Pat McGrath Labs, the high-end cosmetics brand once hailed as a “beauty unicorn” with a billion-dollar valuation, is currently undergoing a formal asset sale managed by Hilco Global. The move marks a significant shift for the cult-favorite label as it seeks a strategic turnaround following years of operational challenges.
Hilco Global’s Intellectual Property practice announced that it is accepting bids for the acquisition of the brand, including collateral pledged by Pat McGrath Cosmetics, LLC, and Patricia McGrath. Qualified bids are due by Jan. 26, 2026, at 7 a.m. PST. A formal auction is scheduled to take place via Zoom on Jan. 27, 2026, with an option for participants to appear in person.
The sale includes the brand’s extensive intellectual property, trademarks, and associated assets. According to Hilco Global, Pat McGrath Labs remains a powerhouse in the creative space, recognized for its “high-performance formulas, richly pigmented eyeshadows, iconic lip products and luxurious, statement-making collections.”
The transition to a distressed sale follows a period where the brand’s rapid global expansion reportedly outpaced its operational fundamentals. In 2018, Pat McGrath Labs reached a $1 billion valuation after securing a massive investment from Eurazeo Brands. However, the company subsequently struggled with scaling issues, executive turnover, and a shifting retail landscape, leading to a significant drop in its valuation.
The decline serves as a cautionary tale within the prestige beauty sector. While the brand excelled in creative output, industry insiders noted that the logistical infrastructure often lagged behind its viral marketing success. This operational friction led to a series of management restructures that ultimately failed to stabilize the brand’s bottom line. Hilco Global’s involvement signals a final push to preserve the brand’s equity under new stewardship that can reconcile its artistry with sustainable business practices.
The auction comes at a pivotal moment for the brand’s namesake founder. McGrath was recently appointed as the Creative Director for Louis Vuitton’s La Beauté makeup line, a move that reaffirmed her individual standing as one of the most influential makeup artists in history.
For potential investors, the allure lies in the brand’s unique positioning at the intersection of high fashion and retail accessibility. The IP portfolio includes not only patented formulas but also a digital footprint that remains among the most engaged in the industry. As the broader color cosmetics category faces increased competition from celebrity-backed labels, the acquisition of a proven legacy brand like Pat McGrath Labs offers a rare entry point into the luxury tier.
