Hanover Direct Announces Plans to Consolidate Its Wisconsin Distribution Operations Into Its Virginia Facility
June 30 2004 - 5:27PM
PR Newswire (US)
Hanover Direct Announces Plans to Consolidate Its Wisconsin
Distribution Operations Into Its Virginia Facility EDGEWATER, N.J.,
June 30 /PRNewswire-FirstCall/ -- Hanover Direct, Inc. (AMEX:HNV)
today announced plans to consolidate its Company Store distribution
operations in La Crosse, Wisconsin into its Roanoke, Virginia
facility. The consolidation will occur over the next 12 months and
is prompted by the lack of sufficient warehouse space in its leased
Wisconsin facilities. The 630,000 square foot Roanoke facility
owned by the Company, however, has excess capacity that was
originally engineered in 1995 to support the Company's "home core"
product line. This decision does not impact the Company's call
center, manufacturing facility or outlet stores also located in
Wisconsin which combined employ approximately 640 people.
"Consolidating these facilities positions the Company for future
growth in our 'home core' businesses and will allow us to service
our customers more efficiently, while reducing our overall cost
structure once the consolidation is completed," stated Wayne
Garten, the Company's President and Chief Executive Officer. Mr.
Garten added that, "This decision is in no way a reflection on the
services provided by the Wisconsin team but more of the success of
The Company Store business and its need for more capacity than our
current Wisconsin facilities will support." Although implementation
of the consolidation plan will occur over the next 12 months,
discussions have begun today with representatives of Local 379 of
The Union of Needletrades, Industrial and Textile Employees
(UNITE!) to discuss the Company's plan and its impact on the union
employees. Forward-Looking Statements The matters discussed in this
news release may include forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of 1995) by
officers of the Company. Important factors that could cause actual
results to differ materially from those in such forward-looking
statements include, without limitation, the matters discussed in
the Management's Discussion and Analysis section of the Company's
most recent quarterly report on Form 10-Q and other filings with
the Securities and Exchange Commission under the caption
"Cautionary Statements." We undertake no obligation to publicly
update any forward-looking statement whether as a result of new
information, future events or otherwise. You are advised, however,
to consult any further disclosures we make on related subjects in
our Forms 10-Q, 8-K, 10-K or any other reports filed with the
Securities and Exchange Commission. About Hanover Direct, Inc.
Hanover Direct, Inc. (AMEX:HNV) and its business units provide
quality, branded merchandise through a portfolio of catalogs and
e-commerce platforms to consumers, as well as a comprehensive range
of Internet, e-commerce, and fulfillment services to businesses.
The Company's catalog and Internet portfolio of home fashions,
apparel and gift brands include Domestications, The Company Store,
Company Kids, Silhouettes, International Male, Scandia Down, and
Gump's By Mail. The Company owns Gump's, a retail store based in
San Francisco. Each brand can be accessed on the Internet
individually by name. Keystone Internet Services, LLC
(http://www.keystoneinternet.com/), the Company's third party
fulfillment operation, also provides the logistical, IT and
fulfillment needs of the Company's catalogs and web sites.
Information on Hanover Direct, including each of its subsidiaries,
can be accessed on the Internet at http://www.hanoverdirect.com/.
DATASOURCE: Hanover Direct, Inc. CONTACT: Charles E. Blue, S.V.P.
& Chief Financial Officer of Hanover Direct, Inc.,
+1-201-272-3389; or Rich Tauberman of MWW Group, +1-201-507-9500,
for Hanover Direct, Inc. Web site: http://www.hanoverdirect.com/
http://www.keystoneinternet.com/
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