Program will help $400 million leading catalog and Web retailer increase sales
and appeal to broader circle of customers via dual card offering;
Agreement marks expansion of Alliance Data's integrated card program offering
DALLAS, April 5 /PRNewswire-FirstCall/ -- Alliance Data Systems Corp.
(NYSE: ADS), a leading provider of transaction services, credit services and
marketing services, today announced that it has signed a seven-year agreement
with Hanover Direct, Inc., a leading catalog and Web retailer of home
furnishings and accessories, and men's and women's apparel. Under terms of
the agreement, Alliance Data will provide a fully integrated private label
credit card and co-brand bankcard solution for Hanover Direct's catalog and
corollary Web brands, including The Company Store, Domestications,
Silhouettes, International Male and Undergear. With sales in excess of
$400 million, Hanover mails more than 165 million catalogs annually, offering
merchandise ranging from upscale home furnishings, bed linens, and
decorations, to men's and women's apparel including contemporary, casual and
trend-conscious fashions.
The services that Alliance Data will provide Hanover Direct include
account acquisition and activation, receivables funding, card authorization,
card issuance, statement generation, loyalty marketing services, remittance
processing, and customer service functions. Alliance Data will initially
launch a private label credit card program for the Hanover brands and will
later introduce an integrated co-brand credit card program that will be an
adjunct to Alliance Data's traditional private label credit card offering.
The co-brand credit card will be targeted to select consumers that meet
Alliance Data's traditional credit quality standards. The card will offer a
loyalty rewards program that recognizes customers for their purchases,
including purchases made on the co-brand credit card outside the Hanover
brands.
Mike Contino, executive vice president and chief operating officer for
Hanover Direct, Inc., said, "Alliance Data Systems demonstrated considerable
insight in proposing this integrated credit card program. It offers a single
holistic approach geared toward expanding customer participation in our
loyalty marketing programs, which was very appealing to us. Additionally,
this solution offers complete and complementary card programs that we believe
will help attract a broader circle of consumers while also recognizing and
rewarding our best customers. Alliance Data has the retail experience, multi-
channel expertise and the integrated solution that we were seeking to help
grow our business and give us a competitive advantage."
"We are very pleased that Hanover Direct selected us to provide their
credit card program needs and are looking forward to building a strong
business partnership," said Ivan Szeftel, president of Retail Services,
Alliance Data Systems. "In the short time we've worked with them, we were
quickly impressed by Hanover Direct's commitment to growing their business
through a customer-focused approach geared toward strengthening the
relationship between their customers and their brands. We also view our
relationship with Hanover Direct as one that fits squarely within our client
profile in terms of credit quality, product mix and distribution channels.
Finally, this agreement speaks to Alliance Data's strategic vision for
building upon our core private label credit card product to offer an
integrated suite of card services that drives our clients' sales, reinforces
the retailer's brand, and offers an effective means of increasing customer
loyalty."
About Alliance Data Systems
Based in Dallas, Alliance Data Systems is a leading provider of
transaction services, credit services and marketing services. The company
assists retail, petroleum, utility and financial services clients in managing
the critical interactions between them and their customers. Alliance Data
manages approximately 95 million consumer relationships for some of North
America's most recognizable companies and operates and markets the largest
coalition loyalty program in Canada. Alliance Data Systems employs
approximately 7,500 associates at more than 30 locations in the United States
and Canada. For more information about the company, visit its web site,
http://www.alliancedatasystems.com.
About Hanover Direct, Inc.
Hanover Direct, Inc. (PINK SHEETS: HNVD) and its business units provide
quality, branded merchandise through a portfolio of catalogs and e-commerce
platforms to consumers, as well as a comprehensive range of Internet,
e-commerce, and fulfillment services to businesses. The Company's catalog and
Internet portfolio of home fashions, apparel and gift brands include
Domestications, The Company Store, Company Kids, Silhouettes, International
Male, Undergear and Scandia Down. Each brand can be accessed on the Internet
individually by name. Keystone Internet Services, LLC
(http://www.keystoneinternet.com), the Company's third party fulfillment operation,
also provides the logistical, IT and fulfillment needs of the Company's
catalogs and web sites. Information on Hanover Direct, including each of its
subsidiaries, can be accessed on the Internet at http://www.hanoverdirect.com.
Alliance Data Systems' Safe Harbor Statement/Forward Looking Statements
This news release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such statements may
use words such as "anticipate," "believe," "estimate," "expect," "intend,"
"predict," "project" and similar expressions as they relate to us or our
management. When we make forward-looking statements, we are basing them on our
management's beliefs and assumptions, using information currently available to
us. Although we believe that the expectations reflected in the forward-looking
statements are reasonable, these forward-looking statements are subject to
risks, uncertainties and assumptions, including those discussed in our filings
with the Securities and Exchange Commission.
If one or more of these or other risks or uncertainties materialize, or if
our underlying assumptions prove to be incorrect, actual results may vary
materially from what we projected. Any forward-looking statements contained in
this news release reflect our current views with respect to future events and
are subject to these and other risks, uncertainties and assumptions relating
to our operations, results of operations, growth strategy and liquidity. We
have no intention, and disclaim any obligation, to update or revise any
forward-looking statements, whether as a result of new information, future
results or otherwise.
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SOURCE Alliance Data Systems Corp.
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Related links:
http://www.alliancedatasystems.com
http://www.hanoverdirect.com
CONTACT:
Ed Heffernan, CFO, Analysts/Investors,
972-348-5191, or eheff@alldata.net, or Shelley Whiddon, Media,
972-348-4310, or swhiddon@alldata.net, both of Alliance Data
Systems; or Wayne P. Garten, President/CEO of Hanover Direct,
Inc., 201-272-3405, or wgarten@hanoverdirect.com
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