After Filing For Chapter 11 Bankruptcy, Pat McGrath Labs Secures Nearly $30M In New Financing – AfroTech
Pat McGrath Labs has been fueled by nearly $30 million in financing.
As AFROTECH™ previously reported, the beauty company, founded by Pat McGrath, explored an asset sale on Jan. 27, with an auction scheduled for that day, which was later canceled indefinitely. The company filed for Chapter 11 bankruptcy and continued operations during the restructuring process, a spokesperson told Women’s Wear Daily (WWD). The majority of this debt resulted from a loan obtained from GDA PMG Funding in April 2025, according to Business of Fashion.
“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,” the spokesperson 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.”
Retail Dive reports that Pat McGrath Labs has now received $30 million in financing from its lender GDA PMG Funding as part of the organization’s restructuring. The deal includes $10 million in new debtor-in-possession financing and $20 million in “post-emergence working capital.”
Per the outlet, Paladin Management Group is currently serving as the chief restructuring officer. McGrath will transition from CEO to chief creative officer and will still “remain a significant equity owner,” while GDA Luma will hold a controlling equity interest.
“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 will launch a new line of products in the first quarter of 2026, claiming it will drive “renewed creative energy and commercial momentum across categories,” according to Yahoo Finance.
