Pat McGrath Labs Files for Chapter 11 Bankruptcy, Cancels Auction

Core Insights - Pat McGrath Labs has filed for Chapter 11 bankruptcy, halting a planned auction for the company [1][3] - The company aims to continue operations while restructuring its balance sheet for long-term stability [2][3] - The brand, founded by renowned makeup artist Pat McGrath, has faced significant operational challenges and a decline in valuation [4] Company Operations - The Chapter 11 filing allows Pat McGrath Labs to operate normally while working on restoring profitability [3] - The company remains committed to its community and stakeholders, continuing to deliver high-quality products [2] Financial Background - Pat McGrath Labs was launched in 2015 and initially gained significant traction with its first product, Gold 001, which sold out quickly [4] - The company raised $60 million from Eurazeo Brands in 2018, with a valuation reportedly exceeding $1 billion, but has since seen a decline in worth [4] - Sales reportedly totaled about $50 million last year, indicating a sharp decline from previous valuations [4]