THIS DOCUMENT IS A COPY OF THE FORM 10-Q FILED ON
                        JULY 16, 1997 PURSUANT TO A RULE 201 TEMPORARY 
                                      HARDSHIP EXEMPTION.
                       
                        
                       UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                                    WASHINGTON, D.C. 20549

                                          FORM 10-Q


            (Mark One)


                [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                SECURITIES EXCHANGE ACT OF 1934

            For the quarterly period ended May 31, 1997


                                              OR


                [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                SECURITIES EXCHANGE ACT OF 1934

            For the transition period from _______________ to _______________

            Commission File Number 0-21192


                     CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                  (Exact Name of Registrant as Specified in its Charter)


                  LOUISIANA                                 72-0721367
            (State or Other Jurisdiction of             (I.R.S. Employer
            Incorporation or Organization)               Identification No.)
            
            109 NORTH PARK BLVD., COVINGTON, LOUISIANA           70433
            (Address of Principal Executive Offices)          (Zip Code)

                                    (504) 867-5000
                   Registrant's Telephone Number, Including Area Code


      Indicate  by check mark whether the Registrant (1) has filed all reports
required to be filed  by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding  12  months  (or  for  such  shorter period that the
Registrant  was required to file such reports), and (2) has  been  subject  to
such filing requirements for the past 90 days.

                                 Yes      X    No  



At April 9, 1997, there were 5,566,906 shares of common stock, $.10 par value,
outstanding.

            

                          CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.

                                                INDEX


Part I.   Financial Information                                 Page

          Item 1.  Financial Statements

                   Statements of Operations -
                   Three  and  Nine Months 
                   Ended May 31, 1997 and May 31,1996             3

                   Balance Sheets -
                   May 31, 1997, August 31, 1996 
                   and May 31, 1996                               4

                   Statements of Cash Flows -
                   Nine Months Ended May 31, 1997 
                   and May 31, 1996                               5

                   Notes to Financial Statements                  6

          Item 2.  Management's Discussion and Analysis of
                   Financial  Condition  
                   and Results of Operations                      8

Part II.  Other Information

          Item 1.  Legal Proceedings                             13

          Item 6.  Exhibits and Reports on Form 8-K              13

          Signatures                                             14


            

                          CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.

                                 STATEMENTS OF OPERATIONS (UNAUDITED)

             FOR THE THREE AND NINE MONTHS ENDED MAY 31, 1997 AND MAY 31, 1996

                                                                             
                             Three Months Ended        Nine Months Ended
                             May 31,   May 31,         May 31,   May 31,
                             1997      1996            1997      1996
           
Net sales                $51,029,642  $60,188,532    $195,086,958 $229,009,134
Cost of sales (Note 3)    42,822,898   47,269,251     162,327,502  179,914,389
        Gross profit       8,206,744   12,919,281      32,759,456   49,094,745
                                                                              
              
Selling, general and      14,213,776   14,745,996      50,328,703   49,025,291
administrative expenses
(Note 3)
Reorganization items         543,591        _             543,591         _
      Operating income 
      (loss)              (6,550,623)  (1,826,715)    (18,112,838)      69,454
                                                                             
              
Other income (expense):
     Interest expense       (810,799)    (583,674)     (1,771,606)  (1,562,030)
     Interest income          13,074       12,021          77,856       86,036
     Other income
     (expense), net       (1,154,148)     117,280      (1,202,919)     337,086
                          (1,951,873)    (454,373)     (2,896,669)  (1,138,908)
             
                                                                             
Loss before income taxes  (8,502,496)  (2,281,088)    (21,009,507)  (1,069,454)
              
                                                                              
Income tax expense 
(benefit) (Note 4)            _          (879,000)      2,690,000     (406,000)
            
                                                                              
Net loss                  ($8,502,496)($1,402,088)   ($23,699,507)  ($663,454)
              
                                                                   
Per share data:
Net income (loss) 
per share                      ($1.53)     ($0.25)         ($4.26)     ($0.12)
             
Weighted average number of
common shares outstanding   5,566,906   5,566,906       5,566,906   5,566,906
                                                                    
         

The  accompanying  notes  are  an integral part of these financial statements.



             CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                        BALANCE SHEETS (UNAUDITED)
                                                                          
                            May 31,        August 31,        May 31,
                            1997           1996              1996
                                                                       
ASSETS
Current assets:
  Cash and cash 
  equivalents            $1,964,595        $3,303,822       $2,485,028
  
  Investments in 
  marketable securities     505,161           129,788          215,570
  
  Receivables (net  of 
  an allowance of $4.2 
  million at May 31, 1997
  and  $2.9 million at 
  August  31,1996 and  
  $806,000  at  May  31, 
  1996)                  10,517,161        14,561,102        17,527,247
  
  Merchandise inventory  46,376,942        56,387,842        61,449,046
                       
  Deferred income taxes     -----           3,033,000         1,657,377
                                                                       
  Other                   1,226,338           471,399           720,695
  Total current assets   60,590,197        77,886,953        84,054,963
                                                                         
Property and equipment, 
net                      30,410,500        36,376,959        37,143,490
                                                                           
Deferred income taxes       -----           1,234,000         2,246,169

Intangibles and other     2,385,632         3,535,639         3,600,747
                        $93,386,329      $119,033,551      $127,045,369     
                                                                            
                                                                     
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Liabilities not subject to compromise:
  Current portion of 
  long-term debt        $   124,343      $  2,478,179      $  2,450,517
  
  Accounts payable       37,443,979        47,793,786        52,550,713
                                                                               
  Accrued expenses        8,336,490         7,169,218         8,052,488
                                                                             
  Deferred revenue        3,169,594         4,621,294         5,101,197
                         49,074,406        62,062,477        68,154,915
                                                                       
Liabilities subject to
compromise:
  Current portion of 
  long-term debt            711,927             -                 -
  
  Accounts payable        4,105,363             _                 _
                                                                        
  Accrued expenses        4,765,461             -                 -
                          9,582,751             -                 -

Total current 
liabilities              58,657,157        62,062,477       68,154,915
                                                                              
  Long-term debt 
  not subject to
  compromise,            
  less current portion   18,314,145        18,191,371       18,412,684
  Deferred revenue        2,443,165         4,650,296        5,612,759
                         20,757,310        22,841,667       24,025,443
                                                                          
  Long-term debt 
  subject to compromise,
  less current portion    3,352,524             -                  -
Total liabilities        82,766,991         84,904,144      92,180,358
  Commitments and 
  contingencies              -                  -                  -
                                                                           
Shareholders' equity:
Preferred stock, 
500,000 shares 
authorized, no shares 
issued or outstanding      ______              ______         ______           
              
Common stock, $.10 par 
value; 20,000,000 shares 
authorized, 5,566,906 
issued and outstanding
at May 31, 1997, 
August 31, 1996  
and May 31, 1996            556,691            556,691         556,691
                                                                            
Paid-in capital          32,373,306         32,373,306      32,373,306
                                                                             
Retained earnings 
(deficit)               (22,310,659)         1,388,849       2,113,456
                                                                            
Less:  
Unearned compensation      -----                -----          (42,188)
  Unrealized loss on 
  marketable securities 
  available for sale       -----             (189,439)        (136,254)
  Total shareholders' 
  equity                 10,619,338        34,129,407       34,865,011
                        $93,386,329      $119,033,551     $127,045,369
                                                                            
The accompanying notes are an integral part of these financial statements.

                         

            CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
            STATEMENTS OF CASH FLOWS (UNAUDITED)
            FOR THE NINE MONTHS ENDED

                                                May 31,          May 31,
                                                1997             1996
Cash flow from operating activities:
  Net loss                              $     (23,699,507)      $    (663,454)
                                                                              
Adjustments to reconcile net loss to net
cash used in operating activities:
  Depreciation and amortization                 4,142,822           4,309,845
  Provision for uncollectible                
  receivables                                   3,049,240           1,523,024  
  Deferred income taxes                        (4,633,000)          3,717,654
  Valuation allowance for deferred tax          
  assets                                        8,900,000                _
  Store closure reserve                         6,776,247                -
  Loss on disposal of investments                 305,504                -
  Loss on disposal of assets                    1,831,364                -
  Stock awards                                        -                25,313
  (Increase) decrease in assets:
  Receivables                                     994,701             353,405
  Merchandise inventory                        10,010,902          (1,190,640)
  Other current assets                         (1,050,604)             16,458
  Increase (decrease) in liabilities:
  Accounts payable                             (6,244,445)         (1,753,055)
  Accrued expenses                              1,983,192             832,983
  Deferred revenue                             (3,658,831)         (5,251,308)
  Net cash (used in) provided by               
  operating activities                         (1,292,415)          1,920,225
                                                                              
                                                                             
Cash flow investing activities:
  Purchase of property and equipment           (1,686,512)           (630,084)
  Purchase of investments                        (500,000)                -
  Other                                            57,517             (57,008)
  Net cash used in investing activities        (2,128,995)           (687,092)
  
                                                                           
Cash flow from financing activities:
  Decrease in long-term debt                   (1,579,470)         (1,746,551)
  Decrease in capital lease obligation                -              (106,873)
  Borrowings under line of credit              31,850,000                -
  Repayments under line of credit             (28,188,347)               -     
  Net cash provided by (used in)       
  financing activities                          2,082,183          (1,853,424)
                                                                                
                                                                                
Net decrease in cash and cash equivalents      (1,339,227)           (620,291)
Cash and cash equivalents at beginning of       
period                                          3,303,822           3,105,319
Cash and cash equivalents at end of       
period                                          1,964,595           2,485,028  
                                                                               
                                                                               
Cash paid during the period for:
  Interest expense                              1,875,788           1,463,593
  Income taxes                                     26,000             118,240
                                                                               

Supplemental schedule of non-cash
investing and financing activities:
  Assets acquired under capital lease   $         285,701       $       -      
                          
                                                                               

The accompanying notes are an integral part of these financial statements.

