Pat McGrath Lab secures $30M in financing less than a month after filing for Chapter 11 bankruptcy

The cosmetics brand, once valued at $1 billion, was recently put up for sale.

Pat McGrath Lab is already preparing for a comeback.

The cosmetics company announced it had secured $30 million in new funding from existing lender GDA PMG Funding, according to Retail Dive. The influx of new capital will also see founder Patricia McGrath transition from CEO to chief creative officer.

“Pat McGrath Labs is a house built on audacious artistry, cultural relevance, and singular creative vision—one that has shaped the modern beauty conversation for over a decade,” a press release stated. “GDA Luma undertakes this investment with profound respect for that legacy, combined with the operational discipline and strategic perspective of an experienced global investor with a proven track record of repositioning iconic brands for enduring success.”

The new deal includes $10 million in new debtor-in-possession financing and a commitment of at least $20 million in “post-emergence working capital.”

In January, the Black-owned beauty brand, which was once valued at $1 billion, filed for Chapter 11 bankruptcy. As theGrio previously reported, the venture started by McGrath, which became a worldwide known cosmetics line, was also seeking a buyer.

A spokesperson told Women’s Wear Daily, “During this process, the company will continue operations in the ordinary course of business while working to restructure its balance sheet and to 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.”

Pat McGrath and GDA had been at odds after the bankruptcy filing. At the time, McGrath argued that her brand was involved in a dispute over its outstanding debts to GDA, leading GDA to trigger a sale of the brand’s assets with McGrath’s involvement. When the bankruptcy proceedings began, McGrath requested court approval for $1 million in DIP financing she provided. GDA objected to the proposal and accused her of mismanaging the company’s assets.