Pat McGrath, the makeup brand once valued at more than $1 billion, canceled a sales process and filed for bankruptcy.WHO: Pat McGrath launched the Pat McGrath Labs makeup line in October 2015 with a limited-edition launch of 1,000 pieces of Gold 001, a $40 goldmultipurpose pigment that sold out in six minutes. This initiated a series of product drops that McGrath orchestrated during the lead-up to the broader collection launch in September 2017, which was rolled out to Sephora stores.WHY: The Chapter 11 filing allows the business to remain operational while restructuring debt, and indicates hope of restoring profitability over liquidating assets.IN THEIR OWN WORDS: “During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and to forge a path to thrive,” the brand said in a statement. “Pat McGrath Labs remains committed to its community, customers, partners, and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation.” DETAILS:Pat McGrath Labs files for Chapter 11 bankruptcy in the Southern District of Florida, according to a petition filed on January 22, 2026. The company’s secured lender’s scheduled auction for the brand’s assets has been postponed indefinitely.The brand claims estimated liabilities of $50 million to $100 million, according to filings. It filed emergency motions for payment to critical vendors totaling $426,402 and for payment of employee wages, salaries, and other compensation totaling $689,324.