Hanover won't sell until price is right
Staff Staff -- Home Textiles Today, August 12, 2004
EAST RUTHERFORD, N.J. — Hanover Direct is focused on improving all its businesses, but singled out a long-term commitment to home-related properties, while reminding any would-be suitors that offers on non-home catalogs would be welcomed, the board of directors told shareholders today at its annual meeting.
Though it was once emphatic on selling some properties, Wayne Garten, Hanover Direct president and CEO, said a lack of reasonable offers forced the company to rethink its strategy, retrench, and go back to focusing on running those businesses until a reasonable offer comes along.
"We were attempting to sell assets quickly, and buyers are not fools," he said. "So we were receiving unacceptable offers. Now we are under no pressure to sell until we get good offers."
Garten, who returned to Hanover in the beginning of May, said his initial evaluation of the company left him with a few stark impressions.
Garten also noted that as part of its cost-reduction plan, the company is proceeding with a DC consolidation that will see its LaCross facility merged into the more high-tech Roanoke, Va., site.