When it comes to influential beauty figures, few names ring bells quite like Pat McGrath. In 2018, McGrath became the first Black woman to create a $1 billion beauty brand. Now, eight years later, McGrath’s company has filed for Chapter 11 bankruptcy. This comes just a few months after another Black-owned beauty brand, Ami Colé, was forced to close down in September 2025 due to mounting economic pressures.
In the case of McGrath, her company isn’t being dissolved as of yet. Instead, Pat McGrath Labs will still continue to operate while its debts are restructured under court supervision.
McGrath, a self-taught makeup artist who has helmed titles at makeup brands including Giorgio Armani and Procter & Gamble, did more than just beat faces. She redefined existing boundaries between reality and fantasy through her avant-garde, experimental makeup style.
The grande dame of aesthetic innovation
As far as aesthetic innovation is concerned, McGrath is a cultural behemoth. From turning runway models into walking porcelain dolls for Maison Margiela’s spring 2024 couture show to the crystal mask-like creations she crafted for Givenchy’s spring 2016 presentation, McGrath’s visionary prowess extends far beyond the shelves of specialty beauty retailers.
That is, in part, why it is so disheartening to see so many people reduce McGrath’s legacy and journey to this moment. Online, the news about her business has been blamed on everything from her “high” price point to delays in capturing of-the-moment trends while they’re hot.
Now, I’d be remiss to completely rule out any of these factors as contributors to the current state of Pat McGrath Labs, but these instances are hardly unique to Pat McGrath Labs. The larger answer here is frankly much simpler. Lack of financial backing for Black beauty founders is a surmounting hindrance that doesn’t accurately reflect consumer desires.
Claims that McGrath is an “oppressive elitist” whose products are inaccessible to Black women and that she lacks the same star power as legacy brands like Hermés Beauty reinforce stereotypes that suggest Black-owned businesses must be everything for everyone. The products must be affordable but high-quality. Genre-defining but approachable. Innovative but classic. Exclusive but universal.
It’s a never-ending catch-22 that other brands simply don’t have to deal with. When it comes to comparable beauty brands like Victoria Beckham or Nars, the price is simply the price. But in the case of Black-owned beauty brands, every decision is up for scrutiny, and no choice is ever the right one.
Misplaced expectations
This announcement is a two-prong circumstance. On its face, it’s a tragic reminder of how little financial grace Black-owned beauty brands are given. On the other hand, it highlights a larger dichotomy in the way Black entrepreneurship works. Black women often have to create their own opportunities due to a systemic lack of inclusion. Take, for example, Amí Cole founder Diarrha N’Diaye-Mbaye. After having to close her own makeup brand, she was appointed as the executive vice president of Skims Beauty and Fragrance. Similarly, McGrath now serves as the Cosmetics Creative Director for La Beauté Louis Vuitton.
There’s no doubt that these women’s entrepreneurial pursuits played a role in their success, as Black women often have to prove their capabilities on a far greater scale than their non-Black counterparts.
It’s unfortunate to see the powers that be undervalue and over-critique these beacons of Black inclusivity that the beauty industry so desperately needs. But as many times as Black founders get knocked down, they always find a way to land on their feet. Hopefully, one day, they won’t need to.
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