A Florida judge on Friday approved Pat McGrath Labs’ exit from Chapter 11 bankruptcy, months after the cosmetic giant announced a financial restructuring process.

With the restructuring process complete, GDA Luma, the Miami-based company that invested $30 million in Pat McGrath Labs, will assume ownership, with the brand’s founder remaining as Chief Creative Officer.

“Creating beauty that moves people has been my life’s work, and that never stops,” McGrath said in a statement. “I will continue pushing boundaries in my role as Chief Creative Officer alongside GDA Luma, and I look forward to the future.”

The company under GDA Luma will move into “a new phase of creative excellence, operational discipline, innovation-led growth, and sustainable long-term success.”

This marks a new chapter following its Chapter 11 bankruptcy filing on January 22. The beauty brand, founded by Pat McGrath, previously shared that its filing was to “simplify its capital structure, reduce its debt load and unlock the potential of this brand,” the New York Times reported. Business of Fashion reported that most of the brand’s debt comes from a loan obtained from GDA PMG Funding in April 2025. 

The latest development renews a sense of hope for the luxury cosmetics brand, which reached a $1 billion valuation back in 2018. McGrath’s legacy is built on her legendary work with icons like Beyoncé and Naomi Campbell and fashion brands like Gucci and Versace. 

Her brand changed the game by prioritizing lush formulas for deeper skin tones when the rest of the industry looked away. 

In 2015 when it launched, its products soon sold in major retailers like Sephora and Ulta Beauty. Things started getting slow for the company amid poor sales, a shakeup in the executive and layoffs.

GDA Luma intervened, beginning with $10 million in debtor-in-possession financing to support operations and restructuring, and an additional $20 million in post-emergence capital to maintain liquidity.

“Pat McGrath Labs is an iconic brand with extraordinary creative equity and global potential,” Gabriel de Alba, founder and managing partner of GDA Luma, said. “Our priority has been to stabilize the foundation of the business, implement best-in-class operating disciplines, and invest in the next phase of sustainable growth while preserving the brand’s legacy of creative excellence.”

McGrath is a makeup artist who has worked across the globe with various icons such as Oprah Winfrey, Naomi Campbell, Rihanna, and multi-million dollar fashion brands, making up models for the runways and high-ranking fashion magazines.

She was born in Northampton to a single mother and a first-generation Jamaican immigrant before she later moved to South London. She broke onto the scene in the 1980s after a few stints in London’s colorful nightlife scenes. It was during that time that she met Kim Bowen, the then director of British Vogue, Edward Enningful, who named her the beauty director at i-D magazine.

McGrath was inspired to establish her own cosmetic beauty line, Pat McGrath Labs, in 2015 with the hopes of providing a brand that was usable on black skin. 

On July 16, 2018, WWD announced that the iconic beauty brand mogul had bagged a 60 million dollar investment deal with Eurazeo Brands, an investment division of a global investment firm. The huge investment deal for the Jamaican-British makeup mogul skyrocketed her worth to 1 billion dollars.