Pat McGrath Labs Files Chapter 11 Bankruptcy After Billion Dollar Peak

operate its business in the ordinary course, to preserve the value of its estate, to preserve jobs, and to facilitate its orderly reorganization.” The brand has also sought emergency court approval for more than $1 million in financing and for payments to critical vendors and employees, around $426,000 to suppliers, and $689,000 in wages and related compensation to keep operations running during the process.

Asset auction halted as restructuring takes center stage The bankruptcy comes just as industry watchers were expecting Pat McGrath Labs to be auctioned off, with a sale originally scheduled for January 27, 2026.

That auction has now been postponed indefinitely, with representatives telling trade outlets the focus is shifting to restructuring under court protection instead.

This pivot suggests the brand and its lenders are exploring ways to keep the business intact, potentially opening the door to a reorganization plan that brings in new capital, restructures debt, or introduces a new ownership structure, rather than a straightforward sale…