<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)