Company owners believe the move will halt the Âfinancial drainÂ caused by Hanover remaining public.Hanover Direct (Nasdaq OTC: HNVP), a Weehawken-based home fashion and apparel retailer, has received a proposal to go private from its largest private shareholder. Chelsea Direct, which owns nearly 70% of HanoverÂs common stock, has offered to purchase the remaining Hanover shares for $1.25 a share.
Chelsea owns all of the companyÂs preferred stock and maintains about 91% of the voting rights in the company. Company owners believe the move will halt the Âfinancial drainÂ caused by Hanover remaining public.
Once the cash transaction is complete, only Chelsea and its affiliates would own stock in the company. HanoverÂs board has not yet reviewed the proposal. Company shares sank $1.05 to $1.50 in noon trading.