OrotonGroup, an Australian luxury retailer, has entered into a joint venture agreement with American fashion company Brooks Brothers to launch and develop the brand in Australia and New Zealand.
As per the terms of the agreement, Oroton will own 51% stake in the joint venture for a 10-year period, which can be renewed for another five years.
Under the joint venture, Oroton will open physical outlets and national online stores.
OrotonGroup CEO and managing director Mark Newman said that the company is excited to partner with Brooks Brothers and is looking forward to develop a strong and successful business in Australia.
"The brand is recognized around the world and already has a loyal customer base here, through its online presence. The partnership is an endorsement of our skills and expertise in managing premium international brands in our home country," added Newman.
"The partnership is an endorsement of our skills and expertise in managing premium international brands in our home country."
Initially, the luxury retailer will open four to eight Brook Brothers stores and/or department store concessions beginning from 2014.
Additional stores and online website are expected to be launched soon after.
Brooks Brothers chairman and CEO Claudio Del Vecchio said, "We have partnered with OrotonGroup because of their passion for the Brooks Brothers brand, their track record with other premium brands and their retail expertise and connections within Australia & New Zealand."
Oroton may choose, or be required by Brooks Brothers, to exit the joint venture for fair market value after five years in certain circumstances.
The luxury retailer estimates that the joint venture will generate revenues of around $3m during fiscal 2014, with expectations to increase to $50m by the fifth year of business.