A private equity firm, GDA Luma, is financing the recapitalization of Pat McGrath Labs. This follows the beauty brand filing for Chapter 11 bankruptcy last month.

A Miami court approved the financing from GDA Luma, so now Pat McGrath can begin a new phase of “strong stewardship and long-term growth.”

As a senior secured creditor, GDA Luma has committed up to $10 million in new Debtor-in-Possession financing. GDA Luma has also committed at least $20 million in post-emergence working capital. 

This transaction provides up to $30 million of fresh capital to support the company throughout its Chapter 11 process and to ensure stability and momentum upon emergence.

Founder Dame Pat McGrath will remain a significant equity owner and continue as chief creative officer.

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