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                                                                  Exhibit 10.60

                               SERVICES AGREEMENT



         This Agreement (the "Agreement") is made as of the fifth day of
December, 2000 by and among: (i) Meridian Ventures, LLC, a Nevada limited
liability company controlled by Thomas C. Shull ("Meridian"), and Thomas C.
Shull ("Shull"), jointly and severally; and (ii) Hanover Direct, Inc.
("Company"), a Delaware corporation.

                  1. Provision of Services. Meridian shall provide for the
         benefit of the Company the services of Shull and the services of two
         (or more, at Meridian's discretion) additional consultants (the
         "Consultants") who shall provide services equivalent to those which
         would be provided by two full-time consultants. In connection
         therewith, Shull shall serve as the President and Chief Executive
         Officer (the "President/CEO") and as a member of the Board of Directors
         and its Executive Committee (the "Executive Committee").

                  2. Responsibilities. The President/CEO shall act and serve
         during the term of this Agreement as the President and Chief Executive
         Officer of the Company and shall report to the Company's Board of
         Directors. The employment responsibilities of the President/CEO will
         include those normally held by the president and chief executive
         officer of a corporation of a similar size and nature to the Company.
         The President/CEO shall devote his full-time efforts (which shall mean
         an average of 50 hours per work week, excluding reasonable vacation,
         personal, sick time or de minimus non-conflicting time for Meridian) in
         connection with his role as President, Chief Executive Office and
         member of the Executive Committee. All employees and officers shall
         report directly or indirectly to the President/CEO.

                  3. Term. Subject to paragraph 6, the term of this Agreement
         (the "Agreement Term") and the term for services of Shull shall
         commence as of December 5, 2000 and shall terminate on December 4,
         2001. The term for the services of the Consultants shall commence on
         December 5, 2000 and shall terminate on June 4, 2001, or upon any
         earlier termination of the Agreement Term. Such terms shall be
         renewable by mutual written agreement of the parties.

                  4. Compensation. (a) In consideration for providing the
         services of Shull as President/CEO and the services of the Consultants,
         during the Agreement Term, Meridian shall receive, in addition to the
         other consideration provided in this Agreement, compensation at the
         rate of $75,000 per month for services of Shull and, during the first
         six-months (6) of the Agreement Term, an additional $75,000 per month
         for the aggregate services of the Consultants payable in advance during
         the first week of each month (the "Base Fee").
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                  (b)      The compensation payable to Meridian under this
                           Agreement is in consideration for the services of
                           Shull and services of the Consultants. To the extent
                           permitted by applicable law, the Company shall not be
                           obligated to provide Shull or any Consultant (and
                           Meridian, Shull and Meridian on behalf of each other
                           Meridian employee serving hereunder as a Consultant
                           specifically decline) any employee benefits (for
                           example, health, 401K, pension, or other benefits
                           provided by the Company to its employees, etc.) under
                           this Agreement. Notwithstanding the foregoing, the
                           Company will allow Shull during the Agreement Term to
                           avail himself of any Company's employee discount
                           offered to other employees generally.

                  (c)      In addition to the payments required by paragraph
                           4(a), during the Agreement Term the Company shall pay
                           Meridian a flat fee of $30,000 per month for the
                           first six-months (6) of services and $15,000 per
                           month for the remaining six-months (6) of services,
                           which represents 20% of the compensation in paragraph
                           (4)(a) and is deemed to cover Meridian over-head
                           (including legal and accounting), health care costs,
                           payroll costs, and other expenses (the "Flat Fee").
                           If, notwithstanding paragraph 4(b), applicable law
                           requires the Company to provide Shull or any
                           Consultant with any employee benefits (other than the
                           Company's employee discount given Shull), the value
                           of such benefits shall be offset against the Flat
                           Fee.

                  (d)      The Company shall reimburse Meridian for the
                           reasonable out-of-pocket expenses of the
                           President/CEO and Consultants (such as travel, meals,
                           communications and lodging) which are incurred during
                           the Agreement Term on behalf of the Company on
                           appropriate business. Meridian shall submit invoices
                           and documentation for such reimbursable expenses on a
                           monthly basis, and the Company shall process payment
                           of the same upon receipt in accordance with its
                           customary procedures.

