Exhibit 20.1
                                                       [HANOVER DIRECT GRAPHIC]
FOR IMMEDIATE RELEASE

CONTACT:          Hanover Direct, Inc.                      The MWW Group
                  Charles E. Blue                           Jamie Schwartz
                  S.V.P & Chief Financial Officer           Rich Tauberman
                  Tel: (201) 272-3412                       Tel: (201) 507-9500

             HANOVER DIRECT, INC. ANNOUNCES RESIGNATION OF TOM SHULL

EDGEWATER, NJ, May 6, 2004 -Hanover Direct, Inc. (AMEX: HNV) today announced the
resignation of Thomas C. Shull as Chairman of the Board, President and Chief
Executive Officer of the Company and the election of William B. Wachtel as
Chairman of the Board and Wayne P. Garten as President and Chief Executive
Officer of the Company effective immediately. Mr. Wachtel has served as a member
of the Company's Board of Directors since November 18, 2003 while Mr. Garten has
served as director of the Company since September 29, 2003, each as a designee
of the holder of the Company's Preferred Stock, Chelsey Direct, LLC.

Mr. Wachtel has been a managing partner of Wachtel & Masyr, LLP, or its
predecessor law firm (Gold & Wachtel, LLP), since its founding in August 1984.
He is the co-founder of the Drum Major Institute, a not-for-profit organization
carrying forth the legacy of Dr. Martin Luther King, Jr. Mr. Wachtel is the
Manager of Chelsey Direct, LLC.

Since January 2004, Mr. Garten has served as the President of Caswell-Massey
Ltd., Inc., a retailer and direct marketer of fragrance and other personal care
products. Prior thereto, he was a financial consultant specializing in the
direct marketing industry. Mr. Garten served as Chief Executive Officer and
President of Popular Club, Inc, a direct selling, catalog marketer of apparel
and general merchandise products, from 2001 to 2003. From 1997 to 2000, he was
Executive Vice President and Chief Financial Officer of Micro Warehouse, Inc.,
an international catalog reseller of computer products. From 1983 to 1996, Mr.
Garten held various financial positions at Hanover Direct and its predecessor,
The Horn and Hardart Company, including Executive Vice President and Chief
Financial Officer from 1989 to 1996. Mr. Garten is a Certified Public
Accountant. Mr. Garten will be transitioning to his new position with the
Company over the next three weeks.

"I am looking forward to the opportunity of rejoining Hanover and working with
the Company's management team and employees in the next phase of its turnaround,
" stated Mr. Garten. "On behalf of the Board, I want to express our gratitude to
Tom for his significant contributions to the Company over the past several
years and we wish him well."

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 (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 www.hanoverdirect.com.