Upscale apparel retailer Oroton International is set to snap up hip fashion house Marcs for an undisclosed sum.

The owner of outlets of Polo Ralph Lauren and Morrissey labels said it has entered into an exclusive heads of agreement with Mark Keighery to buy the Marcs fashion business, which includes 16 retail outlets and a wholesale business.

Oroton CFO Andrew Smith said: "The board and management of Oroton Group are excited about signing this agreement as it fits within our strategy of building premium lifestyle brands in fashion related businesses."

Oroton, which has its own brand lingerie and men’s underwear products, revealed in September it was experiencing tough trading conditions and lower sales at the start of its new fiscal year.

In the same month it also posted a record net profit of A$6.4 million on the back of a 22 per cent jump in sales to A$87.4m.