In a stunning turn of events for the global beauty industry, the legendary makeup brand Pat McGrath Labs is preparing to sell its assets at a public auction. The label, founded by the iconic Dame Pat McGrath, was once valued at over a billion dollars and celebrated as a crown jewel of luxury cosmetics.
From Beauty Unicorn to Auction Block
The brand's journey to the auction block marks a dramatic fall from grace. Pat McGrath Labs recently turned ten years old, a milestone overshadowed by news of layoffs, internal turbulence, and a severely diminished valuation. Reports confirm that investors have marked down their stakes, slashing the company's worth to just a fraction of its former billion-dollar 'unicorn' status.
According to financial details, the entire sale process is being managed by the US-based firm Hilco Global. The auction will proceed under Article 9 of the Uniform Commercial Code, with bidders invited to submit offers ahead of a public auction scheduled for later this month. Core assets, including the brand's valuable trademark and logo, are being put on the table in an "as-is, where-is" manner, with no attached promises.
The Signs of Struggle Were There
Looking back, several indicators pointed to deeper troubles within the company. Industry observers noted a pattern of slower product launches, puzzling inventory issues, and an increasing reliance on influencer marketing to drive sales. The once-deafening buzz that surrounded every new Mothership palette release had quietly faded away, suggesting more than just a temporary dry spell for the innovative brand.
Launched in 2015 with the instant sell-out product Gold 001, Pat McGrath Labs built an unparalleled reputation. Its rich pigments, editorial-quality formulas, and runway-ready aesthetics made it a favourite among celebrities, makeup artists, and dedicated beauty fans who treated its products like treasured collectibles.
An Uncertain Future for a Beauty Legacy
Interestingly, Dame Pat McGrath herself continues to operate at fashion's highest levels, having recently taken on the role of Creative Director of Cosmetics for Louis Vuitton. However, the brand that bears her name is now fighting for its survival separate from her personal creative endeavours.
The coming weeks will determine whether a new buyer emerges with a plan to rescue and revitalise the brand or if the iconic label will be dismantled piece by piece. This development serves as a stark reminder that even the most influential and beloved brands are not immune to business missteps, shifting market dynamics, and the inevitable fading of hype cycles.
For the global community of makeup lovers and the industry at large, the potential dissolution of Pat McGrath Labs is more than a business headline; it signifies the poignant end of an era that redefined luxury cosmetics.
