Pat McGrath Labs Has Filed For Bankruptcy—Here’s What That Means For You
You don’t have to panic buy just yet.
Just a few months after the closure of one of my favorite brands, Ami Colé, another Black beauty juggernaut may be on the verge of closing its doors. On January 7, it was reported that Pat McGrath Labs would be headed to auction—a surprising turn for the brand that was once valued at a billion dollars. Just a few days ago, on January 22nd, the brand filed for Chapter 11 bankruptcy, halting the immediate sale of its assets. But what exactly does this mean?
“Bankruptcy means that the company can not pay its creditors, so they seek protection from a court to help them either repay or be protected from said creditors,” Ernest Lyles, a founding partner at The HiGro Group, tells me. “Usually, this happens because things aren’t looking great for the brand from a financial standpoint.”
If seeing this made you feel the same despair that I did when I first saw this news, there is a potential light at the end of the tunnel. Chapter 11 bankruptcy also means that Pat McGrath Labs has bought itself more time to try turning things around. “They’re reorganizing their debt,” Samuel Aboagye, New York City-based FP&A Manager II, tells me. “They’ll continue running the business normally, but they have certain goals they must meet to pay back their debtors. If they don’t pay their debts (and by extension, their debtors) back in the timeline agreed upon, then they’ll cease control of the company or liquidate it for the funds and shut it down.”
So what exactly does this mean for us as everyday consumers? Well, you can expect some changes to come to the brand. “They’re going to become more profit-driven, so don’t be surprised if their goods cost more,” Aboagye says. “If certain products aren’t generating enough gross profit, they more likely than not are going to be removed from the product lineup.”
As a day one Pat McGrath Labs stan, I won’t lie, this news initially felt like a gut punch. However, I know for a fact that Dame Patricia Ann McGrath, D.B.E., will be ok. This is one of those rare instances where the founder can operate completely independently of their brand, and to be frank, I love to see this for a Black woman. Pat McGrath is bigger than any brand, her namesake or otherwise, and her legacy will always be etched into the fabric of fashion and beauty history. There is, and should be, no debate about that. With all this being said, I have slowly started stocking up on some of my favorite items from the line, just in case any of them get discontinued or any formulas see major changes. If you’ve also been a big fan of the brand, I suggest you do the same.
There’s no right way to navigate the rising costs of, well, everything, and as a beauty enthusiast, I feel for the myriad of brands that are facing difficult financial landscapes. On this corner of the internet, I can speak for all of team Marie Claire when I say that we are rooting for one of our favorite brands to win, but whatever happens, know this: Nothing has ever compared to the magic of Pat McGrath Labs. And nothing ever will.
Shop a few of my favorite items from the brand, while you still can.
This is the first high-end eyeshadow palette that I added to my collection and it's still a favorite to this day.
The glass skin setting spray from the brand is not talked about enough.
The formula of these glosses is the best on the market. Period.
These cream blush sticks are another underrated offering from the brand.
I love this concealer with everything in me.
