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 FEBRUARY 28, 1998


                                      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 IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)

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,  1998,  there  were  5,604,406 shares of common stock, $.10 par
value, outstanding.



<PAGE>
               CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.

                                     INDEX


Part I.      Financial Information                                       Page

             Item 1.  Financial Statements

             Statements of Operations -
               Three and Six Months Ended February 28, 1998 and 1997      3

             Balance Sheets -
               February 28, 1998 and August 31, 1997                      4

             Statements of Cash Flows -
               Six Months Ended February 28, 1998 and 1997                5

             Notes to Financial Statements                                6

             Item 2.  Management's Discussion and Analysis of
                      Financial Condition and Results of Operations      10


PART II.     OTHER INFORMATION

             Item 1.  Legal Proceedings                                  17

             Item 6.  Exhibits and Reports on Form 8-K                   17

             Signatures                                                  18




<PAGE>
               CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                            (DEBTOR-IN-POSSESSION)

                     STATEMENTS OF OPERATIONS (UNAUDITED)

         FOR THE THREE AND SIX MONTHS ENDED FEBRUARY 28, 1998 AND 1997

<TABLE>
<CAPTION>
                                        THREE MONTHS ENDED                           SIX MONTHS ENDED
                                 FEBRUARY 28,         FEBRUARY 28,          February 28,           February 28,
                                    1998                  1997                  1998                   1997
                                -------------         ------------          ------------          --------------
<S>                             <C>                   <C>                   <C>                   <C>
Net Sales                       $ 44,020,174          $ 78,294,573          $ 81,929,457          $ 144,057,316
Cost of Sales                     34,082,521            66,611,690            62,982,095            119,504,605
     Gross profit                  9,937,653            11,682,883            18,947,362             24,552,711
Selling general and                9,986,679            22,316,073            19,427,733             36,114,926
  administrative expenses
     Operating loss                  (49,026)          (10,633,190)             (480,371)           (11,562,215)
Other income (expense):
     Interest expense               (348,059)             (511,291)             (916,493)              (960,807)
     Interest income                   7,522                45,080                17,849                 64,782
     Other income, net               255,659              (107,511)              434,781                (48,771)
                                     (84,878)             (573,722)             (463,863)              (944,796)
Loss before income taxes            (133,904)          (11,206,912)             (944,234)           (12,507,011)
  and reorganization items
Expense from reorganization         (371,038)                 ----              (525,572)
  items
Income tax expense                       ---             3,184,000                   ---              2,690,000
Net loss                        $   (504,942)         $(14,390,912)         $ (1,469,806)         $ (15,197,011)
Per share data:
Basic and diluted  loss         $      (0.09)          $     (2.59)         $      (0.26)         $       (2.73)
  per common share
Weighted averge number             5,664,823             5,566,906             5,728,715              5,566,906
  of common shares
  outstanding
</TABLE>


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



<PAGE>
               CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                            (DEBTOR-IN-POSSESSION)
                          BALANCE SHEETS (UNAUDITED)

