EXHIBIT 99.5

                                 GENERAL RELEASE

     TO ALL TO WHOM THESE PRESENTS SHALL COME OR MAY CONCERN, KNOW THAT Chelsey
Direct, LLC, a Delaware limited liability company with its principal place of
business at 712 Fifth Avenue, New York, New York 10019 ("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 Hanover Direct, Inc., a
Delaware corporation with its principal place of business at 115 River Road,
Edgewater, New Jersey 07020 (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.

                                             CHELSEY DIRECT, LLC

                                             By:  /s/ William B. Wachtel
                                                  ______________________________

                                             Title: ____________________________

                                             Date: November 30, 2003



                                 ACKNOWLEDGMENT

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

     On the 26 day of November, 2003, before me personally came William
B. Wachtel, to me known, who by me duly sworn, did depose and say that deponent
resides at ___________________, that deponent is a duly authorized
representative of Chelsey Direct, LLC, the entity described herein as Releasor
and which executed the foregoing Release, and that deponent signed deponent's
name thereto by authority of Chelsey Direct, LLC.

                                                       /s/ Elizabeth Ferreira
                                                   _____________________________
                                                            Notary Public