Pat McGrath lands bankruptcy funding and plans 2026 product push

Pat McGrath Labs has secured US$30 million in financing from investment firm GDA Luma to support restructuring amid its Chapter 11 bankruptcy, which it filed at the end of last month. 

GDA Luma committed up to US$10 million in debtor-in-possession financing and at least US$20 million in working capital after Pat McGrath Labs exits Chapter 11.

The funding will allow the luxury makeup brand to keep operating during its bankruptcy process and provide financial support once it emerges from Chapter 11. Once the company exits bankruptcy, GDA Luma will take a controlling ownership stake in the brand.

Under the terms of the deal, founder Pat McGrath will remain a significant shareholder in the company and continue to serve as the brand’s chief creative officer.

GDA Luma says the financing “marks the beginning of a new phase of strong stewardship and long-term growth” for Pat McGrath. The investment firm plans to improve Pat McGrath Lab’s operations while maintaining the brand’s creative direction.

Moreover, the financing announcement notes that Pat McGrath will introduce new products starting in early 2026 to support its sales growth.

Pat McGrath Labs also plans to strengthen relationships with global retail partners as part of its next phase.

Pat McGrath’s “glass skin” porcelain doll makeup look gained viral attention following the Maison Margiela runway show in 2024.“We are committed to strengthening and deepening relationships with key retail partners globally, ensuring aligned growth and long-term shared success,” GDA Luma’s announcement reads.

Innovation focus

Targeting product launches could be a strategic move for the makeup label’s next direction, as past delays in bringing viral runway moments to market may have limited sales opportunities.

In 2024, Pat McGrath debuted a “glass skin” porcelain doll makeup look at a Maison Margiela runway show, which sparked strong online interest. However, the brand waited a year before launching its Glass 001 Artistry Mask for consumers to recreate the viral look, missing the height of consumer demand.