Ralph Lauren has not extended its licensing agreement in Australia and New Zealand with Sydney-based apparel group Oroton, but intends to continue operating its business in the two countries.

The luxury apparel brand, which represents 45% of Oroton's sales, will have to pay around US$30m for inventory and store assets and provide employment for workers. But full details of the transition to Ralph Lauren have not yet been finalised. 

Oroton, which has seven stores in Singapore and Malaysia, also revealed it will open its first stores in Shanghai and Hong Kong in 2013. It will also consider complementary acquisitions of owned and licensed brands it could not pursue before.

"After over 23 years developing the Ralph Lauren brand in Australia and New Zealand we are disappointed to be ending our business partnership," chairman Ross Lane, said.

"However we are pleased to be in a position to accelerate the expansion of the Oroton brand in Asia and potentially pursue other opportunities including capital management."

The company said its full-year 2013 results may be affected by one-off adjustments associated with the transition. The licensing agreement will expire on 30 June.