Oroton has signed a joint venture agreement with American brand Brooks Brothers, in a bid to turn its fortunes since the end of its license partnership with Ralph Lauren.
Oroton will hold a 51 per cent majority in the new agreement, which is intended to run for an initial term of 10 years and with a five-year renewal option.
Four to eight stores will open at the beginning of 2014, along with an online store and a potential move into department store concessions.
Brooks Brothers generates sales to the market of $1 million a year from its online store.
The joint venture is expected to generate $3 million in sales over fiscal 2014 and around $50 million in the fifth year of business.
The move comes less that a week after Oroton announced a profit downgrade, the shock resignation of long-serving CEO Sally Macdonald and a reshuffle of its board.
Mark Newman has been promoted to the position of CEO, having joined Oroton in 2010 as vice president of Ralph Lauren Australia and New Zealand.
Newman also spearheaded the premium fashion brand's push into Asia, where it operates six stores.
Other board changes include the transition of Oroton executive chairman Ross Lane to the role of non-executive director, John Schmoll to chairman and Eddy Chieng from director to chairman of the audit committee.
Last week Oroton announced it expected group earnings before interest and tax to be at around $40 million for 2012/13.
The figure includes a $5 million one-off gain made from the loss of its licence agreement with Ralph Lauren.
Oroton expects earnings to fall sharply again in 2014, following its search for a label to make up for lost earnings from Ralph Lauren.
Ralph Lauren accounted for 45 per cent of group sales and 35 per cent of net profits.
Established in 1818, Brooks Brothers has been the clothier to 39 US presidents as well as famous businessmen, politicians and recently supplied the majority of costumes for Baz Luhrmann film The Great Gatsby.