You can’t keep a Black-owned brand down! 

Pat McGrath Labs secured $30 million in new financing from its existing lender, GDA PMG Funding. As part of the agreement, founder Pat McGrath will step down as CEO and become chief creative officer, allowing her to fully focus on the brand's creative direction.

The funding includes $10 million in short-term support, with at least $20 million in capital expected to follow. The funds are intended to keep the company running while it reorganizes its finances.

In January, the Black-owned beauty company, once valued at $1 billion, filed for Chapter 11 bankruptcy and said it was exploring a possible sale. Pat McGrath Labs said it planned to continue operating normally and remain committed to its customers, partners, and creative community.

Around the time of the bankruptcy filing, McGrath asked the court to approve $1 million in emergency financing she planned to provide personally. In a declaration, she said she had been acting “at the direction of the company’s lenders for months” and wanted to “remain in control of Pat McGrath Labs” as the restructuring moved forward.

GDA pushed back, accusing McGrath of mismanaging company assets and relying on high-cost debt instead of pursuing other financing options. The disagreement added tension to an already complex restructuring process.

With new funding now in place, McGrath’s transition to a scaled-back executive role is part of a broader effort to stabilize the brand during restructuring.