Pat McGrath Labs is currently engaging in a restructuring and recapitalization process, as stated by a spokesperson from the brand to The Business of Beauty.
The company is revisiting its assets, and some, including its trademark and logo, are up for potential sale, according to Women’s Wear Daily. This entire process is under the oversight of the US financial firm Hilco Global, although no comments have been received from them regarding their involvement.
This restructuring initiative aims to pave the way for Pat McGrath Labs to operate in a more productive and stable environment, as per the brand’s statement.
Founded by the renowned makeup artist Pat McGrath, Pat McGrath Labs celebrated its tenth anniversary in October. When it launched into Sephora and received an investment from Eurazeo in 2018, it was valued at over $1 billion. However, in 2021, Business of Fashion reported that Eurazeo had quietly exited its investment. Further, another investor, Sienna Investment Managers, marked down its stake in the brand by 88 percent this year, which suggested a valuation closer to €149 million ($174 million). In the latest half-year report from Sienna’s parent company Groupe Bruxelles Lambert, there were indications of a desire to exit their stake, although it remains unclear if that has been finalized.
Despite the challenges, a spokesperson for Pat McGrath Labs noted that sales have improved considerably since the start of the year.
What Happened to Pat McGrath Labs?
The brand launched by the iconic makeup artist nearly ten years ago is encountering difficulties. Originally valued at more than $1 billion, the line is now worth significantly less. With multiple rounds of layoffs and signs of internal disruption, questions arise regarding what has transpired and how the company can realign itself for recovery.