                       

                          CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                              NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


(1)   Basis of Presentation

      The information for the three and nine months ended May 31, 1997 and May
31, 1996  is  unaudited,  but  in  the  opinion  of  management,  reflects all
adjustments,  which  are  of a normal recurring nature, necessary for  a  fair 
presentation of financial position  and  results of operations for the interim
periods.  The accompanying financial statements  should be read in conjunction
with  the financial statements and notes thereto contained  in  the  Company's
Annual Report on Form 10-K for the fiscal year ended August 31, 1996.

      The  financial  statements  have  been  prepared  in accordance with the
American Institute of Certified Public Accountants Statement of Position 90-7,
"Financial Reporting by Entities in Reorganization Under the Bankruptcy Code."
The  financial  statements  have  been  prepared  using accounting  principles
applicable  to  a  going  concern,  which assumes realization  of  assets  and
settlement   of  liabilities  in  the  normal   course   of   business.    The
appropriateness  of  using  the  going  concern basis is dependent upon, among
other  things,  the  ability to comply with  debtor  in  possession  financing
agreements, confirmation  of  a plan of reorganization, the ability to achieve
profitable operations, and the  ability to generate sufficient cash flows from
operations to meet its obligations.

      The results of operations for  the  three  and nine months ended May 31,
1997 are not necessarily indicative of the results to be expected for the full
fiscal year ending August 31, 1997.

(2)   Current portion of long-term debt and short-term  borrowings  under line
     of credit

      The  Company's term loan and line of credit facility with the banks  was
amended in June 1997 to defer principal payments for one year until June 1998,
to defer maturity  of  the facility for three years until August 31, 2000, and
to remove the Company's  merchandise inventory as collateral for the facility.
The principal balance under the term note and the line of credit were combined
into a single note with an  aggregate  principal  balance  of  $17.9  million,
bearing  interest  at 9% per annum.  Until June 1998, interest only is payable
monthly.  Thereafter,  principal  payments  are  due quarterly, with the first
payment due on September 1, 1998, and interest is  due monthly.  The amount of
the  principal  payments  is based on a 20 year amortization  with  a  balloon
payment due on August 31, 2000.   The  note  is  secured by the Company's real
estate.

      Additionally, the Company has obtained a $3 million debtor in possession
line of credit from two of its floor plan lenders.  The line of credit matures
in December 1998 and bears interest at prime plus 3% payable monthly, with two
principal payments of $1.5 million each due December  1997  and December 1998.
This line of credit, together with amounts owed under such lenders' floor plan
financing  arrangements,  is  collateralized  by  inventory and the  Company's
anticipated tax refund, as well as by a broad lien  on  all  of  the Company's
other assets.

(3)   Chapter 11 Bankruptcy Proceedings

      On  June  4,  1997,  the Company voluntarily filed for protection  under
Chapter 11 of the U.S. Bankruptcy  Code.   As part of its reorganization plan,
the Company will close by the end of July 1997  nine  of its stores as well as
one distribution center.  The facilities that will be closed are (i) one store
each  in  Tuscaloosa,  Alabama;  Longview, Texas; Texarkana,  Texas;  Jackson,
Mississippi; Chattanooga, Tennessee;  Alexandria,  Louisiana;  and  Lafayette,
Louisiana,  (ii)  two  stores  in  Memphis,  Tennessee and (iii) the Bessemer,
Alabama warehouse.

      In  connection  with  these  closures,  the Company  has  recorded  non-
recurring charges of (i) $2.0 million expected  to  be  incurred in connection
with the liquidation of inventory below cost and (ii) $1.3  million associated
with the write-off of leasehold improvements at these locations.  In addition,
the goodwill associated with the Company's July 1993 acquisition of Shreveport
Refrigeration,  Inc.  was  reduced  by  $640,000  due  to the closure  of  two
locations that were part of that acquisition.

      The  Company  has  obtained  the  approval  of the bankruptcy  court  to
continue  to pay for utility services, certain consumer  practices  (including
the continuation  of service on existing extended warranty contracts), payroll
and employee benefits,  and  property and liability insurance coverage.  These
items are recorded as accrued expenses not subject to compromise.

      The Company has secured  liabilities, not subject to compromise, owed to
its floor plan lenders and its bank  group.  The liabilities owed to the floor
plan lenders are secured by the Company's  merchandise  inventory.  The amount
due on the bank note is secured by the Company's real estate holdings.
                   
