WSG Brands has officially acquired Sanctuary, a contemporary women's label with approximately $85 million in annual sales. The deal aims to evolve the 1997-founded brand from a clothing-focused label into a global lifestyle powerhouse.
From 1997 utility pants to an $85 million powerhouse
Sanctuary has spent nearly three decades building a reputation in the contemporary women's market.. Originally founded in Los Angeles in 1997 by husband-and-wife team Ken and Debra Polanco, the brand initially gained its following through utility-driven pieces like cargo pants before expanding into a full ready-to-wear collection.
The brand currently maintains a strong commercial presence, with wholesale accounts making up 70 percent of its business. According to the report, major retaiil partners such as Nordstrom and Bloomingdale’s continue to anchor its distribution, alongside a growing direct-to-consumer presence and a recent 2,000-square-foot flagship store on North Beverly Drive. In a statement, the Polancos expressed excitement about the partnership, noting it provides the resources to reach more women globally while staying true to their original product philosophy.
Targeting the UK, Middle East, and Asia for global growth
WSG Brands plans to take Sanctuary far beyond its current footprint through a multi-territory expansion strategy. The new owners are prioritizing rapid growth in the United Kingdom, Europe, the Middle East (GCC), and Asia.
This expansion will be achieved through a combination of strategic licensing, digital commerce, and local market partnerships tailored to each specific territory. Beyond just selling more clothing, WSG Brands envisions a significant evolution for the label. The goal is to transform Sanctuary from a primarily apparel-driven business into a broader global lifestyle brand, introducing new categories such as men’s, kids’, and home goods that naturally complement the brand's existing aesthetic.
How Li & Fung will anchor the brand's new scale
Li & Fung is set to play a critical role in the brand's operational evolution as the anchor licensee for Sanctuary’s women’s ready-to-wear line. This partnership leverages Li & Fung's massive global sourcing, supply chain capabilities, and decades of experience to support Sanctuary's next stage of growth.
The collaboration is built on an existing foundation of cooperation. As the report notes, Li & Fung signed a licensing partnership with Sanctuary earlier in 2024 to produce and distribute a line of premium denim. Jason Kra, president of L&F Markets USA, highlighted that the partnership brings together complementary strengths, combining Sanctuary's strong commercial platform and customer base with Li & Fung's operational scale.
What remains unconfirmed about the $70.5 million equity deal
While the acquisition is moving forward, several financial and operational details remain unverified. As WWD reported last March, documents suggested that WSG Brands was seeking $70.5 million in investor equity to cover the $67 million purchase price and related closing fees.
The transition also involves a shift in how the brand manages its costs. Earlier reports indicated a plan to have the brand led by Li & Fung to reduce operational risk and convert fixed costs into a royalty-driven earnings profile. However, it remains to be seen how quickly the brand will successfully pivot into the men's and home sectors. Additionally, the specific timeline for these new category launches and the exact level of continued involvement from the Polanco family remain open questions for industry observers.
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