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On Tuesday, US-based financial firm GDA Luma announced a $30 million financing package for makeup artistry label Pat McGrath Labs, weeks after the brand filed for bankruptcy.
A Miami, Florida bankruptcy court approved the transaction, which injects $10 million in new debtor-in-possession financing into the brand and commits an additional $20 million in post-emergence working capital, according to a statement. GDA Luma will hold a controlling interest upon exit; founder Pat McGrath will retain a “significant” stake and transition from chief executive to chief creative officer.
“Together, Pat McGrath Labs and GDA Luma are committed to a future defined by uncompromising quality, desirability and relentless innovation,” the statement said. GDA Luma, an entity affiliated with the Miami-based investor Gabriel de Alba, is a US firm specialising in distressed and special situations investments, according to its website.
On Jan. 22, Pat McGrath Labs filed for bankruptcy in a Miami court in order to restructure its debts. In filings, the brand specified its primary debt came from a loan secured in April 2025 from GDA.
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The statement continued, “the Company looks forward to an exciting pipeline of product launches beginning in the first quarter of 2026, driving renewed creative energy and commercial momentum across categories.”
Learn more:
Why Pat McGrath Labs Filed for Bankruptcy
Once valued at $1 billion, the makeup brand has struggled to balance its creative point of view with commercial viability.
