Pat McGrath Labs bankruptcy exit plan approved

By Lynsey Barber | Published: 21-Apr-2026
Colour Cosmetics Finance

Brand founder Dame Pat McGrath will hand over her equity in make-up brand Pat McGrath Labs to GDA Luma

Pat McGrath Labs is set to exit bankruptcy after refinancing plans were given the go ahead by a US judge.

The cosmetics brand, founded by MUA Dame Pat McGrath, filed for Chapter 11 bankruptcy protection on 27 January.

A judge in the Southern District of Florida Court approved plans on Friday (17 April) for GDA Luma to take ownership of Pat McGrath Labs.

The approval of the plans “provides a strong foundation for a new phase of creative excellence, operational discipline, innovation-led growth, and sustainable long-term success”, said GDA Luma in a statement.

The investment firm committed $30m of funding for the cosmetics brand in February, and that backing now totals $65m, the firm said, helping Pat McGrath Labs exit Chapter 11 “with a reinforced balance sheet and enhanced financial flexibility to support future success”.

GDA Luma will establish a new holding company for Pat McGrath Labs and Dame McGrath will transfer her equity to GDA Luma.

The investment firm previously said that the founder would remain a significant shareholder.

According to court documents filed on 15 April, the “vast majority” of amendments to an initial plan of reorganisation for the brand “are intended to remove certain consideration to Dame Patricia McGrath under the previously filed draft of the Restructuring Term Sheet”.

McGrath will take on the role of Chief Creative Officer with the newly refinanced company.

The make-up artist is also Creative Director, Cosmetics, for fashion house Louis Vuitton, and spearheaded the launch of its luxury colour cosmetics offering, La Beauté, in August 2025.

Commenting on the exit from bankruptcy, Dame McGrath said: “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.”

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