Pat McGrath to Cede Control of Cosmetics Brand in Restructuring

Pat McGrath, the makeup artist behind Taylor Swift’s famous red lipstick, has agreed to a deal to pull her cosmetics company out of bankruptcy, but she has to give up control.

Under terms of a deal struck in bankruptcy court, McGrath will cede control of her company to GDA Luma Capial Management, by giving them a 65% common equity stake in Pat McGrath Labs. GDA will also get new preferred equity in exchange for forgiving the debt it had loaned to the business, according to papers filed Monday in Florida bankruptcy court.