Overview
- Pat McGrath Labs filed for Chapter 11 on Jan. 22 in the U.S. Bankruptcy Court for the Southern District of Florida, according to court and company statements.
- The company says it will keep selling products during the case, with inventory remaining available on patmcgrath.com and at major retailers including Sephora and Ulta.
- Filings report liabilities in the tens of millions of dollars, and emergency motions seek approval to pay critical vendors ($426,402) and employee compensation ($689,324).
- Pat McGrath has pledged $1 million to support payments in the case, while a disputed April 2025 loan from GDA PMG Funding remains central, with the company citing $17.5 million received and the lender claiming more than $43 million owed.
- A lender-led asset auction managed by Hilco Global and slated for late January is now postponed, and the company’s plan could include new investment, a financial restructuring or a sale; Gordian Group and Pack Law are advising.