<ARTICLE> 5 <LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE HANOVER DIRECT, INC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 28, 1996 AND IS QUALIFIED IN ITS ENTIRETY, EXCEPT FOR GROSS ACCOUNTS RECEIVABLE AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-28-1996 <PERIOD-END> DEC-28-1996 <CASH> 5,173 <SECURITIES> 0 <RECEIVABLES> 29,399 <ALLOWANCES> (5,030) <INVENTORY> 67,610 <CURRENT-ASSETS> 132,031 <PP&E> 71,132 <DEPRECIATION> (22,523) <TOTAL-ASSETS> 220,827 <CURRENT-LIABILITIES> 143,538 <BONDS> 43,255 <PREFERRED-MANDATORY> 5,748 <PREFERRED> 0 <COMMON> 96,893 <OTHER-SE> (4,212) <TOTAL-LIABILITY-AND-EQUITY> 220,827 <SALES> 700,314 <TOTAL-REVENUES> 700,314 <CGS> 479,155 <TOTAL-COSTS> 794,811 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 8,858 <INCOME-PRETAX> (102,895) <INCOME-TAX> 1,000 <INCOME-CONTINUING> (103,895) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (105,029) <EPS-PRIMARY> (0.93) <EPS-DILUTED> (0.93)