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ARTICLE: BUSINESS WEEK - NEXT WEEKS ISSUE:
The Net May Make Hanover (HNV) Bounce
Another company that's Internet-bound is Hanover Direct (HNV), which was in dire financial straits two years ago. Formerly called Horn & Hardart, the company has gone through a recapitalization and is heading for the Internet. It offers a range of brand-name merchandise, including men's and women's apparel and gifts, which it sells through direct mail, catalogs, and the Internet. Says CEO Rakesh Kaul: ''We're moving rapidly to shift our 25 million customers away from catalogs to Internet shopping.''
Will Hanover Direct spin off its Internet operations and take it public? ''We are looking at all options that are in the best interests of our customers and shareholders,'' says Kaul. ''We are committed to building relationships to expand our E-commerce.'' Hanover and Excite recently formed an E-commerce alliance that adds Hanover's catalogs to Excite's online site. Kaul says that Hanover's largest shareholder, the Swiss Compagnie Financiere Richemont, which has a 51% stake, strongly supports the Internet move. Another big holder is Regan Partners, which owns 17%.
One New York investment manager is betting that Kaul will opt for taking the Net unit public. With the stock now at 3 a share, ''Hanover isn't exactly a runaway Internet stock just yet,'' notes this pro. ''That's one very attractive side to the stock,'' he adds. He figures revenues in 1998 will match last year's $489 million, with the company either posting a loss or breaking even.
BUSINESS WEEK ARTICLE PASTED BY: JAG |
