The Oroton Group is to outsource the supply of its Morrissey and Marcs labels to the Apparel Group, in an attempt to improved product quality and margins, and reduce lead times.

The agreement is due to take effect in November, and comes after poor performance of the Marcs brand in the first half of 2004.

Oroton owns brands including Oroton, Morrissey and Marcs, and is the sole licensee of Polo Ralph Lauren clothing in Australia. It recently signed an exclusive license with footwear and accessories distributor Aldo.

Privately owned Apparel Group has operations in Australia and China.

Director Andrew Michael said the company would take responsibility for product development, manufacturing, quality assurance and supply chain services for the Marcs and Morrissey brands.