WSG Brands buys Sanctuary, the $85 million L.A. label, for global push

WSG Brands has completed its acquisition of Sanctuary, the Los Angeles contemporary women's label founded in 1997 by husband-and-wife team Ken and Debra Polanco. No purchase price was disclosed, but documents obtained by WWD last March put the figure at $67 million, with $3.5 million in closing costs and fees.

Sanctuary is profitable and does approximately $85 million in sales. Wholesale accounts for 70 percent of the business, and its retail partners include Nordstrom and Bloomingdale's. The brand opened a 2,000-square-foot flagship at 358 North Beverly Drive in Beverly Hills earlier this year.

The documents showed WSG seeking $70.5 million of investor equity to fund the deal and said Li & Fung would lead the brand, cutting fixed costs in favour of a royalty-driven earnings profile. Li & Fung becomes anchor licensee of Sanctuary's existing women's ready-to-wear business.

Li & Fung already had a connection to Sanctuary: the two signed a licensing partnership in 2024 to produce and distribute a line of women's premium denim. Jason Kra, president of L&F Markets USA, framed the tie as a meeting of complementary strengths rather than simply another brand in the portfolio.

Kra said the partnership brings together Sanctuary's commercial platform, sales relationships and product creation alongside Li & Fung's global sourcing, supply chain and operational scale. He described it as a way to expand the portfolio, deepen customer relevance and create new growth opportunities.

The deal adds Sanctuary to a WSG roster that already includes Von Dutch, Nasty Gal and Allbirds. We covered the Nasty Gal purchase, when WSG bought that brand from Debenhams Group for $16 million, a label that had made only £400,000 in adjusted EBITDA last year.

Sanctuary began as a bottoms-driven brand and built its following on cargo and utility pants before expanding into ready-to-wear. Today the line includes denim, sweaters, dresses and outerwear. The founders said the brand grew over nearly 30 years from an idea into a community of women.

Where the brand goes next

The Polancos, who are staying on and remaining actively involved, said the partnership gives Sanctuary greater resources, global reach and new avenues for growth while keeping the point of view and product philosophy intact. Priority expansion regions are the United Kingdom, Europe, the GCC and Middle East, and Asia.

WSG plans to tailor its approach by territory, combining strategic licensing, distribution, retail, digital commerce and local market partnerships. The company also envisions evolving Sanctuary from a primarily apparel-driven business into a broader global lifestyle brand, with new categories covering men's, kids' and home.

The category expansion will centre on areas that naturally fit Sanctuary's existing aesthetic and customer, the company said, creating fresh ways for shoppers to engage with the label across their lifestyles. MMG Advisors served as the exclusive financial adviser to Sanctuary on the transaction.

What the leaders said

The founders said they are proud of what they built, their team, their retail partnerships and the women who made Sanctuary part of their lives. They added that they are excited to stay involved as the brand enters its next chapter.

Jack Cheika, chief executive officer of WSG Brands, said Sanctuary has spent almost three decades building loyalty among contemporary women's customers, with a distinct point of view and lasting relevance. He said the goal is not to change what made the brand successful but to build on it.

Cheika said WSG sees tremendous opportunity to introduce Sanctuary to new consumers worldwide, thoughtfully expand into new categories and supply the resources and global capabilities the brand needs for its next stage of growth. WWD first reported the opportunity last March, when WSG was lining up the money.

The purchase brings Sanctuary into a holding company that has been assembling a stable of direct-to-consumer and heritage names. The Polancos framed the move as a chance to scale the label without abandoning the foundation it was built on, and they intend to remain part of the business.

For Li & Fung, the anchor licence gives the sourcing group a deeper operational role in a profitable brand it already works with through its denim partnership. Kra said the shared ambitions and complementary strengths position both companies to grow the brand portfolio and deepen customer relevance.

The international push and the move into men's, kids' and home are a step up for a label that has traded on utility trousers. WSG has not given a timeline for the category launches or the regional expansion, and it has not named any licensing partners outside Li & Fung.

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Image: WSG Brands