Pat McGrath Labs, Francesca’s, Saks. What do all of these companies have in common? Aside from leaving their mark on their respective industries, they’ve all recently filed for bankruptcy. Style might be closely related to fashion and beauty, but so are finances. No brand is safe, even the well-known giants can fall into trouble. Without further ado, VALLEY is here to explain the latest financial news about these iconic brands.
Pat McGrath Labs
The beauty brand was created by iconic makeup artist Pat McGrath in 2015. In late January 2026, it filed for Chapter 11 bankruptcy. This came as a shock because the brand was reportedly going to be put up for auction. Chapter 11 means that the business can restructure its debt while still functioning. Listed publicly, Pat McGrath Labs had gathered liabilities of $50 million.
However, the fight is not over. As the company organizes its debts and its financial structure, it will stay in business. The power of makeup artist Pat McGrath will never slow or die down. As an artist for Schiaparelli, Maison Margiela and countless fashion houses, her legacy will continue and VALLEY hopes the iconic brand can financially recover.
Francesca’s
This boutique chain ruled the 2000s and early 2010s. Its sweet and charming nature made it seemingly irresistible to Millennials everywhere. You name it: gold charms, lace skirts, suede belts, Francesca’s had it. The chain of boutiques was created by Chong Yi, Kyong Gill, Insuk Koo and John De Meritt in 1999.
In February 2026, the brand refiled for Chapter 11 bankruptcy. Like Pat McGrath Labs, this meant they could restructure to pay back their debts. Additionally, companies TerraMar Capital and Tiger Group spent $18 million acquiring it. Unfortunately, efforts to boost the company’s sales did not significantly eliminate its debt. The chain of small boutiques is closing, and their online store is no longer in service. Across America, they are having in-store sales while they prepare to shut down.
Saks
This retail company held some of the best luxury houses in history. Saks was the place where Blair Waldorf from “Gossip Girl” and other fashionistas famously shopped at. It was a 2000s/2010s daydream for anyone who wished to feel wealth wrapped in fabric. The Saks and Gimbel families built Saks Fifth Avenue in the 1900s. Over the decades, their luxury retail stores popped up in wealthy, prominent neighborhoods.
Unfortunately, the company has been in financial trouble since early 2023. Saks started owing debt payments to luxury houses like Chanel. In 2024, the company acquired Neiman Marcus for about $2.7 million. That acquisition put Saks more in debt, making it essentially impossible to pay back vendors. In the middle of January 2026, Saks Global filed for Chapter 11 bankruptcy. The total debt is around $3 billion dollars. However, it is not shutting its stylish doors just yet. The company will continue to operate as it tries to restructure and pay back the various vendors.
What are your thoughts on these iconic companies? Let us know @VALLEYmag!
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