Founders who sell after three decades often leave on the day the deal closes. Debra Polanco isn’t. On October 23, 2026, WSG Brands announced it had acquired Sanctuary, the Los Angeles clothing brand she started with her husband, Ken, in 1997, and said both founders would stay “actively involved” in creative direction and product.
| At a glance | |
|---|---|
| Co-founders | Debra and Ken Polanco, husband and wife |
| Company | Sanctuary, Los Angeles; founded 1997 |
| Started as | Pant makers, known for utility styles |
| Sells today | Ready-to-wear, petites, curve, swim, footwear, accessories |
| Buyer | WSG Brands, announced October 23, 2026 |
| Price | Not disclosed |
| Founders’ role | Remain involved in creative direction, product vision and positioning |
| Anchor licensee | Li & Fung, for women’s ready-to-wear |
Thirty years from the pant up
The announcement describes Sanctuary’s start plainly: it “began as master pant makers” and is known for its pant and utility heritage. From that base the Polancos built a contemporary women’s brand that now covers ready-to-wear, petites, curve sizes, swim, footwear and accessories, sold through an established wholesale business, longstanding retail partners and a growing direct-to-consumer site.
The co-founders’ statement was brief. “We’re excited to remain actively involved as Sanctuary enters this next chapter,” Debra and Ken Polanco said.
What WSG plans to do with it
WSG Brands buys established consumer names and grows them mostly through licensing. A month earlier it had bought Nasty Gal from Debenhams Group for £12 million, and the Sanctuary plan follows the same pattern. Li & Fung becomes the anchor licensee for the existing women’s ready-to-wear business. WSG wants to turn Sanctuary from a mainly apparel company into a lifestyle brand, adding men’s, kids’ and home, and to grow in the UK, Europe, the GCC and Middle East, and Asia, where the announcement says the brand is underpenetrated.
“Our goal is not to change what has made Sanctuary successful, but to build upon it,” said WSG chief executive Jack Cheika. MMG Advisors advised Sanctuary on the sale.
Two WSG deals, two different founder stories
Set side by side, WSG’s two 2026 purchases of women-founded fashion brands show how differently founders can come out of a sale. Sophia Amoruso had no reported part in either of Nasty Gal’s sales. The Polancos sold their own company, on terms they haven’t disclosed, and stay inside it.
Couples who build brands together are a recurring thread on this site. Jacq Tatelman co-founded STATE Bags with her husband, Scot, and took over as CEO when their hired chief executive quit by email. Candace Nelson started Sprinkles with her husband, Charles, sold it to private equity in 2012 and kept no role, then watched it close in 2025. Debra Polanco’s version keeps the founders in the room after the sale, at least for now.
The announcement doesn’t give Sanctuary’s revenue, the sale price, or how long the Polancos’ involvement is set to last, and we don’t estimate any of them.
Source: WSG Brands’ announcement via PR Newswire, October 23, 2026. Last checked October 28, 2026.
Frequently asked questions
Who founded Sanctuary clothing?
Ken and Debra Polanco, a husband-and-wife team, founded Sanctuary in Los Angeles in 1997, per WSG Brands' October 2026 announcement.
Who owns Sanctuary clothing now?
WSG Brands, a global brand management firm, which announced the acquisition on October 23, 2026. The price was not disclosed. WSG also bought Nasty Gal in September 2026.
Are the founders still involved with Sanctuary?
Yes. The announcement says Ken and Debra Polanco remain actively involved in the operating business, providing continuity in creative direction, product vision, positioning and community connection.
What will change at Sanctuary under WSG Brands?
WSG plans to grow it from mainly apparel into a broader lifestyle brand, adding men's, kids' and home, and to expand in the UK, Europe, the GCC and Middle East, and Asia through licensing, distribution and local partners. Li & Fung becomes the anchor licensee for the women's ready-to-wear business.