                  (e)      The Company shall provide a personal secretary to be
                           interviewed and selected by Shull to assist Shull in
                           the performance of duties as President/CEO during the
                           Agreement Term. The secretary shall be employed by
                           the Company at its cost.

                  (f)      The Company shall promptly reimburse Meridian and
                           Shull for their reasonable legal fees in the event
                           that either of them shall consult with their counsel
                           during the Agreement Term in connection with their
                           fiduciary responsibilities to the Company under the
                           Agreement, provided that such fees shall not without
                           the prior written approval of the Executive Committee
                           (which shall not be unreasonably withheld) exceed
                           $20,000 (except that such $20,000 cap shall not limit
                           the fees payable pursuant to paragraph 8 hereof).


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                  (g)      The Consultants shall have the right to accept
                           another engagement during the Agreement Term,
                           provided such engagement does not lessen the ability
                           of Meridian and Shull to perform their services
                           hereunder or conflict with the obligations of
                           Meridian and Shull hereunder or present a conflict of
                           interest with respect to the Company. Neither
                           paragraph 2 nor any of the preceding subparagraphs of
                           this paragraph 4 will be affected by this right given
                           to the Consultants.

                  5. Stock Options. No later than January 5, 2001, the Company
         will grant Shull and the Consultants stock options for an aggregate
         four million (4,000,000) shares of the common stock of the Company
         ("Shares"). Each option shall have an exercise price of $0.25 per
         Share. Allocation of the options shall be as follows: Thomas C. Shull
         (options for 2,700,000 Shares), Paul Jen (options for 500,000 Shares),
         John F. Shull (options for 500,000 Shares), Evan M. Dudik (options for
         200,000 Shares) and Peter Schweinfurt (options for 100,000 Shares). All
         options shall terminate upon any termination of the Agreement pursuant
         to paragraph 6(a)(i) or 6(a)(iv). All outstanding options shall vest
         and become exercisable upon any termination of the Agreement pursuant
         to paragraph 6(a)(ii), 6(a)(iii), 6(a)(v) or 6(a)(vi). When options
         vest and become exercisable upon a termination of the Agreement, they
         shall remain exercisable until their termination on the second
         anniversary of the termination of the Agreement (or their earlier
         exercise). In the event of a vesting resulting from a termination of
         the Agreement pursuant to paragraph 6(a)(v), such vesting shall take
         place sufficiently in advance of such termination (but subject to its
         occurrence) to permit each optionee to take all steps reasonably
         necessary to exercise his options and to deal with the Shares purchased
         under the options so that those Shares may be treated in the same
         manner in connection with the transaction described in paragraph
         6(a)(v) as the Shares of other shareholders.

                  6. Termination. (a) The Agreement, the Agreement Term, the
         term for services of Shull and the engagement of Meridian and Shull
         hereunder will terminate upon the first to occur of the following: (i)
         the tenth day after written notice by the Company to Meridian and Shull
         with respect to any material breach by Meridian or Shull of the terms
         of this Agreement or Willful Misconduct (as hereinafter defined)
         committed by Meridian or Shull; (ii) the tenth day after written notice
         by Meridian and Shull to Company that the Company is in material breach
         of this Agreement; (iii) December 4, 2001; (iv) the death or permanent
         disability of Shull; (v) the first day after the acquisition of the
         Company (whether by merger or the acquisition of all of its outstanding
         capital stock) or the tenth day after the sale of at least two-thirds
         (2/3) of the assets of each of the Company's two primary businesses;
         and (vi) or the day the Company terminates the engagement of Meridian
         and Shull when there has been no Willful Misconduct or material breach
         of the Agreement by either Meridian or Shull.

