Oroton Group re-groups
Managing director Ross Lane will step down at December's annual meeting to assume the role of executive chairman.
He will be replaced by Sally Macdonald - a former Boston Consulting consultant and executive at the US retailer Banana Republic - who has advised Oroton Group since May.
The Marcs and Morrissey brands have struggled since Oroton acquired them in 2000 and 2002 for around $25 million, with reports released last month claiming a $9.4 million loss for the group was largely due to goodwill writedowns of around $11 million on the two brands.
Following Oroton's sale of the poorly performing Aldo footwear brand to Busby Holdings Australia last month, the way was now clear to refocus completely on growing the more profitable Oroton and Polo brands, an Oroton spokesperson said.
"The strength of the Polo and Oroton brands is such that it is clearly more prudent to concentrate Oroton's focus on them. While Marcs and Morrissey are strong brands, Oroton and Polo are exceptional," she said.
Incoming head Macdonald said plans were afoot to grow the 28-strong chain of Oroton stores to more than 40 by the end of 2008.
The company was not interested in selling the Marcs and Morrissey brands "at any price or selling them quickly", she added.
Morrissey designer Peter Morrissey sounded an optimistic note claiming the sale of his brand promised new prospects for the "next step in the Morrissey journey".
The change in Oroton Group's direction would not affect a new retail staff incentive scheme covering all Oroton, Marcs, Morrissey, Polo Ralph Lauren, and Aspect stores, confirmed Morrissey communications manager Cat Burke.
The program would see teams from each brand competing for monthly prizes and trophies. Stores would also be assessed on their monthly sales and customer service; points scored would be tallied over the year and the highest scoring team would receive an overseas trip.
The move was designed to attract and retain good staff in a youth-biased market, Burke confirmed.
"Employees traditionally being rewarded with money, but being Generation Y most of our staff would much rather win a fantastic experience," Burke said.