confirmed to WWD that the scheduled auction has been postponed indefinitely. Instead, the company has filed for Chapter 11 bankruptcy.
“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 spokeswoman for Pat McGrath Labs said in a statement, 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.”
The announcement and initial consideration to sell follows several operational challenges, including executive turnover and layoffs, as the company’s valuation declined to a fraction of its previous level, according to WWD. Eurazeo Brands, which supported the brand with a $60 million investment for a 5% to 6% stake when it was valued at $1 billion, also sold its stake a few years ago.
In 2024, Pat McGrath Labs reported revenue of $50 million.
