Sanctuary in Exclusive Talks to Sell Brand to WSG, According to Sources

Core Insights - Sanctuary, a Los Angeles-based sportswear brand, is reportedly in exclusive talks for a potential sale to WSG Group, with the current owners being Ken and Deb Polanco [1][3] Company Background - Sanctuary Clothing was founded in 1997 by Ken and Deb Polanco in Los Angeles and previously sold 50% of the company to the Camuto Group in 2008, later regaining full ownership in 2018 [2] Financial Performance - The brand is profitable within the contemporary women's market, generating approximately $85 million in sales [3] - WSG is seeking $70.5 million in investor equity to fund the acquisition, which includes a $67 million purchase price and $3.5 million in closing costs and fees [4] Strategic Partnerships - Li & Fung has a licensing partnership with Sanctuary, signed in 2024, to produce and distribute a new line of women's premium denim [4] - Under the potential deal, Li & Fung will manage product development, sourcing, supply chain, and sales execution, enhancing operational efficiency while maintaining the brand's identity [5] Growth Projections - WSG anticipates licensing revenues for Sanctuary to increase from $13.9 million in 2026/2027 to $22.4 million in 2030/2031 [6] Retail Expansion - Sanctuary recently opened a 2,000-square-foot flagship store in Beverly Hills, designed to enhance customer engagement and showcase exclusive products [6]