Oroton Group is offloading its stake in Brooks Brothers' Australian operations after just two years, following lower than expected sales.
The luxury goods maker has agreed to sell its interest in the joint venture, which includes 13 stores, to parent company Brooks Brothers Group.
Oroton has not indicated how much it is selling its stake for, but says the deal won't have any impact on its full year profit result.
"It is now appropriate for Brooks Brothers Group to manage the Brooks Brothers business in Australia and for us to further focus our resources on our core Oroton brand, which has significant potential," OrotonGroup chief executive Mark Newman said in a statement on Friday.
Oroton will provide Brooks Brothers with management and administration services for up to two years following the sale, which is expected to be completed by July 25.
At 1423 AEST, shares in Oroton were up 4.5 cents, or 2.43 per cent, at $1.90.
They were $4.70 a year ago.
Oroton went into partnership with Brooks Brothers in 2013 to plug an earnings hole left after its partnership with Polo Ralph Lauren ended.
But Oroton's 2014/15 third-quarter earnings fell by more than $2 million, partly due to sales and margins in Brooks Brothers and Gap - which it also operates in Australia - falling below expectations.
Announcing the results in May, it said it expected full year earnings to be down 66 per cent on the prior year.
AAP sc/cdh
