On January 25, WWD exclusively reported that British celebrity makeup artist and Dame Commander Pat McGrath’s eponymous company has filed for a Chapter 11 bankruptcy. A spokesperson for the brand shared in a statement:“During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and forge a path to thrive. Pat McGrath Labs remains committed to its community, customers, partners, and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation.”Meanwhile, McGrath, DBE, herself has been posting content on her social media pages, including pictures and videos of her product line and her latest makeup looks.Pat, 55, has an estimated net worth of $50 million, as of January 2026, according to Celebrity Net Worth. Meanwhile, at its peak, her company was worth more than a billion dollars in 2018, which has reportedly plummeted to $174 million at the time of writing.Last month, a Pat McGrath Labs representative told Business of Fashion that it was going through “restructuring and recapitalization processes,” despite 2025 seeing sales go up “significantly” in comparison to the years before.The statement came amid reports that PML and its assets were up for an auction on January 27, which now stands cancelled, as per WWD reports.All about Pat McGrath’s career earningsPat McGrath was born and raised in Northampton, England, by a Jamaican immigrant single mother, who inspired her creativity from very early on. She moved to London in her early 20s and began working as a makeup artist on fashion shoots and underground magazines, despite having no formal training.McGrath’s breakthrough came when she crossed paths with future British Vogue editor-in-chief Edward Enninful. The collaboration helped her cement her position as a go-to makeup artist in the fashion and entertainment industry.By the late 1990s, Pat McGrath had worked with big names and banners, including Alexander McQueen, Prada, Dolce & Gabbana, Giorgia Armani, and John Galliano. Her work was regularly featured on Vogue, and she eventually became the magazine’s beauty editor-at-large.For over a decade, she was the exclusive makeup artist for every cover on Vogue Italia. McGrath also served as the Global Cosmetics Creative Design Director at Procter & Gamble for nearly nine years before finding her own beauty brand in 2015.Upon its launch, Pat McGrath Labs only sold a single product called Gold 001 via its official website. The first 1,000 units reportedly sold out in six minutes.By the next three years, the company soared to great heights and expanded offline in around fifty Sephora outlets worldwide. In 2018, Pat sold a 5-8 per cent stake for more than $1 billion. However, she continued to serve as PML’s founder and CEO. View this post on Instagram Instagram PostAround the same time, reports emerged that the brand raised over $88 million from multiple investors as part of its ongoing expansion, with McGrath retaining 70-85 per cent ownership and taking her own net worth to a whopping $700-800 million.Pat McGrath’s impact on the beauty/ fashion culture in modern times made veteran Vogue executive and former editor-in-chief Anna Wintour declare her as “the most influential makeup artist in the world.”In January 2024, McGrath and his brand went viral for their “glass-skin” look at the Maison Margiela couture show. Consumer demand made PML launch a product in early 2025 to replicate the look. It was called Skin Fetish: Glass 001 Artistry Mask. However, its limited stock and difficult use first brought the brand’s operational struggles into the limelight.Regardless, Pat McGrath’s own demand continued. In March 2025, her makeup turned heads at the Paris Fashion Week during the Stella McCartney Women's Wear Fall/ Winter 2025-2026 show, followed by the 2025 Victoria’s Secret Fashion Show. Last year in August, the celebrity makeup icon also joined Louis Vuitton’s La Beaute division as the Creative Director of Makeup.However, PML’s struggle began to worsen over time. In the wake of the COVID-19 pandemic, users shifted their loyalty towards minimalist makeup and skincare, and McGrath’s brand began to incur financial losses.One of the Lab’s major investors, Eurazeo, left in 2021. That same year, Sienna Investment Managers, affiliated to Belgian investment company GBL, acquired 14.4 stake of PML, for $183 million. By 2023, GBL acquired the majority (88 per cent) of its share for only $21.5 million. View this post on Instagram Instagram PostAround this time, the once billion-dollar brand plummeted to $150 million. Meanwhile, despite her own legacy as a veteran makeup artist, Pat McGrath’s net worth also went down, which now stands at approximately $50 million.Last year, PML faced leadership change, a disruptive internal work culture, layoffs, and declining sales at its retail joint, Sephora. These, clubbed with shifting tastes of the customers, back-to-back departures by major investors, shrunk the net valuation of the company, pushing it towards filing the Chapter 11 bankruptcy earlier this month.According to USA Today, Pat McGrath Labs filed for bankruptcy on January 22 in a Southern District of Florida court in the USA. The publication reviewed the filing, which states $50 million in liabilities. A follow-up emergency filing on Monday added that McGrath wants to:"continue to operate its business in the ordinary course, to preserve the value of its estate, to preserve jobs, and to facilitate its orderly reorganization."The recent filing has requested the court to approve a debtor and take out a $1 million loan to keep PML afloat, while continuing to pay the salaries of its remaining employees. Sienna Investment Managers currently has a minority stake, according to Essence.Pat McGrath is yet to address the matter. Last week, her makeup for Schiaparelli models turned heads at the Paris Haute Couture Fashion Week.Besides PML, other beauty/ fashion brands have also filed for bankruptcy, including Saks Global and Ami Cole.