<TABLE>
<CAPTION>
                                                         February 28,            August 31,
                                                             1998                   1997
                                                       ----------------       ---------------
                       ASSETS
<S>                                                    <C>                    <C>
Current assets:
    Cash and cash equivalents                          $      635,295         $    1,640,849
    Investments in marketable securities                      115,690                421,431
 Receivables (net of an allowance of $1.9 million at
    February 28, 1998 and $1.6 million at August 31,        5,595,210              8,603,894
    1997)
    Merchandise inventory                                  32,818,073             31,951,502
    Other                                                   1,038,998                873,200
                                                       ----------------       ---------------
 Total current assets                                      40,203,266             43,490,876
Property and equipment, net                                25,638,378             27,741,034
Intangibles and other                                       2,779,072              2,899,774
                                                       ----------------       ---------------
                                                       $   68,620,716         $   74,131,684
                                                       ================       ===============
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities not subject to compromise:
    Current liabilities:
       Current portion of long-term debt               $   18,734,345         $      350,438
       Short-term borrowings                                1,500,000              3,000,000
       Accounts payable                                       321,947              1,276,895
       Accounts payable-floor plan                         26,963,318             25,201,687
       Accrued expenses                                     5,003,722              6,246,917
       Deferred revenue                                     1,971,438              2,713,040
                                                       ----------------       ---------------
   Total current liabilities not subject
     to compromise                                         54,494,770             38,788,977
                                                       ----------------       ---------------
    Long-term debt, less current portion                      101,634             18,368,005
    Deferred revenue                                        1,094,663              1,937,256
                                                       ----------------       ---------------
    Total long-term liabilities not subject
      to compromise                                         1,196,297             20,305,261
                                                       ----------------       ---------------
Liabilities subject to compromise                          14,261,605             14,662,108
                                                       ----------------       ---------------
    Total liabilities                                      69,952,672             73,756,346
                                                       ----------------       ---------------
Commitments and contingencies
Shareholders' equity (deficit):
Common stock, $.10 par value; 20,000,000 shares
    authorized, 5,604,406 and 5,791,906 issued and
    outstanding at February 28, 1998 and August 31,
    1997, respectively                                        560,441                579,191
Paid-in capital                                            32,421,119             32,639,856
Retained earnings (deficit)                               (34,313,516)           (32,843,709)
                                                       ----------------       ---------------
    Total shareholders' equity (deficit)                   (1,331,956)               375,338
                                                       ----------------       ---------------
                                                       $   68,620,716         $   74,131,684
                                                       ================       ===============

</TABLE>

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



<PAGE>
               CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                            (DEBTOR-IN-POSSESSION)
                     STATEMENTS OF CASH FLOWS (UNAUDITED)
                     FOR THE SIX MONTHS ENDED FEBRUARY 28
<TABLE>
<CAPTION>
                                                                    1998                      1997
                                                               --------------            --------------
<S>                                                            <C>                       <C>
Cash flow from operating activities:
     Net loss                                                  $  (1,469,806)            $ (15,197,011)
Adjustments to reconcile net loss to net cash
 provided by (used in)
  operating activities:
     Depreciation and amortization                                 1,630,438                 2,438,568
     Deferred income taxes                                              ----                 4,267,000
     Store closure reserve                                              ----                 5,476,247
     Write down of assets held for sale                                 ----                   737,605
     Provision for uncollectible receivables                         595,770                 2,324,243
     (Gain) loss on disposal of assets                               (19,770)                  181,850
     Cancellation of stock awards                                    (17,187)                     ----
     (Increase) decrease in assets:
          Receivables                                              2,412,914                   942,356
          Merchandise inventory                                     (866,571)                4,627,979
          Other assets                                              (111,109)                 (560,358)
     Increase (decrease) in liabilities:
          Accounts payable                                          (954,948)                  (69,800)
          Accounts payable - floor plan                            1,761,631                (4,861,666)
          Accrued expenses                                        (1,636,394)                 (515,318)
          Deferred revenue                                        (1,584,195)               (2,548,632)
          Liabilities subject to compromise                           83,956                      ----
Adjustments due to reorganization items:
     Loss on disposal of assets                                       46,391                      ----
     Increase in accrued expenses for restructuring items            325,571                      ----
     Payment of restructuring charges                               (152,672)                     ----
                                                               --------------            --------------
     Net cash provided by (used in) operating activities              44,019                (2,756,937)
                                                               --------------            --------------
Cash flow from investing activities:
     Purchase of property and equipment                               (1,392)               (1,484,736)
     Proceeds from sale of assets                                     83,697                      ----
     Proceeds from sale of assets due to reorganization               73,117                      ----
     Redemption of Treasury Bills                                    310,892                      ----
                                                               --------------            --------------
     Net cash provided by (used in) investing activities             466,314                (1,484,736)
                                                               --------------            --------------
Cash flow from financing activities:
     Borrowings under long-term debt                                 191,210                      ----
     Repayment of long-term debt                                    (207,097)               (1,584,502)
     Borrowings under line of credit                                    ----                22,750,000
     Repayments under line of credit                                    ----               (20,150,000)
     Borrowings under DIP line of credit                           2,700,000                      ----
     Repayments under DIP line of credit                          (4,200,000)                     ----
                                                               --------------            --------------
          Net cash provided by (used in) financing activities     (1,515,887)                1,015,498
                                                               --------------            --------------
Net decrease in cash and cash equivalents                         (1,005,554)               (3,226,175)
Cash and cash equivalents at beginning of period                   1,640,849                 3,303,822
                                                               --------------            --------------
Cash and cash equivalents at end of  period                      $   635,295               $    77,647
                                                               ==============            ==============
Cash paid during the period for:
     Interest expense                                            $   925,960               $ 1,166,759
                                                               ==============            ==============
     Income taxes                                                       ----               $    26,000
                                                               ==============            ==============
Supplemental schedule of non-cash investing and financial
activities:
     Assets acquired under capital lease                                ----               $   285,701
                                                               ==============            ==============

