“Pat McGrath Labs remains committed to its community, customers, partners and stakeholders as it continues delivering its signature, high-quality products and culture-defining artistry and innovation,” the statement continued. According to bankruptcy documents obtained by WWD, Pat McGrath Labs began facing serious financial struggles in early 2025, such as liquidity constraints. Sadly, the forecast for the Black beauty industry doesn’t look bright given the increasingly disheartening economy and consistent layoffs. As a subset of a larger industry, Black beauty brands are seen as the underdog and therefore unfairly dismissed. Here’s hoping the Black beauty industry is next in line for it triumphant return to greatness and profitability.