Is Sanctuary, the L.A. sportswear brand, about to change hands?
According to sources, the brand, which is owned by Ken Polanco, cofounder and chief executive officer, and Deb Polanco, cofounder and chief creative director, is looking to sell and is in exclusive talks with WSG Group.
The Polancos founded Sanctuary Clothing in Los Angeles in 1997. They sold about 50 percent of the company to the Camuto Group in 2008 only to buy back full ownership a decade later.
Ken and Deb Palanco
Courtesy image
According to sources, WSG Brands has now secured the opportunity to acquire Sanctuary, but is still lining up the money. The brand, which has an established wholesale platform, is said to be profitable within the contemporary women’s market with approximately $85 million in sales. According to documents obtained by WWD, the plan is for the brand to be led by Li & Fung, which would reduce operational risk, improve scalability and convert fixed costs into a royalty-driven earnings profile.
There is already a Li & Fung connection as the company signed a licensing partnership with Sanctuary in 2024 to produce and distribute a new line of women’s premium denim.
Officials at WSG, Li & Fung and Sanctuary couldn’t be reached for comment. According to the documents, WSG is looking for $70.5 million of investor equity, which must be fully funded by March 25. That includes the $67 million purchase price, along with $3.5 million in closing costs and fees.
Under the potential deal, Li & Fung will oversee product development, sourcing, supply chain and sales execution, ensuring continuity of the brand’s DNA, while enhancing global infrastructure and operational efficiency. The partnership with Li & Fung allows Sanctuary to maintain its identity while benefiting from the its partner’s operating capabilities. WSG would also expand Sanctuary’s licensing revenues across additional categories and international territories, according to the documents.
WSG predicts licensing revenues to grow from $13.9 million in 2026/2027 to $22.4 million in 2030/2031.
Last month, Sanctuary opened a 2,000-square-foot flagship at 358 North Beverly Drive in Beverly Hills. The flagship showcases exclusive capsules, early drops and a selection of upcycled vintage and pre-loved pieces. Beyond product, the space is intended to be a testing ground for deeper customer engagement.
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 produces denim, sweaters, dresses and outerwear. Wholesale accounts for 70 percent of the business and its retail partners include Nordstrom and Bloomingdale’s. Deb Polanco told WWD last month they plan to open a second flagship, most likely in New York, with a goal of operating 10 stores by 2030.
At WSG, the brand would have a foundation in licensing. It is expected to evolve into a broader multicategory lifestyle brand, with increasing royalty contribution and higher-margin revenue streams. According to the overview from WSG, the strategy is to reposition Sanctuary from a traditional apparel operator into a global brand management platform with enhanced profitability and premium exit optionality.
Sanctuary also has diffusion brands in the market, providing incremental revenue without diluting the core brand.
In addition to Sanctuary, Li & Fung’s core licensees include Express, Pendleton, Lands’ End, Vera Bradley, and Loft.
In 2024 WSG acquired Von Dutch, the Hollywood fashion and lifestyle brand. Under its new ownership, Von Dutch is now headed by longtime industry veterans Jack Cheika, chief executive officer, and Marc Benitez, chief operating officer of WSG. The deal looked to broaden Von Dutch’s business through expanded retail distribution, collaborations and a stronger omnichannel presence in the U.S.
#Sanctuary #Enters #Exclusive #Talks #Sell #Brand #WSG #Sources