Just a few months after the closure of one of my favorite brands, Ami Colé, another Black beauty juggernaut may be on the verge of closing its doors. On January 7, it was reported that Pat McGrath Labs would be headed to auction—a surprising turn for the brand that was once valued at a billion dollars. Just a few days ago, on January 22nd, the brand filed for Chapter 11 bankruptcy, halting the immediate sale of its assets. But what exactly does this mean?
“Bankruptcy means that the company can not pay its creditors, so they seek protection from a court to help them either repay or be protected from said creditors,” Ernest Lyles, a founding partner at The HiGro Group, tells me. “Usually, this happens because things aren’t looking great for the brand from a financial standpoint.”
