Pat McGrath Labs was a $1B unicorn that had never built a business — Chapter 11 followed

Pat McGrath Labs was founded in 2015 by Dame Pat McGrath, the British makeup artist widely regarded as the most influential in fashion. The brand launched with a single product — Gold 001, a metallic pigment — and grew through limited-edition drops that sold out in hours, propelled by McGrath's reputation and her network of fashion editors and celebrities.

In 2018, Eurazeo Brands invested $60 million for a minority stake, valuing the company at over $1 billion. The business was built entirely on McGrath's creative instinct and personal brand — the company had no professional management team, no operational infrastructure, and no plan for what would happen if the founder's attention shifted. It was a unicorn whose only moat was the founder's time.

In 2025, McGrath took the role of Creative Director, Cosmetics at Louis Vuitton, launching its La Beauté line. With her attention divided, the brand's fragility became visible. Revenue declined, losses mounted, and the company was put up for auction. On January 22, 2026, Pat McGrath Labs filed for Chapter 11 bankruptcy in the Southern District of Florida. A planned auction on January 27 was cancelled.

In February 2026, the distressed-investment firm GDA Luma committed $30 million — $10 million in debtor-in-possession financing and $20 million in post-emergence working capital — later expanded to $65 million by the April 2026 exit. The court approved the restructuring plan on April 17, 2026. GDA Luma took controlling equity; McGrath gave up her ownership stake and became Chief Creative Officer of the refinanced company.