      Unsecured  claims  are  included  in the amounts listed  as  liabilities
subject to compromise.

      The Company's projections indicate  that,  during  the fourth quarter of
fiscal  1997,  it  will  have  sufficient  working  capital  to  maintain  its
operations at its current reduced levels.  However, inasmuch as the  Company's
first  fiscal  quarter  has  historically  been  the  quarter during which the
Company  builds  its  inventory  levels  in  advance of the Christmas  selling
season, the Company expects that it will require  additional cash to fund such
inventory  purchases.   Efforts  are currently underway  to  arrange  for  the
provision of the necessary funds through advances from the Company's inventory
vendor community, although no assurance can be given that such efforts will be
successful.

      The measures taken by the Company  in  the third fiscal quarter and June
of  1997  have  largely  resolved the Company's short-term  liquidity  problem
discussed in its last Form  10-Q  by extending the maturity of its bank credit
facility and obtaining a new line of  credit  from  its  floor  plan  lenders.
However,  the  Company's  cash  position  continues  to  be  strained  and, as
discussed  above,  the  Company  will  require  additional  sources of working
capital  in  order  to finance its operations during peak periods.   Moreover,
even at its current reduced  levels,  it would be difficult for the Company to
continue to conduct its operations on an  ongoing basis unless it improves its
operating  performance and profitability.  As  discussed  above,  efforts  are
underway to locate sources of additional working capital to fund the Company's
peak inventory  purchase  requirements.  In addition, the Company has recently
hired a new chief executive officer with extensive retail experience who plans
to continue implementing certain  previously  described initiatives as well as
new ways in which the Campo chain and its products  can be differentiated from
its competitors in an effort to increase sales, improve  the efficiency of its
operations and increase profit margins.

(4)   Income taxes

      The Company recorded a valuation allowance in the amount of $7.4 million
in the second quarter and an additional $1.5 million in the  third quarter for
that  portion  of  the  net  deferred  tax  asset  that cannot be realized  by
carrybacks or offsetting deferred tax liabilities.  The valuation allowance is
based  upon  the fact that sufficient positive evidence  does  not  exist,  as
defined in Statement of Financial Accounting Standards No. 109, Accounting for
Income Taxes,  regarding the Company's ability to realize certain deferred tax
assets and carryforward items.  As a result of the valuation allowance, income
tax expense was $0 and approximately $2.7 million for the three and nine-month
periods ended May 31, 1997.

(5)   Subsequent events

      On June 30,  1997,  Rex  O.  Corley,  Jr.  resigned  as President, Chief
Operating Officer and Acting Chairman and Chief Executive Officer,  and  as  a
member of the Board of Directors, of the Company.

      William E. Wulfers was named President and Chief Executive Officer and a
member  of  the  Board  of  Directors.   Since 1990, Wulfers has served as the
Regional  Vice  President  of Wal-Mart's operations  in  Louisiana,  Arkansas,
Mississippi, Virginia, North Carolina, South Carolina, Georgia and Florida.

                       

                               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                            FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

      As previously disclosed, the poor performance of the retail industry and
the Company over an extended  period  led  management  during  fiscal  1996 to
review  the Company's operations and to explore methods to improve operational
efficiency  and  reduce  costs.   To that end, the Company implemented several
initiatives designed to improve the Company's operations.  Although management
believes that these measures, if given  enough  time,  would  have  a positive
impact,  the  Company's comparable store sales continued to decline as  retail
industry conditions  have  continued  to  deteriorate,  leading  management to
conclude  during the first quarter of fiscal 1997 that a comprehensive  review
of the Company's  operations  was  appropriate for the purpose of developing a
long-term  strategic  plan.   As part of  this  self-evaluative  process,  the
Company hired a consulting firm  in  the  third  quarter  that  specializes in
turning  around financially troubled companies in consumer retail  industries.
After evaluating  and discussing with the Board of Directors several different
strategic options,  the  consulting firm ultimately recommended to the Board a
significant downsizing of  the Company's operations; specifically, the closing
of nine stores, in addition to two unprofitable stores that had been closed in
the second quarter, and the  closure of one distribution center.  In addition,
in order to allow the Company  to  fully realize the operational benefits from
the closing of these facilities, the  consulting  firm  recommended  that  the
Company  seek the protection of the federal bankruptcy laws, which the Company
did by filing  a  voluntary  petition  under  Chapter 11 on June 4, 1997.  The
Company's use of this strategic tool was primarily  to  allow  the  Company to
terminate  on  a  more  favorable basis the long-term leases of the facilities
identified for closure. The  Chapter  11  filing  was undertaken with the full
cooperation and support of the Company's bank group and floor plan lenders.

