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                                    EXHIBIT 1

                    CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS

As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K, into Hanover Direct, Inc.'s (formerly The
Horn & Hardart Company) previously filed Registration Statement File No.
2-94286.



New York, New York                                           ARTHUR ANDERSEN LLP
June 29, 1998