EXHIBIT 99.4

                                 GENERAL RELEASE

     TO ALL TO WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT Hanover
Direct, Inc., a Delaware corporation with its principal place of business at 115
River Road, Edgewater, New Jersey 07020 ("RELEASOR"), and RELEASOR'S parents,
affiliates, subsidiaries, predecessor firms, shareholders, officers, directors,
members, managers, employees, agents, current and former partners, current and
former principals, alliances, co-venturers, heirs, estates, executors, personal
representatives, administrators, predecessors, successors, assigns and
third-parties in consideration of the sum of $10.00 and more, and other good and
valuable consideration, receipt of which is hereby acknowledged, release,
discharge and acquit forever Chelsey Direct, LLC, a Delaware limited liability
company with its principal place of business at 712 Fifth Avenue, New York, New
York 10019 (the "RELEASEE"), RELEASEE's parents, affiliates, subsidiaries,
predecessor firms, shareholders, officers, directors, members, managers,
employees, agents, current and former partners, current and former principals,
alliances, co-venturers, heirs, estates, executors, personal representatives,
administrators, predecessors, successors, assigns and third-parties from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, claims for attorneys'
fees, claims for injunctive relief, judgments, extents, executions, claims and
demands whatsoever, whether known or unknown, in law, admiralty or equity, which
the RELEASOR and the RELEASOR'S parents, affiliates, subsidiaries, predecessor
firms, shareholders, officers, directors, members, managers, employees, agents,
current and former partners, current and former principals, alliances,
co-venturers, heirs, estates, executors, personal representatives,
administrators, predecessors, successors, assigns and third-parties ever had,
now have or hereafter can, shall or may have, for, upon or by reason of any
matter, cause or thing whatsoever against RELEASEE from the beginning of the
world to the date of this Release.

         1.       Nothing in this Release is intended to, nor shall, waive or
release any of the rights or obligations of the parties under a certain
Recapitalization Agreement dated as of November 18, 2003 and executed by the
Parties hereto in connection with this Release (the "Recapitalization
Agreement") or any of the other agreements entered into in connection with the
Recapitalization Agreement.

         2.       The signatory to this Release hereby warrants and represents
that he is duly authorized to enter into this Release on behalf of the persons
and entities on whose behalf he purports to act.


         3.       This Release shall in all respects be interpreted, enforced
and governed under the laws of the State of New York without regard to New
York's conflicts of laws principles.

         4.       Whenever text hereof requires, the use of the singular number
shall include the appropriate plural number.



         5.       This Release may not be changed orally.

     IN WITNESS WHEREOF, this Release has been executed as of the date set forth
below.

                                            HANOVER DIRECT, INC.

                                            By: Thomas C. Shull
                                                --------------------------------

                                            Title: President
                                                   -----------------------------

                                            Date: November 30, 2003


                                ACKNOWLEDGMENT


STATE OF NEW YORK       )
                                )  ss.:
COUNTY OF NEW YORK      )


     On the 30th day of November, 2003, before me personally came Thomas C.
Shull, to me known, who by me duly sworn, did depose and say that deponent
resides at __________________________, CT 06878, that deponent is a duly
authorized representative of Hanover Direct, Inc., the entity described herein
as Releasor and which executed the foregoing Release, and that deponent signed
deponent's name thereto by authority of Hanover Direct, Inc.


                                    /s/ Sarah Hewitt
                                -------------------------
                                      Notary Public