<\/p>\n
\n\tIs Sanctuary, the L.A. sportswear brand, about to change hands?<\/p>\n
\n\tAccording 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.<\/p>\n
\n\tThe 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. <\/p>\n
\t\t\t\t\tKen and Deb Palanco<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy image<\/p>\n
\n\tAccording 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\u2019s 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.<\/p>\n
\n\tThere 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\u2019s premium denim.<\/p>\n
\n\tOfficials at WSG, Li & Fung and Sanctuary couldn\u2019t 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.<\/p>\n
\n\tUnder the potential deal, Li & Fung will oversee product development, sourcing, supply chain and sales execution, ensuring continuity of the brand\u2019s 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\u2019s operating capabilities. WSG would also expand Sanctuary\u2019s licensing revenues across additional categories and international territories, according to the documents.<\/p>\n
\n\tWSG predicts licensing revenues to grow from $13.9 million in 2026\/2027 to $22.4 million in 2030\/2031. <\/p>\n
\n\tLast 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.<\/p>\n
\n\tStarting 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\u2019s. 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.<\/p>\n
\n\tAt 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.<\/p>\n
\n\tSanctuary also has diffusion brands in the market, providing incremental revenue without diluting the core brand.<\/p>\n
\n\tIn addition to Sanctuary, Li & Fung\u2019s core licensees include Express, Pendleton, Lands\u2019 End, Vera Bradley, and Loft.<\/p>\n
\n\tIn 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\u2019s business through expanded retail distribution, collaborations and a stronger omnichannel presence in the U.S.<\/p>\n
#Sanctuary #Enters #Exclusive #Talks #Sell #Brand #WSG #Sources<\/p>\n","protected":false},"excerpt":{"rendered":"
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