      The Company is proceeding with "Going Out of  Business"  sales at all of
the  nine stores identified for closure in order to allow for the  expeditious
and orderly  liquidation  of   the  inventory  at  the  highest  recovery, and
management  expects that the store and warehouse closings will be complete  by
the end of July  1997.   In  connection  with  these closures, the Company has
recorded non-recurring charges of (i) $2.0 million  expected to be incurred in
connection with the liquidation of inventory below cost,  which is recorded in
cost  of  goods sold, and (ii) $1.3 million associated with the  write-off  of
leasehold improvements  at these locations, which is recorded in other income.
In addition, the goodwill  associated with the Company's July 1993 acquisition
of Shreveport Refrigeration,  Inc.  was reduced by $640,000 due to the closure
of  two  locations that were part of that  acquisition,  and  this  charge  is
recorded in selling, general and administrative expenses.

      As discussed  in  "Liquidity  and  Capital  Resources,"  the Company has
amended  its  bank credit facility  to defer principal payments for  one  year
until June 1998,  to  defer  maturity  of  the  facility for three years until
August  31,  2000,  and  to  remove  the  Company's merchandise  inventory  as
collateral for the facility.  The Company has  also obtained a $3 million line
of credit from certain of its floor plan lenders.   The  Company's projections
indicate  that,  during  the  fourth  quarter  of  fiscal 1997, it  will  have
sufficient working capital to maintain its operations  at  its current reduced
levels.   However,  inasmuch  as  the  Company's  first  fiscal  quarter   has
historically  been  the  quarter during which the Company builds its inventory
levels in anticipation of  the  Christmas  selling season, the Company expects
that  it  will  require  additional  cash to fund  such  inventory  purchases.
Efforts are currently underway to arrange  for  the provision of the necessary
funds through advances from the Company's inventory vendor community, although
no  assurance  can  be  given  that  such  efforts will  be  successful.   See
"Liquidity and Capital Resources."

      Immediately following its filing for protection  under  Chapter  11, the
Company experienced temporary inventory shortages largely attributable to  the
disruptive effect that the bankruptcy filing had on its relationships with its
vendors.   These  inventory  shortages  had  an  adverse  effect  on sales and 
customer  confidence  during the first two months of the fourth quarter.   The
Company believes it has  successfully  restored  its  relationships  with  its
vendors  and  expects  that  inventory  levels  will  be rebuilt in sufficient
quantities  to  meet  customer demand by early August.  In  order  to  restore
customer confidence and stimulate sales, the Company also plans to introduce a
special advertising campaign  in  August.   However, the results of operations
for the fourth quarter will likely be significantly  and adversely affected by
this disruption as well as by the "Going out of Business"  sales  at  its nine
closing stores.


                         

Results of Operations

      The  following table sets forth, for the periods indicated, the relative
percentages that certain income and expense items bear to net sales:

                                                                               
                                Three Months Ended      Nine Months Ended
                                May 31,     May 31,     May 31,     May 31,
                                1997        1996        1997        1996
                                                                               
Net sales                       100.00%     100.00%     100.00%     100.00%
Cost of sales                    83.92       78.54       83.21       78.56
Gross profit                     16.08       21.46       16.79       21.44
Selling, general and             28.92       24.50       26.08       21.41
administrative expense
Operating income (loss)         (12.84)      (3.04)      (9.29)       0.03

Interest expense                 (1.59)      (0.97)      (0.91)      (0.68)
Interest income                   0.03        0.02        0.04        0.04
Other income, net                (2.26)       0.19       (0.62)       0.15
                                 (3.82)      (0.76)      (1.49)      (0.49)
                                                                              
Income  (loss)  before income   (16.66)      (3.80)     (10.78)      (0.46)
taxes
Income tax expense (benefit)          0      (1.46)       1.38       (0.18)
Net income (loss)               (16.66)%     (2.34)%    (12.16)%     (0.28)%
                                                                              
Three Months Ended May 31, 1997 as Compared to Three Months Ended May 31, 1996

      Net  sales  for  the  three months ended May 31, 1997 decreased 15.2% to
$51.0  million  compared  to $60.2  million  for  the  same  period  in  1996.
Comparable  retail store sales  for  the  three  months  ended  May  31,  1997
decreased by  11.2%.  The decline in sales reflects the combined impact of the
general weakness  in  the  retail  consumer  electronics  industry,  increased
competition  in  many  of  the Company's principal markets, a slowdown in  the
development of new products  in  consumer  electronic  categories  and reduced
spending  levels  by consumers for non-essential goods believed to be  due  to
record high consumer debt levels.

