Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, January 23, 1994                   TAG: 9401240261
SECTION: ECONOMY                    PAGE: EC-7   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE:                                 LENGTH: Medium

COULD 600 MORE JOBS BE ON THE WAY?

Hanover Direct Inc. is a combination of the former operator of New York's famous Automats and an outfit that sells general merchandise through catalogs. The merger has produced one of the nation's largest mail-order enterprises and one that's on a fast growth track, according to its president.

Jack E. Rosenfeld, president and chief executive officer of Hanover Direct, said the company intends to grow. He made the comment earlier this month, when he was in the Roanoke Valley to announce a major expansion.

The company announced two major ventures, just a week apart:

Hanover Direct, based in Weehawken, N.J., said it will build a 500,000-square-foot building on 54 acres in Roanoke County. The facility will be the fulfillment center for its Domestications catalog, a linens and household textiles operations which is Hanover Direct's largest unit with annual sales of more than $300 million.

Hanover also said it will expand the Tweeds Inc. building in Botetourt County, both by adding work from some of its other catalogs in the current building and by later expanding that building.

The net result for the Roanoke Valley could be more than 600 new jobs in the next three years.

The company's other January announcement was of a joint project with Sears Shop At Home Services Inc. Hanover will produce specialty catalogs to be sent to more than 24 million Sears customers.

The first mailing for Sears was scheduled for this month. The specialty catalogs will include: Show Place, featuring bed and bathroom accessories; Great Kitchens, offering kitchen accessories and tabletop appliances; and Beautiful Style, with after-5 women's apparel in sizes 14 and larger.

If certain sales and earnings targets are met, Sears Shop At Home Services may purchase up to 7 million shares of Hanover common stock in 1999.

The Sears catalog effort could be the portion of business that Hanover plans to house at Tweeds' 175,000-square-foot catalog center in the Roanoke-Botetourt Industrial Park. Company executives haven't confirmed those plans, though.

Hanover's direct-marketing catalog businesses had 1992 revenues of $586.6 million. The company has 16 million names on its mailing lists.

The genesis of Hanover began around 1990 when Horn & Hardart started selling off its flagging core restaurant business to concentrate on its direct-mail marketing operations, The Hanover Cos. - which had been Hanover House Industries Inc. when H&H bought it in 1972. Horn & Hardart, founded in 1911, used to own franchises of such popular restaurants as Bojangles, Burger King and Arby's.

As a result of a series of moves in 1992, including investment by North American Resources Ltd. of a total $78.5 million in exchange for a controlling stake in the company, Horn & Hardart managed to reduce its debt to $34 million, from $158 million in July 1991. North American Resources now owns 67.3 percent of the company.

North American Resources is a joint venture between the Quasha family and Cie. Financiere Richemont AG of Zug, Switzerland. It holds six of 11 board seats and Alan Quasha, the New York-based spokesman for the family, is the company's chairman.

Quasha is a lawyer and president of Quadrant Management Inc., a subsidiary of North American Resources.

In September 1992, Horn & Hardart Co. completed the financial restructuring. Its shareholders approved several transactions, including a debt-exchange offer and a common-stock rights offering that raised $50 million. The company used the money to cut its long-term debt.

Horn & Hardart, which pioneered the concept of fast food with its Automat restaurants in New York, changed its name to Hanover Direct Inc. in September 1993.

Hanover Direct bought Tweeds Inc. for $3.6 million last year.

\ HANOVER DIRECT INC.\ A NEW NAME\ \ The company: Hanover Direct Inc. is the sixth-largest catalog retailer with 14 catalogs selling such varied items as home furnishings and apparel.

\ Headquarters: Weehawken, N.J.

\ Roanoke Valley operations: In 1993, the company bought Tweeds Inc., and acquired the company's 175,000-square-foot catalog telemarketing and fulfillment center in the Roanoke-Botetourt Industrial Park. This month, Hanover announced it would build a 500,000-square-foot distribution center on old Hollins Road in Roanoke County for its Domestications home furnishings catalog.