<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 2 )*
-----
Hanover Direct Inc.
-------------------
(Name of Issuer)
Common Stock
------------
(Title of Class of Securities)
41078310
--------
(CUSIP Number)
December 31, 1998
-----------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant
to which this Schedule is filed:
[X] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 4 Pages
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CUSIP No. 41078310 13G Page 2 of 4 Pages
-------- --- ---
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Warburg Pincus Asset Management, Inc. 13-2673503
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
Not applicable
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
---------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 20,700,470
OWNED BY ---------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 20,700,470
WITH ---------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,700,470
- --------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
Not applicable
- --------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
9.82%
- --------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IA
- --------------------------------------------------------------------------------
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Item 1(a): Name of Issuer:
- --------- --------------
Hanover Direct Inc.
Item 1(b): Address of Issuer's Principal Executive Offices:
- --------- -----------------------------------------------
1500 Harbor Blvd.
Weehawken, NJ 07087
Item 2(a) Name of Person Filing:
- --------- ---------------------
Warburg Pincus Asset Management, Inc.
Item 2(b): Address of Principal Business Office:
- --------- ------------------------------------
466 Lexington Avenue, New York, New York 10017
Item 2(c): Citizenship:
- --------- -----------
Delaware
Item 2(d): Title of Class of Securities:
- --------- ----------------------------
Common Stock
Item 2(e): CUSIP Number:
- --------- ------------
41078310
Item 3: If the reporting person is an investment adviser in
- ------ accordance with ss. 240.13d-1(b)(1)(ii)(E), check this
box. [X]
Item 4: Ownership:
- ------ ---------
(a) Amount beneficially owned: 20,700,470.
(b) Percent of class: 9.82%.
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote 0.
(ii) Shared power to vote or to direct the vote
20,700,470.
(iii) Sole power to dispose or to direct the
disposition of 20,700,470.
(iv) Shared power to dispose or to direct the
disposition of 0.
Item 5: Ownership of Five Percent or Less of a Class:
- ------ --------------------------------------------
Not applicable
Page 3 of 4 Pages
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Item 6: Ownership of More than Five Percent on Behalf
- ------ of Another Person:
---------------------------------------------
Warburg Pincus Asset Management, Inc. ("WPAM") is an
Investment Adviser registered with the United States
Securities and Exchange Commission. WPAM serves as investment
adviser to many accounts including various registered
investment companies. The securities which are the subject of
this report are owned by our accounts. In this report one or
more corporate accounts owned more than 5%.
Item 7: Identification and Classification of the Subsidiary
- ------ Which Acquired the Security Being Reported on By the
Parent Holding Company:
----------------------------------------------------
Not Applicable.
Item 8: Identification and Classification of
- ------ Members of the Group:
------------------------------------
Not Applicable.
Item 9: Notice of Dissolution of Group:
- ------ ------------------------------
Not Applicable.
Item 10: Certification:
- ------- -------------
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were acquired and
are held in the ordinary course of business and were not
acquired and are not held for the purpose of or with the
effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in
connection with or as a participant in any transaction having
that purpose or effect.
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: January 26, 1999
By:/s/ Linda S. Iovan
---------------------------
Name: Linda S. Iovan
Title: Vice President
Page 4 of 4 Pages
