Hanover Puts Noncore Titles on the Block

Nov. 10 was a dizzying day of news at Edgewater, NJ-based Hanover Direct.

For starters, the multititle mailer announced a recapitalization agreement with Chelsey Direct that is expected to close Dec. 17. Chelsey Direct will have a majority equity and voting interest in the Hanover, with four seats on the board and the ability to add a fifth seat in the near future.

Mindful of its debt, Hanover also said it would “actively market all noncore assets”–plus-size women’s apparel catalog Silhouettes, upscale home furnishings cataloger/retailer Gump’s, and men’s apparel book International Male. Hanover’s core bedding and home accessories titles are Domestications, The Company Store, Company Kids, and Scandia Down.

Hanover’s third-quarter net loss, also announced on Nov. 10, was $16.6 million, nearly double the $8.4 million net loss it reported for the third quarter of last year. Third-quarter net revenue declined 9%, to $96.6 million from $106.0 million last year.

The company had earlier announced the appointment of Charles Blue as chief financial officer. Blue replaces Ed Lambert, who will continue to serve as executive vice president until Jan. 2.