If you follow fashion, you know the name. Pat McGrath is the makeup artist behind countless catwalk shows, so famous she was made a Dame in Britain. In 2015 she launched her own brand. It became one of beauty's great success stories. Then, this year, it ran out of money.
Gold in six minutes
Pat McGrath Labs started in October 2015 with one product: Gold 001, a $40 gold pigment you could use on eyes, lips or anywhere else. She made 1,000 of them. They sold out in six minutes. Make-up fans went wild. In September 2017 the full range arrived at Sephora.
The brand became known for glittery, luxurious packaging and very high prices. At its peak, it was valued at more than $1 billion. A billion dollars for eyeshadow. Sounds a lot, until you see what a lipstick costs these days.
The crash
On 22 January 2026, the company filed for Chapter 11 bankruptcy in a court in southern Florida. Chapter 11 is the American kind of bankruptcy where you keep the lights on while you sort out your debts. The estimated debts: between $50 million and $100 million.
The paperwork showed how tight things were. The company asked the court for permission to pay $426,402 to key suppliers and $689,324 in wages to its staff. A lender had planned to auction off the brand's assets, but the bankruptcy filing put that auction on hold. In its statement, the company said it would "continue operations in the ordinary course of business". In plain words: the shops stayed open.
Enter the rescuer
A Miami investment firm called GDA Luma stepped in. In February it put $10 million of emergency financing into the company and promised $20 million more for after the bankruptcy. By April, its total backing had reached $65 million.
On 17 April, a Florida judge approved the plan, and the brand left bankruptcy. GDA Luma now controls the company through a new holding company, and Pat McGrath handed over her shares.
Here's the gossip
There was a twist along the way. At first, GDA Luma said McGrath would stay a big shareholder. But court papers filed on 15 April described changes "intended to remove certain consideration to Dame Patricia McGrath". So the founder lost her stake in her own brand. She stepped down as CEO and became Chief Creative Officer instead. She also kept her other big job, as creative director of makeup for Louis Vuitton, which she took on in 2025.
Her reaction was calm and very on-brand: "Creating beauty that moves people has been my life's work, and that never stops". The new owner, Gabriel de Alba, called it "an iconic brand with extraordinary creative equity and global potential".
Why do hyped brands fall?
None of our sources spell out exactly why the money ran out. But the pattern is familiar in beauty: a brand grows fast on hype and big valuations, spends heavily to stay glamorous, and then has to pay back what it borrowed when sales slow down. Being famous doesn't pay the bills. Customers do.
What it means for you
If you love the products, don't panic. The brand is still selling, and the new owner plans to expand it worldwide. Just maybe don't buy ten of the same palette "before it disappears". This time, it's not going anywhere. Its owner just changed.