Pat McGrath Labs bankruptcy exit plan approved

By Lynsey Barber | Published: 20-Apr-2026
Colour Cosmetics Finance

Brand founder Dame Pat McGrath will allegedly hand over her equity in make-up brand Pat McGrath Labs to GDA Luma, according to a new report

Pat McGrath Labs is allegedly set to exit bankruptcy after approval from a US judge, according to a new report.

The cosmetics brand, founded by MUA Dame Pat McGrath, filed for Chapter 11 bankruptcy protection on 27 January.

A judge in the Southern District of Florida Court approved plans on Friday (17 April) for GDA Luma to take ownership of Pat McGrath Labs, according to a report by The Business of Fashion (BoF).

The investment firm committed $30m of funding for the cosmetics brand in February.

GDA Luma will establish a new holding company for Pat McGrath Labs, according to BoF, and Dame McGrath will transfer her equity to GDA Luma.

The investment firm previously said that the founder would remain a significant shareholder.

According to court documents filed on 15 April, the “vast majority” of amendments to an initial plan of reorganisation for the brand “are intended to remove certain consideration to Dame Patricia McGrath under the previously filed draft of the Restructuring Term Sheet”.

McGrath will take on the role of Chief Creative Officer with the newly refinanced company.

The make-up artist is also Creative Director, Cosmetics, for fashion house Louis Vuitton, and spearheaded the launch of its luxury colour cosmetics offering, La Beauté, in August 2025.

Cosmetics Business has contacted GDA Luma, Pat McGrath Labs and Dame Pat McGrath for comment.

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