Hanover Direct Announces the Filing of a Form 12b-25 Notification of Late Filing With the Securities and Exchange Commission and

Hanover Direct Announces the Filing of a Form 12b-25 Notification
of Late Filing With the Securities and Exchange Commission and the Restatement
of Its Financial Statements 


EDGEWATER, N.J., Nov. 10  /PRNewswire-FirstCall/ -- Hanover Direct, Inc. today
announced that management and the Audit Committee of the Board of Directors
concluded that the Company's financial statements for the fiscal years ended
December 25, 1999, December 30, 2000, December 29, 2001, December 28, 2002 and
December 27, 2003 and the fiscal quarters ended March 29, 2003, June 28, 2003,
September 27, 2003, March 27, 2004 and June 26, 2004 should no longer be relied
upon and should be restated as a result of an error in the accounting treatment
of discount obligations due to members of certain of the Company's buyer's club
programs for three of its catalogs since 1998.  The cumulative impact of this
error as of September 25, 2004 is in the process of being estimated by the
Company.  However, it did result in the overstatement of revenues and the
omission of the related liability for discount obligations for fiscal periods
as early as 1998.  The final determination of the error is subject to
completion of the Company's currently ongoing review of the issue and the
completion by its independent registered public accountants of their audit and
review of the figures.  The Company's decision to restate previously issued
financial statements was based on its current assessment of the impact of the
cumulative correction on the Company's 2004 financial statements.  The Company
will file the restated audited financial statements and related auditors'
report by amending its Annual Report on Form 10-K for the fiscal year ended
December 27, 2003 and its Quarterly Reports on Form 10-Q for the fiscal
quarters ended March 27, 2004 and June 26, 2004 as promptly as practicable.

The Company also announced that it has filed a Form 12b-25 Notification of Late
Filing with the Securities and Exchange Commission seeking to extend the
deadline for filing its Quarterly Report on Form 10-Q for the fiscal quarter
ended September 25, 2004 up to five calendar days in order to calculate
accurately the precise impact of the discount obligations due to members of
certain of the Company's buyer's club programs on the historical financial
statements.  The Company will file its Form 10-Q for the fiscal quarter ended
September 25, 2004 as soon as it is able.

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/.

Forward Looking Statements

Certain statements included in this press release are intended as
"forward-looking statements."  These statements include assumptions,
expectations, predictions, intentions or beliefs about future events,
particularly the statements concerning the anticipated impact on revenues of
the restatement and the timing of the Company's restatement of its financial
statements.  The Company cautions that actual future results may vary
materially from those expressed or implied in any forward-looking statements.
More information and the risks and uncertainties relating to these
forward-looking statements are found in the Company's SEC filings, including
its Annual Report on Form 10-K for the fiscal year ended December 27, 2003 and
its Quarterly Report on Form 1-Q for the fiscal quarter ended June 25, 2004
which are available free of charge on the SEC's web site at http://sec.gov/.
The Company expressly disclaims any obligation to update any forward-looking
statements contained in this news release to reflect events or circumstances
that may arise after the date of this release, except as otherwise required by
applicable law. 

DATASOURCE: Hanover Direct, Inc.



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

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

[phone], for Hanover Direct



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

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