Pat McGrath Labs is no longer under Chapter 11 bankruptcy.
As AFROTECH™ previously reported, the beauty company founded by British makeup veteran Pat McGrath had filed to “restructure its balance sheet and to forge a path to thrive,” according to a company spokesperson. The majority of the debt had resulted from a loan obtained from its lender, GDA PMG Funding, in April 2025, according to Business of Fashion.
Pat McGrath Labs remained in operation throughout the process and had previously been exploring an asset sale before deciding to file for bankruptcy protection in January 2026. Soon after, it was fueled with nearly $30 million in financing from GDA PMG Funding as part of the restructuring, according to a separate article from AFROTECH™. The breakdown included $10 million in new debtor-in-possession financing and $20 million in “post-emergence working capital.”
In a press release shared on April 20, Pat McGrath Labs announced that it is no longer under Chapter 11 protection after receiving $65 million in financing and support from GDA Luma. GDA Luma will hold a controlling equity interest, and McGrath serves as chief creative officer. By following the reorganization plan, the company is now in a “new phase of creative excellence, operational discipline, innovation-led growth, and sustainable long-term success,” the press release mentions.
The focus looking ahead will be on scaling product innovation, strengthening customer engagement, and expanding the company’s global presence.
“Creating beauty that moves people has been my life’s work and that never stops. I will continue pushing boundaries in my role as Chief Creative Officer alongside GDA Luma, and I look forward to the future,” Pat McGrath said in the press release.
Gabriel de Alba, founder and managing partner of GDA Luma, commented:
“Pat McGrath Labs is an iconic brand with extraordinary creative equity and global potential. Our priority has been to stabilize the foundation of the business, implement best-in-class operating disciplines, and invest behind the next phase of sustainable growth while preserving the brand’s legacy of creative excellence.”
