Hilo Hattie will open a new, 29,000-square-foot flagship store in Waikiki at the Royal Hawaiian Shopping Center in July.
The company reached an agreement over an amended lease with landlord Kamehameha Schools.
The new store will be called Hilo Hattie at the Beach. Design work on the store will begin by the end of this year, with construction starting in February.
The company, which filed for Chapter 11 bankruptcy protection this month, has said it plans to put its 76,000-square-foot leasehold building on Nimitz Highway, site of its current flagship store, up for sale.