Dana-co Acquires Lunya, a Premium Sleepwear Firm

Dana-co LLC, a New York-based intimate apparel company that partners with and manages premium brands, has acquired the sleepwear and lifestyle brand Lunya.

The acquisition marks a milestone for Dana-co as the company celebrates its 25th year in business and continues to expand its presence across intimate apparel, sleepwear and lifestyle categories. Lunya was acquired from its founder and owner Ashley Merrill, effective June 12, and the purchase price wasn’t disclosed.

Lunya has built an identity in the premium sleepwear market. The brand is recognized for its modern design, functional details and fabric innovation.

“Lunya is a brand with a distinct point of view, strong consumer recognition, and tremendous growth potential,” said Zvi Ertel, president and chief executive officer of Dana-co. “As Dana-co celebrates 25 years in business, we are proud to welcome Lunya into our portfolio and support the next phase of the brand’s evolution.”

He told WWD that Lunya, which had been based in Santa Monica, Calif., will move into Dana-co’s headquarters at 1 East 33rd Street in New York City. As president and CEO of Dana-co, Ertel will oversee the business. Asked how many people are coming along with the brand’s acquisition, he said it was undetermined.

Dana-co plans to build on Lunya’s existing brand equity while bringing operational expertise, product development resources, wholesale relationships, planning discipline, and direct-consumer capabilities to support future growth.

“This acquisition reflects our continued commitment to investing in brands with strong identities, loyal customers, and meaningful long-term opportunity,” added Ertel. “We look forward to honoring what has made Lunya special while expanding its reach through new product development and thoughtful distribution.”

Dana-co will continue to launch new Lunya product and will present the brand during August market. The company will also begin outreach to Lunya’s existing wholesale partners and Dana-co’s broader retail network in coming weeks.

The Lunya brand previously had stores, but now will be strictly direct-to consumer (e-commerce) and a wholesale operation.

In a WWD interview with Ertel in 2023, he said he was looking to acquire new brands to bring into his portfolio. He said he would be looking for brands that “represent something that has meaning, not just because it sells. It would be a brand that I believe has the potential to grow if managed properly and has consumers that are interested. I have to understand the potential of the brand if I look five years out. I’m only interested in the long term.”

The Lunya acquisition is expected to strengthen Dana-co’s position in the premium sleepwear and lifestyle space and represents an important step in the company’s next chapter of growth.

Lunya was founded by Merrill in 2012, and launched its product in 2014. Considered a sleepwear disruptor, Lunya initially sold exclusively through its web site for five years and grew rapidly in 2019 and 2020. The brand peaked at over $50 million in 2020 and 2021. It started to expand its brick-and-mortar stores which drained its finances, among other challenges, and revenues declined. The company entered bankruptcy in June 2023. In court documents, Lunya CEO Blair Lawson, who was named to her post in May 2022 when Merrill took on an advisory role, attributed the company’s distress to over-ordering in 2020, iOS 14-driven digital marketing disruption and persistent losses across the company’s seven retail stores. The company exited bankruptcy on April 1, 2024.

Dana-co is a well-established importer and marketer of better women’s intimate apparel. It sells an array of better department and specialty stores including Nordstrom, Saks Fifth Avenue, Neiman Marcus, Bloomingdale’s and Dillard’s, among others. Dana-co holds the exclusive license for the Natori brand, as well as various sub-brands of Natori, including Josie Natori. In 2014, Dana-co launched Skarlett Blue. It also manages and distributes Oh La La Cheri.