</TABLE>
  The accompanying notes are an integral part of these financial statements.



<PAGE>
               CAMPO ELECTRONICS, APPLIANCES AND COMPUTERS, INC.
                            (DEBTOR-IN-POSSESSION)
                   NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


(1)  BASIS OF PRESENTATION

      The  information for the three and six months ended February 28, 1998 and
1997 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/A for the fiscal year ended August 31, 1997.

      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 obligations.  See Note 2.

      The results of operations for the three and six months ended February 28,
1998 are not necessarily indicative  of the results to be expected for the full
fiscal year ending August 31, 1998.

      Certain prior period amounts have  been  reclassified to conform with the
presentation shown in the financial statements as  of February 28, 1998 and for
the three month and six month periods then ended.

(2)   CHAPTER 11 BANKRUPTCY PROCEEDINGS AND RESTRUCTURING

      On June 4, 1997, the Company filed a voluntary  petition  in  the  U.  S.
Bankruptcy Court for the Eastern District of Louisiana for reorganization under
Chapter  11  of  the  U.  S.  Bankruptcy  Code  (the "Bankruptcy Code"), and is
currently operating its business as debtor-in-possession  under the supervision
of the Bankruptcy Court (the "Bankruptcy Court").

      As of the petition date, actions to collect pre-petition indebtedness are
stayed  and  other  contractual  obligations  may not be enforced  against  the
Company.   In  addition,  under the Bankruptcy Code,  the  Company  may  reject
executory contracts, including  lease  obligations.   Parties affected by these
rejections  may file claims with the Bankruptcy Court in  accordance  with  the
reorganization  process.  Substantially all liabilities as of the petition date
are subject to settlement  under  a  plan of reorganization to be voted upon by
creditors and equity security holders  and  approved  by  the Bankruptcy Court.
The  Company  has  not yet prepared or submitted a plan of reorganization.   As
provided by the Bankruptcy  Code,  the  Company  has  the exclusive right for a
period  of  time  to  submit  a plan of reorganization. This  period  has  been
extended by the Bankruptcy Court  to  April  20, 1998, and the Company plans to
file a motion with the Bankruptcy Court seeking approval of a further extension
to June 20, 1998.

      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  is
also  allowed  to continue  normal  business  practices,  including  purchasing
inventory and payment of normal operating expenses incurred after the filing of
the bankruptcy petition.

