Pat McGrath Labs narrowly missed being auctioned off after filing for Chapter 11 bankruptcy.
Pat McGrath Labs has pulled its beauty empire from auction after filing for Chapter 11 bankruptcy just before the sale was set to begin.
On Jan. 26, a spokesperson for the makeup brand confirmed the Chapter 11 filing, saying the company plans to continue operating while working toward long-term stability, WWD reported.
“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 spokeswoman for Pat McGrath Labs 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.”
The bankruptcy filing comes just over a month after reports surfaced of a planned auction for the makeup company, created by the celebrated editorial and runway makeup artist Pat McGrath. Reports indicated the company was up for sale, with Hilco Global overseeing an auction scheduled for Jan. 26.
The planned auction was set to include assets pledged by Pat McGrath Cosmetics, LLC, and its founder, Dame Pat McGrath. However, on Jan. 22, Pat McGrath Labs filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida.
The Chapter 11 filing indicates the company has time to restore profitability, as it allows it to continue operating while restructuring its debt. Hilco Global, the auction facilitator, has since removed Pat McGrath Labs’ listing from its website.
Despite the company’s struggles, McGrath remains in high demand, most recently serving as beauty director for Louis Vuitton’s La Beauté makeup collection.
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Source: Black Enterprise