                  (b)      The parties agree that Meridian and Shull will have
                           been unable to pursue alternative, profitable
                           opportunities in order to take on this engagement,


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                           that Meridian and Shull would suffer substantial
                           financial damage if either party were to exercise its
                           rights of termination hereunder, and that the amount
                           of damages to Meridian and Shull would be difficult,
                           if not impossible, to calculate accurately.
                           Accordingly, the parties agree that if pursuant to
                           this paragraph 6, Meridian, Shull or the Company
                           shall at any time cause this Agreement to terminate
                           or the Agreement shall otherwise terminate, then the
                           Company shall pay Meridian an amount as set forth
                           below. In the event of the termination of this
                           Agreement as provided in paragraph 6(a), Meridian
                           shall receive hereunder the Base Fee and the Flat Fee
                           through the end of the month in which the date of
                           termination has occurred, plus a termination payment
                           as follows:

                                    (A)   If the termination is pursuant to
                                          paragraph 6(a)(i), 6(a)(iii) or
                                          6(a)(iv) above, no amount shall be due
                                          and owing to Meridian;

                                    (B)   If the termination is pursuant to
                                          paragraph 6(a)(ii) or 6(a)(vi),
                                          Meridian shall be entitled to receive
                                          a lump sum payment equal to the
                                          greater of (i) $540,000 or (ii) the
                                          aggregate amount of Base Fees and Flat
                                          Fees to which it would have otherwise
                                          been entitled through the end of the
                                          Agreement Term. If the termination is
                                          pursuant to paragraph 6(a)(v) and the
                                          amount realized in the transaction
                                          described therein equals or exceeds
                                          $0.50 per Share (or the equivalent of
                                          $0.50 per Share), Meridian shall be
                                          entitled to receive a lump sum payment
                                          equal to the aggregate amount of Base
                                          Fees and Flat Fees to which it would
                                          have otherwise been entitled through
                                          the end of the Agreement Term. If the
                                          termination is pursuant to paragraph
                                          6(a)(v) and the amount realized in the
                                          transaction described therein is less
                                          than $0.50 per Share (or the
                                          equivalent of $0.50 per Share),
                                          Meridian shall be entitled to receive
                                          a lump sum payment equal to the
                                          greater of the aggregate amount of
                                          Base Fees and Flat Fees to which it
                                          would have otherwise been entitled
                                          through the end of the Agreement Term
                                          or the sum of $1,000,000.

                  (c)      The parties agree that the amounts established
                           hereunder are liquidated damages reasonable under the
                           terms and circumstances of this Agreement (but
                           excluding amounts due under paragraph 8 which shall
                           continue to survive the termination of this
                           Agreement), the payment of which shall fully satisfy
                           and discharge any obligation of the Company to pay
                           (i) any further compensation under paragraph 4 and
                           (ii) any compensation for lost


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                           opportunity costs incurred by Meridian or Shull as a
                           result of either party entering into this Agreement.

                  (d)      In addition, upon termination of this Agreement for
                           any reason, the Company shall reimburse Meridian in
                           accordance with paragraph 4(d) for all reasonable
                           reimbursable expenses incurred by Meridian to the
                           time of termination.

                  (e)      Any amounts payable to Meridian pursuant to this
                           paragraph 6 shall be paid in a lump sum within five
                           business days after the termination date of this
                           Agreement; provided, however, that, if the party
                           receiving a notice pursuant to paragraph 6(a)(i) or
                           6(a)(ii) notifies the other party that a dispute
                           exists concerning the termination, then, for purposes
                           of paragraphs 5 and 6, the deemed date of termination
                           of the Agreement shall be the date on which the
                           dispute is finally resolved, either by mutual written
                           agreement of the parties or by a final judgment,
                           order or decree of an arbitrator or court of
                           competent jurisdiction (which, in either case, is not
                           appealable or with respect to which the time for
                           appeal therefrom has expired and no appeal has been
                           perfected); provided further that the date of
                           termination of the Agreement shall be extended by a
                           notice of dispute only if such notice is given in
                           good faith and the party giving such notice pursues
                           the resolution of such dispute with reasonable
                           diligence. To the extent permitted by applicable law,
                           any such dispute and any other controversy arising
                           under or in connection with this Agreement, except
                           (at the Company's election) a dispute or controversy
                           under paragraph 9, shall be settled exclusively by
                           binding arbitration in New York, New York, in
                           accordance with the Employment Dispute Resolution
                           Rules then in effect with the American Arbitration
                           Association. Judgment may be entered on the
                           arbitrator's award in any court having jurisdiction.

