WSG Brands Acquires Contemporary Label Sanctuary
The investment firm plans to scale the women's apparel brand into a global lifestyle company.
Updated on Oct. 21, 2026 in Fashion
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WSG Brands has acquired Sanctuary, a contemporary women's lifestyle brand that currently generates $85 million in annual sales. The deal positions the company for international expansion across the United Kingdom, Europe, the Middle East, and Asia.
Why it matters
The acquisition provides Sanctuary with the operational scale and supply chain resources necessary to evolve from a traditional apparel business into a comprehensive lifestyle brand. By leveraging new partnerships, the firm aims to expand into men's, kids', and home product categories.
Founded in 1997, Sanctuary maintains 70 percent of its operations through wholesale channels at retailers like Nordstrom and Bloomingdale's. The brand currently operates a 2,000-square-foot flagship store in Beverly Hills.
The players
WSG Brands
This investment firm manages a diverse portfolio of consumer brands including Von Dutch, Nasty Gal, and Allbirds.
Sanctuary
This contemporary women's lifestyle brand was established in 1997 and specializes in ready-to-wear apparel.
Li and Fung
This global supply chain manager provides sourcing and operational infrastructure for major retail brands.
Ken and Debra Polanco
These industry entrepreneurs founded the Sanctuary brand in Los Angeles.
The details
Li and Fung will continue its role as the anchor licensee for Sanctuary women's ready-to-wear, providing global sourcing and supply chain capabilities. WSG Brands adds the label to a portfolio that already features brands such as Von Dutch, Nasty Gal, and Allbirds.
Timeline
1997: Sanctuary was founded in Los Angeles.
2024: Li and Fung signed a licensing partnership with Sanctuary.
March 2026: WWD first reported on the acquisition process.
October 15, 2026: WSG Brands announced the completed acquisition.
Culture Shift
The acquisition reflects a broader shift toward consolidating independent apparel labels under global holding companies to survive in a competitive retail environment. By integrating into a larger portfolio, brands like Sanctuary can pivot from niche fashion lines to expansive lifestyle ecosystems.
The acquisition is expected to eventually diversify the brand's product offerings beyond women's apparel. Shoppers may soon see men's, kids', and home goods available through existing retail partners like Nordstrom and Bloomingdale's.
The takeaway
The move demonstrates how established apparel brands utilize licensing partnerships and acquisition capital to bypass traditional growth plateaus. Consumers can anticipate a wider variety of home and family-oriented products as the label scales its operations.
Further reading
For more on industry developments, visit the Fashion section.
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