Hanover Direct (AMEX:HNV)
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Hanover Direct Announces the Impact of the Restatement of Its
Financial Statements, the Late Filing of Third Quarter Quarterly Report and
That the AMEX has Halted Trading of the Common Stock
EDGEWATER, N.J., Nov. 17 /PRNewswire-FirstCall/ -- Hanover Direct, Inc. today
announced that the Company has completed its review 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 and
believes that the cumulative impact of this error on previously issued
financial statements through June 26, 2004 is a reduction of revenue and
related income of approximately $2.6 million, subject to the completion by its
independent registered public accountants of their audit and review of the
figures. The Company will restate its 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 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 was not able to file its Quarterly Report on
Form 10-Q for the fiscal quarter ended September 25, 2004 within the five
calendar day extension period it had previously sought but will file its
Quarterly Report on Form 10-Q for the fiscal quarter ended September 25, 2004
as soon as it is able.
The Company further announced that the Audit Committee of the Board of
Directors of the Company is investigating the matters heretofore disclosed by
the Company and other accounting-related matters with the assistance of
independent outside counsel. As a result of the foregoing, the Company has
been advised by the American Stock Exchange that it will halt trading of the
Company's common stock until such time as the investigation is complete and the
Company has filed all relevant periodic reports 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/.
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 10-Q for the fiscal quarter ended June 26, 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, Hanover
Direct, Inc., +1-201-272-3389; or Rich Tauberman of MWW Group,
+1-201-507-9500, for Hanover Direct, Inc.
Web site: http://www.hanoverdirect.com/