-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 C/e1QiBMMspRpy/57DSNuQ==

<SEC-DOCUMENT>0001026121-06-000021.txt : 20060420
<SEC-HEADER>0001026121-06-000021.hdr.sgml : 20060420
<ACCEPTANCE-DATETIME>20060420165234
ACCESSION NUMBER:		0001026121-06-000021
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060420
DATE AS OF CHANGE:		20060420

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HANOVER DIRECT INC
		CENTRAL INDEX KEY:			0000320333
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
		IRS NUMBER:				138053260
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1227

	BUSINESS ADDRESS:	
		STREET 1:		1500 HARBOR BLVD
		CITY:			WEEHAWKEN
		STATE:			NJ
		ZIP:			07087
		BUSINESS PHONE:		2018653800

	MAIL ADDRESS:	
		STREET 1:		1500 HARBOR BLVD
		CITY:			WEEHAWKEN
		STATE:			NJ
		ZIP:			07087

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HORN & HARDART CO /NV/
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WACHTEL WILLIAM B
		CENTRAL INDEX KEY:			0001236945

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08056
		FILM NUMBER:		06770481

	BUSINESS ADDRESS:	
		STREET 1:		110 EAST 59TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		2129099500

	MAIL ADDRESS:	
		STREET 1:		110 EAST 59TH ST
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>form5_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2005-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>1</form4TransactionsReported>

    <issuer>
        <issuerCik>0000320333</issuerCik>
        <issuerName>HANOVER DIRECT INC</issuerName>
        <issuerTradingSymbol>HNVD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001236945</rptOwnerCik>
            <rptOwnerName>WACHTEL WILLIAM B</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>110 EAST 59TH ST</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.43</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-08-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>F</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1167</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-08-03</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-08-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1167</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>6167</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">An option to purchase 3,500 shares of the Common Stock was granted pursuant to the 2002 Stock Option Plan for Directors on
August 3, 2004, but first became exercisable as 1,167 shares on August 3, 2005. The option will become exercisable as to an
additional 1,167 shares on August 3, 2006 and as to the remaining 1,166 shares on August 3, 2007.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ William B. Wachtel</signatureName>
        <signatureDate>2006-04-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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