                  7. Insurance. The Company shall maintain in force during the
         term of this Agreement, directors' and officers' liability insurance
         ("D&O Insurance") with limits not less than five million dollars
         ($5,000,000) on terms and conditions currently provided for under the
         Company's existing insurance policy, and shall use reasonable efforts
         to name Shull as an insured thereunder within ten (10) days after this
         Agreement has been executed by the parties and approved by the Company.
         A copy of the policy shall be furnished to Shull for his information as
         soon as the policy can, with reasonable efforts, be obtained from the
         insurer.

                  8. Indemnity. If Meridian, Shull or any employee of Meridian
         who serves as Consultant to the Company ("Indemnitee") is threatened
         with or made a party to, or called as a witness or deposed or
         subpoenaed in, any action, suit or other legal, administrative or
         governmental proceeding or other legal process by reason that
         Indemnitee is or was deemed a consultant, officer, employee or other
         agent of the


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         Company or any of its affiliates, the Company shall defend, indemnify
         and hold Indemnitee harmless to the maximum extent allowed by
         applicable law and the Company's Certificate of Incorporation and
         By-Laws against all liabilities, obligations, losses, damages,
         penalties, actions, judgments, suits, claims, disbursements and
         expenses, including counsel fees reasonably incurred by Indemnitee in
         connection therewith, to the extent the same are not paid under the D&O
         Insurance ("Indemnified Liability" or "Indemnified Liabilities");
         provided however, that Indemnitee shall not be entitled to
         indemnification hereunder to the extent any such liability, obligation,
         loss, damage, penalty, action, judgment, suit, claim, disbursement or
         expense results from the gross negligence, willful misconduct or
         criminal conviction ("Willful Misconduct") of Indemnitee as determined
         by a court of competent jurisdiction. Indemnitee represents and
         warrants that it or he has not received notice of any claim which might
         constitute an Indemnified Liability hereunder. The Company represents
         that it has not received any notice of any claim against Indemnitee
         that would constitute an Indemnified Liability hereunder. Payments
         under this indemnity in respect of indemnified settlements or judgments
         shall be paid at the time of final settlement or final judgment (from
         which no appeal may be taken), or, in respect of counsel fees or costs
         of defense, which shall be limited to one counsel for all Indemnitees,
         shall be paid at the time such fees or costs are incurred.

                  With the prior written consent of the Company, which shall not
         be unreasonably withheld, Indemnitee shall have the right to pay or
         compromise and adjust all Indemnified Liabilities not manifestly
         without merit. Company shall have the right to pay or compromise
         without Indemnitee's consent Indemnified Liabilities other than those
         which arise from or are related to any criminal action, suit or
         proceeding. Notwithstanding anything to the contrary contained in the
         preceding sentence, Indemnitee's consent shall be required for any
         settlement which contains a stipulation to, or admission or
         acknowledgement of, any liability or wrongdoing on the part of
         Indemnitee.

                  This paragraph 8 shall survive the termination of this
         Agreement.

                  9. Confidentiality. Meridian and Shull shall at all times both
         during its and his engagement hereunder and after termination thereof
         regard and preserve as confidential all trade secrets and other
         confidential information pertaining to the business of the Company that
         have been or may be obtained by Meridian or Shull by reason of the
         performance of the terms of this Agreement. Meridian and Shull agree
         that all documents, reports, manuals, drawings, designs, tools,
         equipment, plans, proposals, marketing and sales plans, customer lists,
         or materials made by the Company or coming into Meridian's or Shull's
         possession by reason of its or his performance under this Agreement are
         the property of the Company and shall not be used by Meridian or Shull
         in any way prohibited by this Agreement. Except as expressly provided
         herein, during the Agreement Term and after termination thereof,
         Meridian and/or Shull shall not deliver,


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         reproduce, publish or in any way allow, after due care, information
         describing any trade secrets or other confidential documents or things
         to be delivered or used by any third party without specific direction
         or written consent of the Company or in response to lawful process.
         Immediately upon termination of this Agreement, Meridian and Shull
         shall promptly deliver to the Company all documents, tools, equipment,
         drawings, blueprints, manuals, material and significant or confidential
         letters and notes, reports, price lists, customer lists and copies
         thereof, and all other materials relating to the Company's business and
         which are in the possession of or under the control of Meridian or
         Shull. Confidential information as defined above shall exclude
         information or materials that become generally available to the public
         other than through disclosure by Meridian, Shull or any employee of
         Meridian in violation of this Agreement.

