Pat McGrath Labs Files for Bankruptcy as Beauty Brand Seeks Reset

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From Billion-Dollar Glow to Valuation Fade

Founded in 2015 by renowned makeup artist Pat McGrath, the brand once shimmered at the top of the cosmetics world. In 2018, private equity firm Eurazeo invested $60 million, valuing the company at more than $1 billion. Eurazeo quietly exited in 2021 as the brand’s fortunes dimmed.

By 2024, fellow investor Sienna Investment Managers marked down its stake by 88%, implying a valuation closer to $174 million, and signaled plans to exit in 2025. The now-delayed Jan. 27 auction had been designed as part of a broader restructuring effort.

Company representatives told The Business of Beauty in December that the sale would “allow Pat McGrath Labs to move forward in a productive and healthy environment.” For now, that path runs through bankruptcy court.

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