      Extended warranty  revenue  recognized  under  the  straight-line method
(applicable to those extended warranty contracts sold prior to August 1, 1995)
was $1.4 million and $2.0 million for the quarters ended May  31, 1997 and May
31,  1996,  respectively.   Extended warranty expenses for these same  periods
were $893,000 and $1.3 million,  respectively,  before any allocation of other
selling,  general and administrative expenses.   Since  August  1,  1995,  all
extended warranty  service  contracts  have  been  sold  by  the Company to an
unaffiliated  third  party.  The Company records the sale of these  contracts,
net of any related sales  commissions and the fees paid to the third party, as
a component of net sales and  immediately  recognizes revenue upon the sale of
such contracts.  Although the Company sells these contracts at a discount, the
amount  of  the discount approximates the cost  the  Company  would  incur  to
service these  contracts,  while  transferring  the full obligation for future
services to a third party.  Net revenue from extended  warranty contracts sold
to the third party for the quarters ended May 31, 1997 and  May  31,  1996 was
$1.4 million and $1.6 million, respectively.  The decline in net revenue  from
the  sale  of  extended  warranties is a direct result of the reduced level of
retail store sales.
 
      Gross profit for the three months ended May 31, 1997 was $8.2 million or
16.1% of net sales as compared to $12.9 million, or 21.5% of net sales for the
comparable period in the prior year.  Excluding the charges described above in
"Overview," gross profit for  the  three  months ended May 31, 1997 would have
been  $10.7  million  or  21.0% of net sales.   The  gross  profit  percentage
decrease was primarily driven  by  a  combination of soft demand affecting the
retail  industry  generally,  increased  competition   (both   in   number  of
competitors  and  corresponding  increased  price  competition)  and decreased
vendor  rebates  due to the Company's lower volume of purchases.  The  Company
also experienced an increase in promotional costs as a percent of sales due to
increased use of discounting,  no  interest  financing  and  other promotional
efforts  to  maintain  sales volumes in the challenging environment  described
above.

      Selling, general and administrative expenses were $14.8 million or 28.9%
of net sales for the three  months  ended  May  31,  1997 as compared to $14.7
million, or 24.5% of net sales for the comparable period  in  the  prior year.
Excluding  the  charges  described  above in "Overview," selling, general  and
administrative expenses would have been  $14.1  million or 27.7% of net sales.
This  percentage  increase was primarily due to decreased  vendor  funding  to
offset advertising  expenses.   The  Company  also experienced a decrease as a
percentage of sales in promotional and other fees  derived  from the Company's
private label credit card program.

      The Company's effective income tax rate was 0% and (38.5%) for the three
months  ended  May  31,  1997 and May 31, 1996, respectively.  No  income  tax
benefits were recorded in  the third quarter based on the fact that sufficient
positive  evidence  does not exist,  as  defined  in  Statement  of  Financial
Accounting Standards  No.  109,  Accounting  for  Income Taxes,  regarding the
Company's ability to realize such benefits.

Nine Months Ended May 31, 1997 as Compared to Nine Months Ended May 31, 1996

      Net  sales  for the nine months ended May 31, 1997  decreased  14.8%  to
$195.1 million compared  to  $229.0  million  for  the  same  period  in 1996.
Comparable retail store sales for the nine months ended May 31, 1997 decreased
by  12.8%.   The  decline in sales reflects the combined impact of the general
weakness in the retail consumer electronics industry, increased competition in
many of the Company's  principal markets, a slowdown in the development of new
products in consumer electronic  categories  and  reduced  spending  levels by
consumers  for  non-essential goods believed to be due to record high consumer
debt levels.

      Extended warranty  revenue  recognized  under  the  straight-line method
(applicable to those extended warranty contracts sold prior to August 1, 1995)
was $4.6 million and $6.6 million for the nine months ended  May  31, 1997 and
May 31, 1996, respectively.  Extended warranty expenses for these same periods
were  $2.9  million  and $4.1 million, respectively, before any allocation  of
other selling, general and administrative expenses.  Net revenue from extended
warranty contracts sold  to  the third party for the nine months ended May 31,
1997 and May 31, 1996 was $5.3  million  and  $6.6 million, respectively.  The
decline  in  net revenues from the sale of extended  warranties  is  a  direct
result of the reduced level of retail store sales.

      Gross profit for the nine months ended May 31, 1997 was $32.8 million or
16.8% of net sales as compared to $49.1 million, or 21.4% of net sales for the
comparable period in the prior year.  Excluding the charges described above in
"Overview," and  charges  totaling  $16.7 million taken in the second quarter,
gross profit for the nine months ended  May  31,  1997  would  have been $37.4
million  or  20.8%  of  net  sales.  The gross profit percentage decrease  was
primarily driven by a combination of soft demand affecting the retail industry
generally,  increased  competition  (both   in   number   of  competitors  and
corresponding increased price competition) and decreased vendor rebates due to
the Company's lower volume of purchases.
                  