      As part of  the  reorganization process, the Company closed eleven stores
and one distribution center  in  fiscal  1997.   It  also  closed an additional
distribution center in October, 1997, after its fiscal year-end.   It  has  cut
corporate  overhead  expenses  and  store operating expenses, and has initiated
several strategies designed to improve  operating  performance  (as  more fully
explained in Item 1 of its Annual Report on Form 10-K for fiscal 1997).   Based
upon  projections  of  its  operating  results,  the  Company believes that its
existing  funds, its operating cash flows, the available  DIP  line  of  credit
discussed in  Note  3 to the financial statements, and the vendor and inventory
financing arrangements discussed in Note 3 are sufficient  on  an overall basis
to satisfy expected cash requirements in fiscal 1998.  However,  there  may  be
short  periods of time (one or two business day time periods) where  cash needs
temporarily  exceed availability, and this  may  result in a  few late required
payments to floor  plan and  other vendors.  This would result in an additional
default which  would  not  be covered by the existing  forbearance  agreements.
Subsequent  to  February 28, 1998,  a  default of  this  nature  did  occur  as
described in Note 3 to the financial statements.  Also, there is  no  assurance
that the Company's projected operating results  will be achieved during  fiscal
1998.  The Company  will  likely  require additional working  capital financing
in fiscal 1999, and these needs are currently  being discussed with the  debtor
in possession ("DIP") lenders.

      On December  16,  1997,  the  Company  was  notified  by the Nasdaq Stock
Market,  Inc.  ("Nasdaq")  that  the Company does not meet all of  the  listing
requirements for continued listing on the Nasdaq National Market based upon its
financial statements of August 31,  1997,  and  that  Nasdaq  was  commencing a
review  of  the  Company's  eligibility for continued listing.  On January  12,
1998, the Company was notified  by  Nasdaq  that  its  Common  Stock  would  be
delisted  effective  January  19,  1998  unless  the  Company  pursued Nasdaq's
procedural remedies. The Company requested a written submission  hearing before
the  Nasdaq  Listing  Qualifications  Panel,  and  this  hearing took place  on
February 19, 1998.  On March 9, 1998, the Company was notified  of  the results
of  that  hearing  and  that the Company's Common Stock would be delisted  from
Nasdaq effective immediately  with the close of business on March 9, 1998.  The
Company's Common Stock is now traded on the Over the Counter Bulletin Board.

(3)   DEBT

      See Notes 6 and 7 of the  Company's  financial statements included in its
Annual Report on Form 10-K/A for the fiscal   year  ended August 31, 1997 for a
detailed description of the Company's debt arrangements.   Long-term debt as of
February 28, 1998 consisted of three term loans, one with a bank group, and the
others  with  financial  institutions.  The outstanding principal  balance  and
applicable interest rate on  the  term  loan  with the banks as of February 28,
1998 were $18.4 million and 9%, respectively.   On  January 1, 1998, additional
notes were issued to the bank group covering legal fees  in the total amount of
$191,000.  These notes call for monthly payments of principal  and  interest of
$2,500  per  month from January 1, 1998 through June 1, 1998, $5,000 per  month
from July 1, 1998 through June 1, 2000, and a balloon payment on June 27, 2000.
The outstanding  principal  balance  and  applicable  interest  rate  on  these
additional notes as of February 28, 1998 were $189,000 and 9.5%, respectively.

      The term loan with the banks contains certain reporting requirements  and
restrictive  covenants  which  require  the Company to maintain certain minimum
annual  earnings  levels  and working capital  levels.   This  term  loan  also
contains a cross default provision  with  all  other  debt  instruments  of the
Company  and  a provision which prohibits the Company from paying dividends  on
its common stock.   As  of  August  31, 1997, the Company was not in compliance
with certain of the covenants contained  in  the  bank  term  loan,  and was in
default  of  this  agreement  due  to these violations as well as certain cross
default provisions.  However, on December  12,  1997  the  Company obtained the
agreement of the lenders to forebear through September 1, 1998  the enforcement
of their rights and remedies under the term loan agreement contingent  upon the
approval by the Bankruptcy Court of this forbearance agreement and an agreement
requiring the payment by the Company of certain professional fees to the banks.
The  Bankruptcy Court has approved these agreements.  The forbearance agreement
also provides  that  the  lenders will forebear the enforcement of their rights
and remedies through September  1,  1998 if the Company were to violate certain
financial covenants relating to minimum  annual  earnings  and  working capital
levels during that period, which the Company does not expect to comply  with in
the  upcoming  fiscal  year.   On  January  12,  1998, the Company obtained the
agreement of the lenders to extend the forbearance of their rights and remedies
related to the prior defaults discussed above and the potential future defaults
of certain financial covenants through December 1, 1998.

