Pat McGrath Labs, once valued at over $1 billion, now faces significant challenges as its valuation has plummeted to a fraction of its former worth. The legendary makeup artist’s brand conducted three rounds of layoffs in 2024 alone, while major investors have quietly exited. Behind the scenes, reports of workplace turmoil and delayed product launches have emerged as the company struggles to maintain its position in the competitive beauty market.
These developments mark a dramatic shift for a brand that set the template for makeup artist-driven beauty brands. Founded nearly a decade ago in 2015, Pat McGrath Labs initially captured the imagination of makeup enthusiasts with innovative products that translated runway artistry into consumer-friendly formats.
From Billion-Dollar Valuation to Significant Decline
The company’s troubles began shortly after receiving its unicorn status. French firm Eurazeo, an early investor who once touted the brand as the foundation of a global beauty empire, quietly exited in 2021. The same year, Sienna Investment Managers purchased a 14.4 percent stake for €168 million, valuing the company at €1.2 billion.
Just one year later, Sienna wrote down that investment by 88 percent. By 2024, the firm estimated its stake was worth only €21.5 million. This dramatic decline places the company’s current valuation at approximately €149 million, a staggering drop from its peak.
The brand’s retail presence has also diminished. Its door count at Sephora has steadily decreased since 2019. When Ulta Beauty picked up the line in 2023, it appeared in just 200 of its 1,400 North American stores. Some customers have even spotted Pat McGrath products at discount retailers like Ross Dress for Less.
Viral Runway Moment Highlights Product Launch Challenges
Last year’s “glass skin” look for Maison Margiela’s couture show became Pat McGrath’s most viral creation to date. Models walked the runway with otherworldly, pearlescent skin that captivated viewers worldwide. Google searches for McGrath spiked as fans eagerly awaited a product release.
However, the brand wasn’t prepared for this viral moment. According to former employees, McGrath’s team hadn’t been working on a related product. They were scooped by makeup artist Erin Parsons, who revealed the technique on TikTok—a drugstore peel-off mask applied via airbrush.
It took nearly a year for Pat McGrath Labs to release Skin Fetish: Glass 001 Artistry Mask on January 30, 2025. While fans enthusiastically welcomed the $38 product, many wondered about the lengthy delay. The launch reportedly faced supply chain issues, with only about 100 units initially available.
Workplace Culture and Leadership Concerns Surface
Former employees describe a chaotic working environment with late-night approval processes and an atmosphere of secrecy. McGrath’s exacting standards and mercurial tendencies, while enabling artistic genius on fashion runways, created challenges within the company structure.
Complaints from former staff members frequently centered around Andrew Weir, described as McGrath’s “chief of staff.” Several former employees alleged that Weir’s behavior was “aggressive, abusive, and inappropriate,” particularly toward the predominantly young, female workforce. One former employee claimed to witness Weir shoving a female junior staff member.
The company’s leadership reportedly functioned as an echo chamber around McGrath. Employees were discouraged from sharing information about projects, even with colleagues. Some described being unknowingly assigned to compete on identical projects, creating a divisive atmosphere.
Costly Marketing Decisions and Product Strategy Missteps
Pat McGrath Labs’ approach to marketing has reportedly involved high-production campaigns with limited returns. One notable example was a Steven Meisel campaign featuring Naomi Campbell to promote the brand’s first skincare launch, Divine Skin rose essence.
Sources claim the shoot cost over $1 million but failed to generate significant engagement. A 20-second YouTube ad garnered just over 3,000 views. This expensive yet ineffective marketing strategy has strained the company’s resources.
The brand’s product launch strategy has also faced criticism. Their reliance on limited-edition releases and last-minute production has led to costly logistics, including airlifting Mothership palettes from China to Italy for filling before shipping to stores. This approach has made it difficult to build sustainable product lines.
Meanwhile, the makeup industry has evolved since Pat McGrath Labs’ launch. The minimal “clean girl” aesthetic that gained popularity during the pandemic contrasted with the brand’s more dramatic offerings. Competitors like Charlotte Tilbury and Bobbi Brown’s Jones Road have found success with more accessible approaches.
Path to Revival: Industry Experts Suggest Leadership Changes
Despite the challenges facing her brand, McGrath’s personal reputation remains strong. She was recently named creative director of Louis Vuitton’s forthcoming makeup line. Her artistic vision continues to influence the industry, and she still works approximately 50 fashion shows annually.
Former employees expressed continued admiration for McGrath’s artistic abilities. “Everyone who’s left has always been in awe of seeing Pat do her job,” one former employee said. “They want her to be a success.” Many view McGrath primarily as a creative force rather than a business operator.
Industry insiders suggest that the company’s revival may depend on leadership changes. Four former employees recommended that McGrath and her inner circle cede operational control to experienced business professionals. This would allow the makeup artist to focus on what she does best—creating innovative beauty looks.
Recent developments suggest potential changes ahead. In his farewell email, outgoing senior executive Rabih Hamdan alluded to “hard decisions” made “to set the fundamentals for a swift and sustainable turnaround.” Pat McGrath Labs continues to release new products, recently launching a limited collection in partnership with mobile game Candy Crush.
Whether these efforts will be enough to restore the brand’s former glory remains to be seen. However, McGrath’s artistic legacy and influence on the beauty industry remain undisputed, even as her namesake company navigates these challenging times.