      Selling, general and administrative expenses were $50.9 million or 26.1%
of  net  sales  for  the nine months ended May 31, 1997 as compared  to  $49.0
million, or 21.4% of net  sales  for  the comparable period in the prior year.
Excluding the charges described above in  "Overview,"  and  charges  totalling
$16.7 million taken in the second quarter, selling, general and administrative
expenses would have been $43.3 million or 21.0% of net sales.

      The  Company's effective income tax rate was 12.8% and  (38.0%) for  the
nine months  ended May 31, 1997 and May 31, 1996, respectively.  The effective
income tax rate  for  the  nine  months  ended  May  31,  1997  results from a
valuation  allowance  of  $7.4  million  that  was recorded during the  second
quarter and a valuation allowance of $1.5 million that was recorded during the
third quarter.

Liquidity and Capital Resources

    Net cash used in operating activities was  $1.3 million and ($1.9) million
for the nine months ended May 31, 1997 and May 31,  1996  respectively,  while
net cash provided by financing activities for the same comparable periods  was
$2.1  million and ($1.9) million, respectively. The excess cash from financing
activities in the  current period, which was previously provided by short term
borrowing arrangements,  was  used  by  the Company for an investment in a new
primary  business system.  The  shortfall in  cash  from  operations  reflects 
the reduced level of sales by the Company.

     The Company incurred capital expenditures  of  $1.7 million and $630,000
during  the  nine  months ended May 31, 1997 and May 31,  1996,  respectively,
primarily in connection  with  new  computer equipment purchases and leasehold
improvements funded with short-term borrowings.

      As  of  May 31, 1997, the Company  used  several  "floor  plan"  finance
companies to finance  the  majority of its merchandise purchases.  The Company
has negotiated an aggregate  borrowing  limit  with these finance companies of
approximately  $45 million and it collateralizes  the  outstanding  borrowings
with merchandise inventory and certain receivables.  The new arrangements with
its floor plan lenders  are "pay-as-sold" lending facilities, with the Company
being required to pay down indebtedness on a daily basis as the financed goods
are  sold.  In addition, the  Company  finances  certain  inventory  purchases
through open-account arrangements with various vendors.

      The Company has also obtained debtor in possession financing from two of
its floor  plan  lenders in the form of a $3 million line of credit.  The line
of credit matures  in  December  1998  and  bears  interest  at prime plus 3%,
payable monthly, with two principal payments of $1.5 million each due December
1997 and December 1998.  The primary use of the line of credit  is to fund the
Company's "going out of business" sales for its closing stores and  to finance
inventory  purchases during peak periods.  This line of credit, together  with
amounts owed  under  such  lenders'  floor  plan  financing  arrangements,  is
collateralized  by  merchandise  inventory  and  the Company's anticipated tax
refund, as well as by a broad lien on all of the Company's other assets.

      The Company's bank term loan and line of credit was amended in June 1997
to defer principal payments for one year until June 1998, to defer maturity of
the  facility  for  three  years  until August 31, 2000,  and  to  remove  the
Company's merchandise inventory as collateral for the facility.  The principal
balance under the term note and the line of credit were combined into a single
note with an aggregate principal balance of $17.9 million, bearing interest at
9% per annum.  Until June 1998, interest only is payable monthly.  Thereafter,
principal payments are due quarterly,  with the first payment due September 1,
1998, and interest is due monthly.  The  amount  of  the principal payments is
based on a 20 year amortization with a balloon payment due on August 31, 2000.
The note is secured by the Company's real estate.

      The Company has experienced declining comparable  store  sales since the
third  quarter of fiscal 1995 resulting in the Company's reporting  of  a  net
loss of  $1.4  million for fiscal 1996 and a net loss of $23.7 million for the
first nine months  of  fiscal  1997 (after the second quarter charges of $16.7
million and the third quarter charges  discussed  in  "Overview" totaling $4.4
million). In addition, for the nine months ended May 31,  1997,  net cash used
in operating activities by the Company was approximately $1.3 million, leaving
the Company with a cash balance of approximately $2.0 million as of   May  31,
1997.

      The  Company's  projections  indicate that, during the fourth quarter of
fiscal  1997,  it  will  have  sufficient  working  capital  to  maintain  its
operations at its current reduced  levels.  However, inasmuch as the Company's
first  fiscal quarter has historically  been  the  quarter  during  which  the
Company  builds  its  inventory  levels  in  advance  of the Christmas selling
season, the Company expects that it will require additional  cash to fund such
inventory  purchases.   Efforts  are  currently  underway to arrange  for  the
provision of the necessary funds through advances from the Company's inventory
vendor community, although no assurance can be given that such efforts will be
successful.

