The grandson of Oroton founder Boyd Lane has been handed the reins of the struggling handbag retailer after the immediate resignation of chief executive Mark Newman.
Mr Newman's four years as OrotonGroup CEO came to an end just weeks after the retailer reported a steep fall in half year sales and profit.
Board member Ross Lane, a former managing director and chairman of the company who owns a 21.85 per stake in Oroton with his father and siblings, will serve as interim CEO.
The retailer's net profit plunged 52 per cent to $1.8 million in the six months to January 28, as like-for-like sales dropped 11 per cent from the same period a year earlier.
Oroton blamed weaker sales on its shift away from women's apparel, shoes and lingerie, lower sales at its factory outlets and a decline in sales at its seven GAP stores.
Chairman John Schmoll offered no explanation for Mr Newman's sudden departure, but thanked him for his loyal service and for leading the group during the early stages of its transformation.
He said Mr Lane has an intimate knowledge of the business and its current initiatives, which include a shift towards targeting younger women that will result in the company ending its relationship with actress Rose Byrne and building its use of young, social media-savvy "influencers".
"This knowledge together with Ross's broad retail experience from active participation in the successful growth of a number of other retail businesses means Ross is ideally qualified to lead the company during this important period of transition," Mr Schmoll said.
Mr Lane's base salary will be $610,000 a year, including superannuation, and a short term incentive of 50 per cent of his base salary.
Mr Newman joined Oroton in 2010, initially as vice president of Ralph Lauren Australia and New Zealand, when Oroton had a partnership with the luxury clothing label before being appointed chief executive in August 2013.
Oroton shares were up one cent at $1.62 nearing the close of trade, after hitting a 10-year low of $1.45 in February.
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