                  This paragraph 9 shall survive the termination of the
         Agreement.

                  10. Miscellaneous. This Agreement shall be governed by and
         construed in accordance with the internal laws of the state of New
         Jersey.

                  11. Modification. This Agreement may only be modified by
         mutual agreement.

                  12. Assignment. This Agreement is a personal service contract
         and may not be assigned by either party.

                  13. Notices. All notices required or permitted by this
         Agreement shall be in writing and shall be personally delivered or
         faxed to the parties at their addresses set forth below or to such
         different addresses as such parties shall direct by notice sent in
         accordance with this paragraph.

         If to Thomas C. Shull or Meridian Ventures, LLC:

                  28 Leeward Lane
                  Riverside, CT 06878
                  Tel.:  203-637-7659
                  Fax:  203-637-5576

         with copies to:

                  Alan D. Aronson, Esq.
                  Rosenfeld, Wolff, Aronson & Klein
                  2049 Century Park East, Suite 3090
                  Los Angeles, California  90067
                  Tel.:  310-556-1221
                  Fax:  310-556-0401

         If to Company:


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                  Eloy Michotte
                  Chairman of the Board, Hanover Direct, Inc.
                  Richemont International Limited
                  15 Hill Street
                  London W1J 5QT United Kingdom
                  Tel.:  011442075142743
                  Fax:  011442074910284


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         with copies to:

                  General Counsel
                  Hanover Direct, Inc.
                  1500 Harbor Boulevard
                  Weehawken, New Jersey  07087
                  Tel.: 201-863-7300
                  Fax:  201-272-3468

                  and

                  Morris J. Kramer, Esq.
                  Skadden, Arps, Slate, Meagher & Flom LLP
                  Four Times Square
                  New York, New York 10036-6522
                  Tel.:  212-735-3000
                  Fax:  212-735-2000

                  14. Counterparts. This Agreement may be signed in two or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

                  15. Attorneys' Fees. Shull shall be entitled to reimbursement
         for reasonable attorneys' fees and disbursements incurred in connection
         with the review of, and advice with respect to the execution of, this
         Agreement; provided, however, that the aggregate amount of such
         reimbursement shall not exceed $5,000. If any legal action or
         proceeding or arbitration proceeding is brought either for the
         enforcement of this Agreement or because of an alleged dispute, breach,
         default, or material misrepresentation in connection with any of the
         provisions of the Agreement, the successful or prevailing party shall
         be entitled, in addition to any other relief to which it may be
         entitled, to recover reasonable attorneys' fees and other costs
         incurred in that action or proceeding including fees and costs incurred
         on appeal and in collecting any judgment, and the arbitrator or court
         shall so provide in its judgment.

                  16. Consent to Jurisdiction. Subject to their agreement to
         binding arbitration in paragraph 6(e), the Company, Meridian and Shull
         each hereby irrevocably consent to the jurisdiction of the courts of
         the State of New Jersey for all purposes in connection with any legal
         action or proceeding which arises out of or relates to this Agreement
         and agree that any legal action or proceeding instituted under this
         Agreement shall be brought only


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         in such courts and that such courts shall have jurisdiction as provided
         above, except that the Company shall be entitled to enforce its rights
         under paragraph 9 in any court of competent jurisdiction.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
                  as of the date first above written.

                                    HANOVER DIRECT, INC.



                                    By:     /s/ Brian C. Harriss
                                       --------------------------------------

                                    MERIDIAN VENTURES, LLC


                                    By:     /s/ Thomas C. Shull
                                       --------------------------------------
                                            Thomas C. Shull, President

                                    By:     /s/ Thomas C. Shull
                                       --------------------------------------
                                            Thomas C. Shull, as an individual


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