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US brand Brooks Brothers expands into NZ & Australia
Aug '13
OrotonGroup is pleased to announce that it has signed a joint venture agreement with the iconic American brand Brooks Brothers to develop the Brooks Brothers brand in Australia & New Zealand. The agreement to establish the joint venture is subject to a notice to the Australian Competition and Consumer Commission with respect to product sourcing coming into force.

OrotonGroup will hold a majority of 51% in the joint venture company. The parties intend for the joint venture to operate for an initial term of 10 years with a 5 year renewal option. OrotonGroup may choose, or be required by Brooks Brothers, to exit the joint venture for fair market value after 5 years in certain circumstances. There are also ‘event of default’ exit rights, including upon a change of control.

Brooks Brothers is an internationally renowned men’s and women’s heritage brand established in 1818 with strong repeat business and exciting potential in the Australia/New Zealand market. It has the unique distinction of being the clothier to 39 out of 44 US Presidents.

Additionally Brooks Brothers dresses many of the world’s most famous businessmen, politicians and celebrities and recently supplied most of the men’s costumes for Baz Luhrmann’s film “The Great Gatsby.”

Since its founding 195 years ago in New York, Brooks Brothers has become a legendary international retailer while maintaining a steadfast commitment to exceptional service, quality, style and value.

Mr. Claudio Del Vecchio, Chairman and CEO of Brooks Brothers, has said of the collaboration, “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. We are incredibly fortunate to have them as a partner as we enter this important market.”

As of 2013, there are over 500 Brooks Brothers stores worldwide in over 25 countries, including, Korea, Japan, China, Taiwan, Singapore, France, The United Kingdom, Chile, Canada, Italy, Mexico and Greece.

Australia is a natural next step in the global expansion plans for Brooks Brothers and an important strategic growth initiative for OrotonGroup considering its previous experience in developing leading international lifestyle brands in the region. Commenting on the partnership, Mr. Mark Newman CEO/MD of OrotonGroup said “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.

The first 4-8 stores and/or department store concessions are expected to open at the beginning of 2014 with further stores and a local online store to follow soon after.

The existing Brooks Brothers online business to Australia is currently trading at over $1M in sales per year without any local store presence. 


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