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Pat McGrath Labs Files for Chapter 11, Halts Planned Auction

Court-approved financing keeps operations running during a debt restructuring.

Overview

  • The company filed for Chapter 11 on January 22 in the Southern District of Florida, listing more than $50 million in liabilities.
  • A judge approved a $1 million debtor-provided loan to maintain operations and continue paying employees.
  • A previously planned lender-run auction of the brand’s assets has been postponed indefinitely, according to WWD.
  • Pat McGrath Labs says it will operate in the ordinary course as it works to reorganize its balance sheet.
  • The brand once raised $60 million from Eurazeo at a reported valuation above $1 billion, but recent coverage notes operational strains, leadership turnover, and layoffs.