What REALLY Happened? The Pat McGrath Bankruptcy Story Nobody's Telling

(hint): it's deeper than a $125 eyeshadow palette

Slutty Founder is a weekly-ish newsletter about the business of beauty. We break down the moves, the money (and the mistakes) that don't make it onto LinkedIn.

Welcome back and happy Friday.

To the influx of new subscribers both free and paid, welcome!

We cracked top 100 Rising in business last week and I want to thank you for your help on making it happen! Slutty Founder is starting to evolve at an exciting pace and words can’t capture how much I value your support and curiosity.

Let’s get into this week’s much anticipated newsletter.

I can’t believe I almost wrote The Pat McGrath story off as just another soon-to-be business closure. I was like: “Good for her!” You know I love when the girls walk away from something.

Well…this is a little more shell-shocking.

ICYMI: Legendary makeup artist Pat McGrath hit the headlines last year, from a slashed valuation, to an auction announcement, to last week’s bankruptcy filing.

Maison Margiela couture spring 2024 show in Paris; Courtesy / Pat McGrath

So many have asked for my opinion on this, but I initially thought the subject was too dull to even bother. The only thing that got my blood pumping were the misguided takes blaming the brand’s decline on its steep price point, as if we don’t live in the age of pay-in-4.

I knew there was something deeper under the hood and eventually something nudged at me to dig deeper.

This situation is far more complex than I anticipated. It isn’t a story that can be simplified to untimely market positioning or $125 eyeshadow palettes.

It’s a cautionary tale about what happens when you get in bed with the wrong people, and how the wrong kind of money can systematically dismantle a legendary brand and legendary human.

Although the brand says they are continuing in “an ordinary course of business”, what’s happening could very well mark the end of Pat McGrath Labs as we know it.

Buckle up.