After a decade of press powders and sharply pigmented shadow, Pat McGrath Labs is filing for bankruptcy.
The company, founded by namesake makeup artist Pat McGrath in 2015, filed for Chapter 11 bankruptcy on Jan. 22, according to court documents reviewed by USA TODAY. Filing in the Southern District of Florida, the company listed over $50 million in liabilities.
USA TODAY has reached out to McGrath's lawyer for comment.
The makeup company's filing does not, however, mean the death of the legacy brand yet. In a court filing Jan. 25, lawyers for McGrath indicated that the founder wanted 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." In an emergency filing, the company requested approval for a debtor to dole out a $1 million loan to keep the business afloat and pay employees.
The bankruptcy filing comes on the heels of news that the company planned to auction off the brand's assets. That auction has now been indefinitely postponed, WWD reports. Chapter 11 bankruptcy, largely viewed as an emergency break for businesses, allows for a company to reorganize with the help of a debtor. In partnership, the debtor and business then develop a plan to pay back creditors over time.
