Hanover Faces Informal SEC Inquiry

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Hanover Direct Inc. has been notified by the Securities and Exchange Commission that it is conducting an informal inquiry regarding the company's financial results and financial reporting since 1998, the Edgewater, NJ, company said late Friday.


Hanover markets home, apparel and gift items via catalogs and the Internet under brand names such as Domestications, The Company Store, Company Kids, Silhouettes, International Male, Scandia Down and Gump's by Mail.


Hanover also said that its stock will be delisted by the American Stock Exchange effective Feb. 16.


As was reported last month, Amex's decision to file an application with the SEC to delist Hanover is based on the company's failure to file its quarterly report on Form 10-Q with the commission for the fiscal quarter ended Sept. 25, 2004. Filing these reports is a requirement of being listed on the exchange.


The exchange had previously halted trading in the company's common stock Nov. 16 and suspended trading Feb. 2. Trading information about Hanover's common stock can be obtained from the Pink Sheets -- pinksheets.com -- under the trading symbol HNVD.


In November, Hanover reported that it had overstated revenue in its financial statements going back to 1999 due to an accounting error and would file restated earnings.


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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