Hanover Direct CEO Resigns, Follows Losses, Declining RevenueRakesh Kaul has resigned as president/CEO of Hanover Direct Inc., Weehawken, NJ, and has been replaced by former Barney's New York executive Thomas Shull.
Kaul announced his resignation on Dec. 5 and Shull was named head of the catalog company later that day.
The company also appointed Elroy Michotte as chairman of Hanover's board of directors. He replaces Alan Quasha who remains on the board.
Hanover spokesman Addison Ames said on Dec. 6 that details regarding the changes were still being "sorted out." He did not provide any additional comment.
The cataloger publishes 13 titles, including Domestications, The Company Store and Gump's By Mail.
Kaul's resignation comes after a string of money-losing years. Last year the company lost $16.3 million on $549.9 million in revenue following a $25.6 million loss on $546.1 million in revenue in 1998.
In April the company launched Company Kids, a spinoff of The Company Store. The endeavor came on the heels of Hanover selling its Austad's golf catalog last year to Mammoth Sports Group, Jessup, MD.
In October, Hanover announced the suspension of Turiya, an upscale bedding and linen catalog. The Turiya brand was integrated into Gump's By Mail and The Company Store.
Three years ago the company announced a plan to cut costs by $50 million annually. This included the closing of excess warehouse capacity in Hanover, PA, and the elimination of excess telemarketing capacity in Roanoke, VA. At the end of 1996, the company announced the elimination of 550 jobs and mapped a plan to reduce marketing expenditures.