Hanover Direct Announces Plans to Consolidate Its Wisconsin Distribution Operations Into Its Virginia Facility

Hanover Direct Announces Plans to Consolidate Its Wisconsin
Distribution Operations Into Its Virginia Facility 


EDGEWATER, N.J., June 30  /PRNewswire-FirstCall/ -- Hanover Direct, Inc.
(AMEX:HNV) today announced plans to consolidate its Company Store distribution
operations in La Crosse, Wisconsin into its Roanoke, Virginia facility.

The consolidation will occur over the next 12 months and is prompted by the
lack of sufficient warehouse space in its leased Wisconsin facilities. The
630,000 square foot Roanoke facility owned by the Company, however, has excess
capacity that was originally engineered in 1995 to support the Company's "home
core" product line.  This decision does not impact the Company's call center,
manufacturing facility or outlet stores also located in Wisconsin which
combined employ approximately 640 people.

"Consolidating these facilities positions the Company for future growth in our
'home core' businesses and will allow us to service our customers more
efficiently, while reducing our overall cost structure once the consolidation
is completed," stated Wayne Garten, the Company's President and Chief Executive
Officer.  Mr. Garten added that, "This decision is in no way a reflection on
the services provided by the Wisconsin team but more of the success of The
Company Store business and its need for more capacity than our current
Wisconsin facilities will support."

Although implementation of the consolidation plan will occur over the next 12
months, discussions have begun today with representatives of Local 379 of The
Union of Needletrades, Industrial and Textile Employees (UNITE!) to discuss the
Company's plan and its impact on the union employees.

Forward-Looking Statements

The matters discussed in this news release may include forward-looking
statements (within the meaning of the Private Securities Litigation Reform Act
of 1995) by officers of the Company.  Important factors that could cause actual
results to differ materially from those in such forward-looking statements
include, without limitation, the matters discussed in the Management's
Discussion and Analysis section of the Company's most recent quarterly report
on Form 10-Q and other filings with the Securities and Exchange Commission
under the caption "Cautionary Statements."

We undertake no obligation to publicly update any forward-looking statement
whether as a result of new information, future events or otherwise. You are
advised, however, to consult any further disclosures we make on related
subjects in our Forms 10-Q, 8-K, 10-K or any other reports filed with the
Securities and Exchange Commission.

About Hanover Direct, Inc.

Hanover Direct, Inc. (AMEX:HNV) and its business units provide quality, branded
merchandise through a portfolio of catalogs and e-commerce platforms to
consumers, as well as a comprehensive range of Internet, e-commerce, and
fulfillment services to businesses.  The Company's catalog and Internet
portfolio of home fashions, apparel and gift brands include Domestications, The
Company Store, Company Kids, Silhouettes, International Male, Scandia Down, and
Gump's By Mail.  The Company owns Gump's, a retail store based in San
Francisco.  Each brand can be accessed on the Internet individually by name. 
Keystone Internet Services, LLC (http://www.keystoneinternet.com/), the
Company's third party fulfillment operation, also provides the logistical, IT
and fulfillment needs of the Company's catalogs and web sites.  Information on
Hanover Direct, including each of its subsidiaries, can be accessed on the
Internet at http://www.hanoverdirect.com/. 

DATASOURCE: Hanover Direct, Inc.



CONTACT:  Charles E. Blue, S.V.P. & Chief Financial Officer of Hanover

Direct, Inc., [phone]; or Rich Tauberman of MWW Group,

[phone], for Hanover Direct, Inc.



Web site:  http://www.hanoverdirect.com/

http://www.keystoneinternet.com/ 

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