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San Francisco – Gap Inc. has reportedly signed a non-binding agreement for Australia-based Oroton Group to take control of its franchise operation in Australia, New Zealand, and some Pacific islands. According to the Wall Street Journal, Oroton Group will start running Gap’s three franchise stores in Australia in November 2013 and purchase some inventory and store fixtures from current Gap franchisee Brand Republic Pty Ltd.
Brand Republic has been Gap’s Australian franchisee since 2010 and had planned to open 10-15 Gap stores by 2014. Oroton Group also recently signed a 10-year Australian franchise agreement with Brooks Brothers and had a license to distribute Ralph Lauren apparel in Australia and New Zealand expire in June 2013.