WSG Brands, owner of Von Dutch and Allbirds, buys LA label Sanctuary and names Li & Fung its anchor licensee

WSG Brands, whose portfolio includes Von Dutch, Nasty Gal and Allbirds, has acquired Sanctuary, a Los Angeles contemporary women’s lifestyle brand, WWD reported on 21 October. The purchase price was not disclosed.

The brand

Sanctuary was founded in Los Angeles in 1997 by husband-and-wife team Ken and Debra Polanco. It is profitable, has about $85 million in sales, an established wholesale business and a growing direct-to-consumer arm, and opened a flagship in Beverly Hills last month. The founders said they will remain actively involved.

Licensing model

Li & Fung will be the anchor licensee for Sanctuary’s existing women’s ready-to-wear business; it already produces a Sanctuary premium denim line under a 2024 licence. Documents obtained by WWD in March showed WSG planned to raise $70.5 million of investor equity, including a $67 million purchase price, and to use a royalty-driven, licence-led model to reduce operating risk.

Expansion plans

Priority regions are the UK, Europe, the GCC/Middle East and Asia, through licensing, distribution, retail, e-commerce and local partners. WSG also wants to turn Sanctuary into a broader lifestyle brand with men’s, kids’ and home categories. “Our goal is not to change what has made Sanctuary successful, but to build upon it,” said WSG chief executive Jack Cheika.