Pat McGrath Labs Exits Bankruptcy With a New Owner

Pat McGrath Labs is officially entering a new chapter. The industry-beloved beauty brand has successfully completed its Chapter 11 restructuring process and emerged with a new majority owner, investment firm GDA Luma, signaling a reset focused on long-term growth and creative evolution.

GDA Luma confirmed that the company has exited bankruptcy with a strengthened financial position, backed by more than $65 million in financing provided throughout the restructuring. The move gives the brand a reinforced balance sheet and greater flexibility to invest in its next phase.

Behind the scenes, the company has already begun laying the groundwork for that future. Investments in supply chain operations and its commercial infrastructure have improved inventory flow and execution, allowing the brand to better meet rising global demand. At the same time, Pat McGrath Labs has strengthened relationships with key retail and vendor partners, maintaining stability across the business during the transition.

Early indicators suggest momentum is building. The brand reports accelerating sales, improved retail performance, and renewed energy across its operations—all while continuing to prioritize category-defining innovation and elevated customer experiences.

As part of the restructuring, GDA Luma now holds a controlling stake and will work closely with leadership to sharpen strategy, streamline operations, and guide the brand into a more disciplined, growth-oriented era.

Importantly, Pat McGrath remains at the creative helm. The legendary makeup artist will continue as chief creative officer, ensuring the brand’s visionary DNA stays intact.

“Creating beauty that moves people has been my life’s work and that never stops,” McGrath said. “I will continue pushing boundaries in my role alongside GDA Luma, and I look forward to the future.”

GDA Luma’s founder and managing partner, Gabriel de Alba, emphasized the brand’s long-term potential, describing it as “an iconic brand with extraordinary creative equity and global potential.”

Looking ahead, Pat McGrath Labs is focused on accelerating product innovation, deepening customer engagement, and expanding its global footprint—marking what could be its most defining era yet.

Photo Credit: Pat McGrath Labs