8-K

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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
           -----------------------------------------------------------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): June 29, 2001
       ---------------------------------------------------------------

                              HANOVER DIRECT, INC.
          -------------------------------------------------------------
               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

                                     1-12082
                       ----------------------------------
                            (COMMISSION FILE NUMBER)

                DELAWARE                                  13-0853260
   -----------------------------------            -----------------------------
      (STATE OR OTHER JURISDICTION                     (I.R.S. EMPLOYER
            OF INCORPORATION)                        IDENTIFICATION NUMBER)

          1500 HARBOR BOULEVARD
          WEEHAWKEN, NEW JERSEY                             07087
   -----------------------------------                  --------------
          (ADDRESS OF PRINCIPAL                           (ZIP CODE)
           EXECUTIVE OFFICES)



       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (201) 863-7300
                                                         -------------------


 -------------------------------------------------------------------------------
          (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)



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ITEM 5.  OTHER EVENTS

         On July 2, 2001, Hanover Direct, Inc. (the "Company") issued a press
release announcing that on June 29, 2001 it had completed the sale of certain
assets and liabilities of the Improvements business to HSN, a division of USA
Networks, Inc.'s Interactive Group, for approximately $33.4 million.

EXHIBITS

Exhibit 20.1 Press Release dated July 2, 2001.




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                                   SIGNATURES

              Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.

                                             HANOVER DIRECT, INC.
                                             -----------------------------------
                                                    (Registrant)

July 2, 2001                                 By: /s/ Brian C. Harriss
                                             -----------------------------------
                                             Name:  Brian C. Harriss
                                             Title: Executive Vice President and
                                                    Chief Financial Officer

EX-20.1

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EXHIBIT 20.1

                                                               [GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE

CONTACT:          Hanover Direct, Inc                        The MWW Group
                  Brian C. Harriss                           Rich Tauberman
                  E.V.P & Chief Financial Officer            Tel: (201) 507-9500
                  Tel: (201) 272-3224


    HANOVER DIRECT COMPLETES SALE OF IMPROVEMENTS BUSINESS FOR $33.4 MILLION

WEEHAWKEN, NJ, July 2,2001- Hanover Direct, Inc. (AMEX: HNV) today announced it
had completed the sale of certain assets and liabilities of the Improvements
business to HSN, a division of USA Networks, Inc.'s Interactive Group, for $33.4
million. Hanover's Keystone subsidiary will provide fulfillment services for the
Improvements business under a services agreement with the buyer for up to three
years.

 "This transaction marks an important milestone in Hanover's strategic
realignment and benefits our shareholders and further strengthens our balance
sheet and cash resources," stated Tom Shull, the Company's President and Chief
Executive Officer. "We wish Ken Ellingsen and his team all the best, knowing
that HSN brings to the business a powerful additional sales channel that will
further benefit the Improvements brand."


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. Hanover Brands, Inc. is comprised of the
Company's catalog and e-commerce web site portfolio of home fashions, apparel
and gift brands, including DOMESTICATIONS, THE COMPANY STORE, COMPANY KIDS,
ENCORE, SILHOUETTES, INTERNATIONAL MALE, UNDERGEAR, 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. erizon, Inc. is comprised
of Keystone Internet Services, Inc. (www.keystoneinternet.com), the Company's
third party fulfillment operation, and also provides the logistical, IT and
fulfillment needs of the Hanover Brands, Inc. Information on Hanover Direct,
including each of its subsidiaries, can be accessed on the Internet at
www.hanoverdirect.com.


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