<ARTICLE> 5
<LEGEND>
THE LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE HANOVER
DIRECT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AND
STATEMENTS OF INCOME FOR THE TWENTY-SIX WEEKS ENDED JUNE 27, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-27-1998
<PERIOD-END>                               JUN-27-1998
<CASH>                                           3,246
<SECURITIES>                                         0
<RECEIVABLES>                                   19,364
<ALLOWANCES>                                   (2,522)
<INVENTORY>                                     74,697
<CURRENT-ASSETS>                               147,763
<PP&E>                                          85,610
<DEPRECIATION>                                (33,315)
<TOTAL-ASSETS>                                 231,793
<CURRENT-LIABILITIES>                           87,992
<BONDS>                                         55,098
<PREFERRED-MANDATORY>                            6,033
<PREFERRED>                                          0
<COMMON>                                       136,676
<OTHER-SE>                                    (74,996)
<TOTAL-LIABILITY-AND-EQUITY>                   231,793
<SALES>                                        259,097
<TOTAL-REVENUES>                               259,097
<CGS>                                          162,360
<TOTAL-COSTS>                                  264,428
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                 1,734
<INTEREST-EXPENSE>                               3,677
<INCOME-PRETAX>                                (9,008)
<INCOME-TAX>                                       500
<INCOME-CONTINUING>                            (9,508)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (9,508)
<EPS-PRIMARY>                                    (.05)
<EPS-DILUTED>                                    (.05)