Breaking News: Pat McGrath Labs Assets Put On The Market Amid Restructuring
Pat McGrath Labs, the makeup brand founded by legendary artist Pat McGrath, has begun marketing its assets for sale, according to industry sources familiar with the matter.
Sources say Hilco Global is overseeing the process, though the firm has not commented as of publication. The potential sale reportedly includes pledged collateral from both Pat McGrath Cosmetics LLC and Patricia McGrath herself.
A spokesperson for Pat McGrath Labs emphasized that the move is part of a broader financial reset rather than a shutdown.
“Pat McGrath Labs is currently going through restructuring and recapitalization processes with its partners to align its financial framework with the enduring strength and creative leadership of the brand,” the spokesperson said. “These processes, expected to be completed in early 2026, along with a strong pipeline of innovation, committed partners, and the unwavering support of our global community, will allow the brand to move forward in a productive and healthy environment. Notably, sales have increased significantly since the beginning of this year, and the brand is entering the new year with strong momentum.”
Often referred to as “Mother” by her millions of Instagram followers, McGrath launched Pat McGrath Labs in October 2015 with Gold 001, a $40 multipurpose gold pigment packaged in a sequin-filled pouch. The limited-edition release sold out 1,000 units in just six minutes, setting the tone for the highly anticipated product drops that followed. The brand’s full collection officially debuted in September 2017.
In 2018, Pat McGrath Labs secured a $60 million investment from Eurazeo Brands. At the time, industry estimates suggested the private equity firm acquired a 5 to 8 percent stake, valuing the company at over $1 billion. However, the brand has faced mounting operational challenges in recent years, including executive turnover and layoffs. Eurazeo has since quietly exited its investment, and the company’s valuation is now believed to be a fraction of its former peak.
Despite strong brand recognition and distribution through major retailers such as Sephora and Ulta Beauty, industry sources estimate Pat McGrath Labs generated approximately $50 million in sales last year.
Most recently, McGrath was named beauty director for Louis Vuitton’s newly launched La Beauté makeup collection, a high-profile role that reignited questions about the long-term direction of her namesake brand.
“Being able to build beauty—not just beauty, but a real world, a planet—is incredibly exciting,” McGrath said at a press conference earlier this year. “It’s been a universe, and so much fun.”
As Pat McGrath Labs navigates its next chapter, the outcome of its restructuring efforts will be closely watched by both the beauty industry and the brand’s devoted global following.
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