Hanover CFO Resigns After Investigation

Garten Will Take On Duties Until Replacement Is Found

By Staff -- Home Textiles Today, 3/21/2005 12:00:00 AM

Edgewater, N.J. — —

Edgewater, N.J. — Hanover Direct, Inc. Chief Financial Officer Charles Blue has resigned, effective March 8. In his place, Wayne Garten, CEO, was appointed as acting chief financial officer until a replacement is appointed by the board.

The resignation came as independent outside counsel delivered its report on previously disclosed restatements (1999-2003 and certain subsequent quarters) of the company's financial statements and other accounting-related matters to Hanover's audit committee.

Hanover additionally stated that it will most likely not file its Form 10-K for the fiscal year ended Dec. 25, 2004 on time.

The company stated that the audit committee, again with the assistance of independent outside counsel, is in the process of formulating recommendations to Hanover and the board of directors concerning potential improvements in the company's internal controls and procedures for financial reporting, and the board of directors is committed to implemented improvements in a timely manner.