EXHIBIT 10.73

                        STOCK OPTION AGREEMENT AMENDMENT

                               Amendment Number 1

         This Amendment Number 1 to the Stock Option Agreement entered into
between Hanover Direct, Inc., a Delaware corporation (the "Company"), and Thomas
C. Shull ("Shull"), which evidenced the grant to Shull by the Company of an
option to purchase 2,700,000 shares of the Company's common stock as of December
5, 2000 (the "Option Agreement"), shall be effective as of September 1, 2002.

                              W I T N E S S E T H :

         WHEREAS, the Company and Shull entered into the Stock Option Agreement;
and

         WHEREAS, the Company and Shull now desire to amend the Option Agreement
in certain respects.

         NOW, THEREFORE, it is agreed by and between the parties hereto to the
following amendments to the Option Agreement:

         1.       The proviso at the end of Paragraph 3 of the Option Agreement
is hereby amended to read in its entirety as follows::

                      "provided, further, that, notwithstanding anything to the
                      contrary contained herein, this Option shall expire as
                      to 100% of the number of Shares subject hereto on
                      June 30, 2005."

         2.       All references in the Option Agreement and in this Amendment
Number 1 to the "Services Agreement" shall refer to the Employment Agreement
between the Company and Shull, entered into as of September 1, 2002.



         3.       Except as hereunder provided, the Option Agreement shall
remain in full force and effect without further modification.

         IN WITNESS WHEREOF, the Company and Shull have executed this Amendment
Number 1 as of September 1, 2002.

                                    HANOVER DIRECT, INC.

                                    By: /s/ Michael D. Contino
                                        -----------------------
                                        Name:  Michael D. Contino
                                        Title: EVP - C.O.O.

                                    /s/ Thomas C. Shull
                                    -------------------
                                    THOMAS C. SHULL