Pat McGrath Labs is “going through restructuring and recapitalisation processes,” a brand spokesperson told The Business of Beauty.
Assets under review were described by sources as pledged collateral by Pat McGrath Cosmetics LLC, which owns the brand’s trademarks and logo, and Patricia McGrath. The news was first reported by WWD, which said the process is being managed by US financial firm Hilco Global. Hilco did not respond to requests for comment.
The restructuring is meant to “allow Pat McGrath Labs to move forward in a productive and healthy environment,” according to the brand.
Sources said the potential sale is being managed by US financial firm Hilco Global. Hilco did not respond to requests for comment.
Pat McGrath Labs, created by famed makeup artist Pat McGrath, turned 10 in October. It was valued at over $1 billion dollars when it received an investment from Eurazeo in 2018, soon after its launch into Sephora. BoF reported in 2021 that Eurazero had quietly exited its investment, and reported earlier this year that another investor, Sienna Investment Managers, had marked down its stake in the brand by 88 percent, implying a valuation closer to €149 million ($174 million).
In its 2025 half-year report, Sienna’s parent company Groupe Bruxelles Lambert indicated an intent to exit its stake, though it was not clear if it had actually done so.
The Pat McGrath Labs spokesperson added that sales have improved “significantly” since the beginning of the year.
Learn more:
What Happened to Pat McGrath Labs?
The brand founded by the legendary makeup artist nearly a decade ago is struggling. Once valued at over $1 billion, the line is worth a fraction of that today. Multiple rounds of layoffs, and signs of behind-the-scenes turmoil raise questions about what went wrong and how the business can get back on track.
Sign up to The Business of Beauty newsletter, your complimentary, must-read source for the day’s most important beauty and wellness news and analysis.