      The measures taken by the Company in the third  fiscal  quarter and June
of  1997  have  largely  resolved  the Company's short-term liquidity  problem
discussed in its last Form 10-Q by extending  the  maturity of its bank credit
facility  and  obtaining  a new line of credit from its  floor  plan  lenders.
However,  the  Company's cash  position  continues  to  be  strained  and,  as
discussed above,  the  Company  will  require  additional  sources  of working
capital  in  order  to  finance its operations during peak periods.  Moreover,
even at its current reduced  levels,  it would be difficult for the Company to
continue to conduct its operations on an  ongoing basis unless it improves its
operating  performance and profitability.  As  discussed  above,  efforts  are
underway to locate sources of additional working capital to fund the Company's
peak inventory  purchase  requirements.  In addition, the Company has recently
hired a new chief executive officer with extensive retail experience who plans
to continue implementing certain  previously  described initiatives as well as
new ways in which the Campo chain and its products  can be differentiated from
its competitors in an effort to increase sales, improve  the efficiency of its
operations and increase profit margins.

      As is customary when a company files for protection  under  Chapter  11,
the  Company  has  received  a  letter from the Nasdaq Stock Market requesting
certain information and evidence that the Company continues to meet all Nasdaq
National Market listing requirements.   Although  the Company has responded to
Nasdaq's  request  fully,  there  can  be no assurance that  Nasdaq  will  not
commence delisting proceedings against the  Company.   If the Company's common
stock  were  to  be delisted, the Company's common shareholders  would  likely
experience a reduction in the liquidity of their shares.

Impact of Inflation

      In management's  opinion, inflation has not had a material impact on the
Company's financial results  for  the three and nine months ended May 31, 1997
and May 31, 1996. Technological advances  coupled  with  increased competition
have  caused  prices  on  many  of  the Company's products to decline.   Those
products that have increased in price have in most cases done so in proportion
to current inflation rates.  Management  does  not  anticipate  that inflation
will have a material impact on the Company's financial results in the future.

                              

                                     PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

       There have been no material developments during the three months  ended
May 31, 1997.

Item 6.  Exhibits and Reports on Form 8-K

        (a) Exhibits

        3.1   Amended  and  Restated Articles of Incorporation of the Company
             (1), as amended  by  Articles  of  Amendment  dated  January 3,
             1995(2).

        3.2   Composite By-laws of the Company, as of October 4, 1996.(3)

        10.1  Severance  Agreement  and  Personal Services Contract and  Non-
              competition Agreement, dated  March  19,  1997,  by and between
              Campo Electronics, Appliances and Computers, Inc.  and  Anthony
              P. Campo.

        10.2  Employment  Agreement,  dated  March  21,  1997, by and between
              Campo Electronics, Appliances and Computers,  Inc.  and  Rex O.
              Corley,  Jr.,  as  terminated by Severance Agreement dated June
              19, 1997.

        10.3  Employment Agreement,  dated  March  21,  1997,  by and between
              Campo Electronics, Appliances and Computers, Inc.  and  Charles
              S. Gibson, Jr., as amended on June 24, 1997.

        10.4  Employment  Agreement,  dated  March  21,  1997, by and between
              Campo Electronics, Appliances and Computers,  Inc. and Wayne J.
              Usie, as amended on June 24, 1997.

        10.5  Employment  Agreement,  dated  April 14, 1997, by  and  between
              Campo Electronics, Appliances and  Computers,  Inc. and John K.
              Ross.

        10.6  Employment  Agreement,  dated  April  23, 1997, by and  between
              Campo Electronics, Appliances and Computers,  Inc. and James B.
              Warren.

        10.7  Employment Agreement, dated June 15, 1997, by and between Campo
              Electronics,  Appliances  and  Computers, Inc. and  William  E.
              Wulfers.

        27   Financial Data Schedule
        __________

        (1)  Incorporated  by  reference  from  the   Company's  Registration
              Statement  on Form S-1 (Registration No. 33-56796)  filed  with
              the Commission on January 6, 1993.
        (2) Incorporated by  reference from the Company's Quarterly Report on
              Form 10-Q for the fiscal quarter ended February 28, 1995.
        (3) Incorporated by reference  from the Company's Quarterly Report on
              Form 10-Q for the fiscal quarter ended November 30, 1996.

(b) Reports on Form 8-K.
    A current report on Form 8-K was  filed on June 4, 1997 to report the
    Company's  filing  of a voluntary  petition  to  reorganize  under
    Chapter 11 of the Federal Bankruptcy Code.

                        

                          CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.


                                              SIGNATURES









Pursuant  to the requirements of the Securities  Exchange  Act  of  1934,  the
Registrant  has  duly  caused  this  report  to be signed on its behalf by the
undersigned thereunto duly authorized.




                          CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.





July 14, 1997                /s/ WILLIAM E. WULFERS
                              William E. Wulfers
                              President and Chief Executive Officer,




                              /s/ WAYNE J. USIE
                              Wayne J. Usie
                              Chief Financial Officer and Secretary