WSG Brands said Thursday it has acquired Sanctuary, the Los Angeles-based contemporary women’s lifestyle brand.
News that WSG secured the opportunity to acquire Sanctuary was first reported by WWD last March, when WSG was said to be in the process of lining up the money. Sanctuary is profitable within the contemporary women’s market with approximately $85 million in sales.
The purchase price wasn’t revealed.
Founded in L.A. in 1997 by husband-and-wife team Ken and Debra Polanco, Sanctuary has an established wholesale business, growing direct-to-consumer presence and long-standing relationships with leading retail partners.
The acquisition adds Sanctuary to WSG’s growing roster of brands which include Von Dutch, Nasty Gal and Allbirds.
“Over nearly 30 years, Sanctuary has grown from an idea into a brand and community that means so much to us. We’re incredibly proud what we’ve built, our team, our long-standing retail partnerships and, most importantly, the women who have made Sanctuary part of their lives,” said Debra and Ken Polanco, cofounders, in a statement. “This partnership gives Sanctuary the opportunity to build on that foundation with greater resources, global reach and new avenues for growth, while staying true to the point of view and product philosophy that have defined the brand from the beginning. We’re excited to remain actively involved as Sanctuary enters this next chapter and to see the brand reach more women around the world.”
Priority regions for expansion include the United Kingdom, Europe, GCC/Middle East and Asia, with a combination of strategic licensing, distribution, retail, digital commerce and local market partnerships tailored to each territory. WSG also envisions evolving Sanctuary from a primarily apparel-driven business into a broader global lifestyle brand. Future category expansion will cover men’s, kids’ and home, focusing on areas that naturally complement Sanctuary’s existing business, aesthetic and consumer, while creating new ways for customers to engage with the brand across their lifestyles.
Jack Cheika, chief executive officer of WSG Brands, said: “Sanctuary has built an incredibly strong brand over nearly three decades, with a clear point of view, deepening consumer loyalty and enduring relevance in the contemporary women’s market. Our goal is not to change what has made Sanctuary successful, but to build upon it. We see tremendous opportunity to bring the brand to new consumers around the world, thoughtfully expand into new categories and provide the resources and global capabilities to support its next stage of growth.”
As reported last March, documents obtained by WWD revealed that WSG was looking for $70.5 million of investor equity, that included the $67 million purchase price, along with $3.5 million in closing costs and fees. Documents had revealed that the plan was for the brand was to be led by Li & Fung, which would reduce operational risk, improve scalability and convert fixed costs into a royalty-driven earnings profile.
Li & Fung will serve as the anchor licensee of Sanctuary’s existing business in women’s ready-to-wear. Li & Fung already has a connection with Sanctuary, having signed a licensing partnership with the brand in 2024 to produce and distribute a line of women’s premium denim.
Jason Kra, president of L&F Markets USA, said: “What excites me most about this partnership is not simply adding another brand to our portfolio. It is the opportunity to bring together talented people with complementary strengths and shared ambitions. Sanctuary brings a strong commercial platform, established sales relationships, a long-standing customer base and deep expertise in brand building and product creation. Li & Fung brings global sourcing, supply chain capabilities, operational scale and decades of experience helping businesses grow. Together, these complementary strengths position us to expand our brand portfolio, deepen customer relevance and create new growth opportunities.”
MMG Advisors served as the exclusive financial adviser to Sanctuary on this transaction.
Earlier this year, Sactuary opened a 2,000-square-foot flagship at 358 North Beverly Drive in Beverly Hills.
Starting as a bottoms-driven brand, Sanctuary earned a following for its cargo and utility pants before expanding into ready-to-wear. Today the brand features denim, sweaters, dresses and outerwear. Wholesale accounts for 70 percent of the business and its retail partners include Nordstrom and Bloomingdale’s.