Pat McGrath Labs cancels auction and files for Chapter 11 bankruptcy

By Lollie Hancock | Published: 26-Jan-2026
Colour Cosmetics Finance

An upcoming public auction to sell the make-up brand’s assets has been cancelled as Pat McGrath Labs, founded by Dame Pat McGrath, submits a Chapter 11 bankruptcy claim

Pat McGrath Labs has filed for Chapter 11 bankruptcy just days before the company’s  assets were set to be held for sale at auction.

The cosmetics brand, founded by Dame Pat McGrath, was set to hold a public auction on 27 January, in which its assets – including collateral pledged by Pat McGrath Cosmetics, LLC and Patricia McGrath (aka Dame Pat McGrath) – would be available to acquire.

However, on 22 January, Pat McGrath Labs submitted a Chapter 11 Voluntary Petition to the Southern District of Florida Court.

The Chapter 11 filing allows the business to remain operational while restructuring debt, and indicates hope of restoring profitability over liquidating assets.

The auction’s facilitator, financial services company Hilco Global, has removed Pat McGrath Labs auction listing from its website.

Cosmetics Business has contacted both Pat McGrath Labs and Hilco Global for comment.

Pat McGrath Labs launched in 2015 by MUA McGrath, debuting with Gold 001 – a metallic foil that sold out within six minutes, setting the precedent for the brand.

It soon became known for its high-performance formulas, pigmented eyeshadows and lip products, garnering celebrity fans such as singer Taylor Swift.

In 2018, the brand received a US$60m minority investment from Eurazeo Brands, leading to a business valuation of over $1b.

However, rumours of trouble at the brand began circulating late last year after McGrath teamed up with luxury fashion house Louis Vuitton to launch its make-up line La Beauté.

McGrath is named as Creative Director, Cosmetics, for the luxury French housebrand.

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