Hanover Direct has completed the sale of its Kindig Lane fulfillment warehouse in Hanover, PA, to Utz Quality Foods Inc. for $4.7 million, Hanover Direct said Friday.
The sale is part of a business realignment plan that the company announced in January, and the sale is expected to produce a net gain of $1 million, which will be reported in the company's second-quarter results. Hanover, Weehawken, NJ, will use the net proceeds of $4.4 million to reduce outstanding debt under the company's credit facility with Congress Financial Corp.
The company will continue its telemarketing, information systems and accounting at another site in Hanover. It also will continue to use a portion of the facility as a tenant under a lease agreement with Utz until summer 2002.
Hanover eventually will move activities from the former site to its fulfillment center in Roanoke, VA.
The company said Newmark Retail Financial Advisors, which is searching for a buyer for the cataloger's Gumps and International Male assets, assisted with the transition.
