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                                                                       EXHIBIT 2
                               GIANT GROUP, LTD.
                         ADOPTS STOCKHOLDER RIGHTS PLAN

January 4, 1996
GIANT GROUP, LTD.
(NYSE - GPO)
Beverly Hills, California


         GIANT GROUP, LTD. announced today that its Board of Directors has
adopted a Stockholders Rights Plan.

         The Plan is designed to ensure that all stockholders of the Company
receive fair value for their Common Stock in the event of a change in ownership
of the Company and to guard against the use of coercive tactics to gain control
of the Company or its assets without offering fair value.

         Terry Christensen, a director of the Company, said "We believe that
this Plan protects the interests of the Company's stockholders in the event
that the Company is confronted with coercive or unfair tactics."

         Mr. Christensen stressed that "the Plan is not intended, nor will it
operate, to prevent an acquisition of the Company or its assets on terms which
are fair to all stockholders.  The Plan is designed to deal with the very
serious problem of unilateral actions by persons that are calculated to deprive
the Board and the stockholders of their ability to determine the destiny of the
Company or which enrich a small group of stockholders at the expense of the
other stockholders.  Offers that reflect the Company's fair value would be not
be affected by the Plan."

         Under the terms of the Plan, preferred stock purchase rights will be
distributed as a dividend at the rate of one right for each share of Common
Stock held as of the close of business on January 16, 1996.  Stockholders will
not actually receive certificates for the rights at this time, but the rights
will be evidenced by each share of Common Stock.  The number of rights
outstanding is subject to adjustment under certain circumstances and all rights
expire on January 4, 2006.

         Each right will entitle the holder to buy 1/1,000th of a share of
Series A Junior Participating Preferred Stock of the Company at an exercise
price of $30 for each 1/1,000th of a share.  Each Preferred Share is designed
to be equivalent in voting and dividend rights to 1,000 shares of Common Stock.
The rights will be exercisable and will trade separately from the Common Stock
only if a person or group of persons becomes the beneficial owner of 15% or
more of the Common Stock or if a person commences a tender or exchange offer
the consummation of which would result in such person becoming the beneficial
owner of 15% or more of the Common Stock.  Because Burt Sugarman, Chairman of
the Board and Chief Executive Officer of the Company,
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presently beneficially owns in excess of 15% of the Common Stock, the rights
will be exercisable and trade separately upon the acquisition by Mr. Sugarman
of additional shares of Common Stock, other than acquisitions through stock
dividends, stock option plans, company compensation plans and other similar
arrangements.  Stockholders will receive certificates for the rights only when
one of the foregoing events occur.

         If any person does become the beneficial owner of 15% or more of the
Company's Common Stock or commences a tender or exchange offer which would
result in such person owning 15% or more of the Company's Common Stock, the
other stockholders will be able to exercise the rights and buy Common Stock of
the Company having twice the value of the exercise price of the rights.  The
Company may, at its option, substitute 1/1,000 of a share of Preferred Stock
for each share of Common Stock to be issued upon exercise of the rights.
Additionally, if the Company is involved in certain mergers where its shares
are exchanged or certain major sales of its assets occur, stockholders will be
able to purchase for the exercise price twice the value of the exercise price
of the rights and thereafter the rights will no longer be exercisable into
shares of Preferred Stock.

         The Company will be entitled to redeem the rights at a price of $.01
per right at any time until the public announcement that a person has become
the beneficial owner of 15% or more of the Common Stock of the Company.

For further information contact:

Terry Christensen
(310) 553-3000