SYDNEY: OrotonGroup has signed a new exclusive licence agreement to run Polo Ralph Lauren operations in Australia and New Zealand for three more years.
The agreement has a renewal option for an additional two years subject to satisfaction of confidential business performance hurdles. It commences on July 1, 2010, the day after the current agreement between the two companies expires.
The deal was struck with the The Polo/Lauren Company, L.P. (PRL) which is a subsidiary of Polo Ralph Lauren Corporation.
A statement said the new licence is broadly consistent with the existing agreement. It has some specific changes to royalty levels and "key man" clauses. The clauses require that PRL may terminate the licence if the Lane family, a key stakeholder in OrotonGroup, drops its shareholding below 15 per cent.
OrotonGroup CEO Sally Macdonald said the company looked forward to continuing to develop the brand.
"We expect to open approximately five new stores in FY11, including shop-in-shop concessions, free-standing stores and a factory outlet, of which details are being finalised currently," she said.
Orotongroup has managed the PRL label domestically for over 20 years.