HANOVER DIRECT SAYS IT WILL SELL TWO DIVISIONS

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(April 3, 2001) -- Hanover Direct, a direct marketer of home goods, apparel and gifts via catalogs and the Internet, laid off 24 from its 2,900-person workforce. The move follows 285 job cuts the Weehawken, N.J.-based company made in January.

The layoffs are part of the company's continuing strategy to focus on its home-furnishing and decorating units. The company plans to sell its gift and men's apparel divisions as well as its Hanover, Pa.-based warehouse.

Hanover reported net losses of $80.8 million on $603 million in revenue for 2000, up from 1999 losses of $16.3 million on $549.9 million in revenue. The company cited rapid expansion of its business-to-business, third-party fulfillment division and charges from the December restructuring as reasons for the losses.

The units to be sold include Hanover's Gump's By Mail catalog, Gump's retail store, and men's clothing catalogs International Male and Undergear. Earlier this year, Hanover elminated several underperforming catalogs. The restructuring will allow the company to focus on its home and decorating units Company Store, Domestications and Improvements, as well as its women's apparel division, Silhouettes.

Hanover hired Newmark Retail Financial Advisorts to manage the sales. -- Cara Beardi

Copyright April 2001, Crain Communications Inc.

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