Australia's Oroton signs joint venture deal with Brooks Brothers

Australia's luxury handbag and leather goods retailer Oroton announced on Wednesday that it has signed a joint venture agreement with the iconic American fashion brand Brooks Brothers to develop the Brooks Brothers brand in Australia and New Zealand.

Oroton said it will hold a 51-percent majority in the joint venture company, which is planned to run for an initial term of 10 years with a five-year renewal option.

"We are very excited by the opportunity to partner with such a famous and distinguished brand as Brooks Brothers, and we are looking forward to building a strong and successful business in Australia," Oroton chief executive Mark Newman said in a statement.

"The brand is recognized around the world and already has a loyal customer base here through its online presence."

With flagship store locating in New York, the Brooks Brothers has more than 500 stores around the world, including Korea, Japan, China, Singapore, France, the United Kingdom, Chile, Canada, Italy, Mexico and Greece.

Oroton says Australia is the next step in the global expansion plans for Brooks Brothers and an important strategic growth initiative for Oroton.

Up to eight stores and department store concessions are expected to open in early 2014, with further stores and a local online store to follow soon after.