Hanover Direct keep hold on Houlihan Lokey Howard & Zukin

30 Mar '06

3 min read

Branded merchandiser Hanover Direct Inc announced that on March 28, 2006 the Special Committee of the Board of Directors, which had been appointed to review and evaluate the proposal from Chelsey Direct, LLC to take the Company private, had retained the investment banking firm of Houlihan Lokey Howard and Zukin as its independent financial advisor to advise the Special Committee with respect to the fairness of the Chelsey proposal.

The Special Committee directed Company management to provide Houlihan Lokey with full cooperation in all aspects of its due diligence, a process which commenced promptly after Houlihan Lokey was retained.

The Company also announced that the Special Committee had appointed Robert H. Masson as its Chairman; the other committee members are A. David Brown and Donald Hecht.

In addition, in accordance with the compensation determined by the Special Committee, the Company has paid each of the committee members for services to be rendered during the two-month period ending April 30, 2006.

The Company had previously announced that it had been served with a suit in Delaware Chancery Court arising out of Chelsey's going private proposal. The complaint, filed on March 1, 2006, named the Company, Chelsey and the Company's directors as defendants.

The Company has also been served with a second complaint in Delaware Chancery Court, filed on March 7, 2006, and a third complaint in Superior Court of New Jersey, Chancery Division, filed on March 3, 2006, that were substantially similar to the first complaint.

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