1
Exhibit 20.1

                                                                          [LOGO]


FOR IMMEDIATE RELEASE

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

              Hanover Direct, Inc. Announces New Board Appointment

WEEHAWKEN, NJ, August 28, 2001 - Hanover Direct, Inc. (AMEX: HNV) today
announced the election of Basil P. Regan to the Company's Board of Directors,
effective immediately. Mr. Regan, who previously served as a Director of the
Company in 2000, fills a vacancy on the Board following the recent resignation
of Robert F. Wright.

"We are extremely pleased to announce the election and return of Basil Regan to
our Board," stated Tom Shull, President and CEO of Hanover Direct, Inc. "His
more than thirty years of experience as an investment and portfolio manager will
help guide Hanover Direct during its strategic business realignment. At the same
time, the Company and the Board express their deep appreciation and gratitude
for Bob Wright's near decade of service to the Company and shareholders."

Regan Partners, L.P. holds approximately 18% of Hanover Direct's common stock.

Basil Regan founded Regan Partners, L.P. in 1989 as a limited partnership that
invests primarily in undervalued companies implementing new growth strategies as
they realize their true wealth potential. Prior to founding Regan Partners, Mr.
Regan held positions at several investment and portfolio management companies.
He acted as Vice President and Director of Equity Research at Reliance Group
Holdings. He was a partner at PPN Partners, a Portfolio Manager at Steinhardt
Partners and a Senior Vice President and Director of Research at The Madison
Fund. Mr. Regan earned his B.A. from Colgate University and his M.B.A. from
Columbia University.

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 Hanover Brands, Inc. Information on Hanover Direct,
including each of its subsidiaries, can be accessed on the Internet at
www.hanoverdirect.com.