      Subsequent to February 28, 1998, due to a temporary  cash  shortfall, the
Company  defaulted  on  certain of its normal daily payments to the four  floor
plan lenders.  These required  payments  were  caught up and paid within one to
two business days of the original due date. Because of cross default provisions
in the term loan with the banks, these late payments to floor plan lenders have
created a default  under  the  term loan.  Because of the legal and other costs
associated with obtaining further forbearance agreements or waivers from either
the banks or the floor plan lenders,  the Board of Directors of the Company and
Management  made  a  decision  not to pursue  further  forbearance  agreements,
amendments or waivers.  This has  resulted  in  the  Company  being required by
generally  accepted  accounting  principles to reclassify the entire  principal
balance of the bank term loan as a  current liability  on the February 28, 1998
balance sheet.  It should  be noted that the banks  and  the floor plan lenders
have taken no actions against the Company to exercise their  rights  under  the
default provisions  of  the  agreements  or  to  accelerate any of the required
payments.

      The  principal  balance  of the first of the other term  loans  was  $3.7
million as of February 28, 1998 and this note is carried as a liability subject
to compromise.  The secured and  unsecured  portions of this debt are yet to be
determined, and this debt does not accrue interest  while  the  Company  is  in
Chapter  11.  On March 5, 1998, the Company agreed to pay the lender $5,000 per
month effective  February  1,  1998  to compensate the lender for the estimated
depreciation in the value of the equipment and fixtures which secure this loan,
and this agreement was approved by the  Bankruptcy  Court.   This  agreement is
subject to change in a future Bankruptcy Court hearing to determine the secured
and  unsecured  portions of this debt.  The second of the other term loans  was
$245,000 as of February  28,  1998,  and accrues interest payable monthly at an
annual rate of 9%.

      As  of February 28, 1998, the Company  also  uses  several  "floor  plan"
finance companies  to  finance  the  majority  of  its inventory purchases.  In
addition, the Company finances some of its inventory  purchases  through  open-
account  arrangements  with  various  vendors.   The  Company  has an aggregate
borrowing  limit  with the floor plan finance companies of approximately  $43.5
million.  Each of the  floor  plan  financing agreements contains cross default
clauses with all other debt instruments  of the Company.  As of August 31, 1997
the Company was not in compliance with several covenants contained in the floor
plan agreements and was also in default of  those  floor plan agreements due to
its  failure to make certain payments required by the  agreements  relating  to
inventory  shortages  and  obsolescence identified by the Company.  The Company
obtained waivers for some of  these  violations and as of December 11, 1997 had
obtained the agreement of each of the  floor  plan  lenders  to  forebear their
rights and remedies pursuant to the floor plan agreements subject  to:  (i) the
Company's  payment  of approximately $1,654,000 in principal, plus interest  at
the prime rate plus 3%,  to  the  floor  plan  lenders at various dates through
December 15, 1998, and (ii) the approval of these forbearance agreements by the
Bankruptcy Court.  The Bankruptcy Court subsequently approved these forbearance
agreements.  As  previously  discussed,  subsequent  to  February 28, 1998, the
Company  failed  to  make certain  required  payments to its floor plan lenders
thereby resulting in a default under the floor plan agreements.  Because of the
legal and other costs associated with obtaining further forebearance agreements
or waivers, the  Board  of  Directors  and  Management  of  the  Company made a
decision not to pursue such forbearance  agreements  or waivers.  This  had  no
effect upon the classification of the Accounts payable - floor  plan,  as it is
ordinarily classified as a current liability.

      The Company has also obtained debtor in possession ("DIP") financing from
two  of its floor plan lenders in the form of a $1.5  million  line  of  credit
which  had  an  outstanding  balance of $1.5 million at February 28, 1998.  The
line of credit financing agreement  contains certain covenants, a cross default
clause with all other debt instruments  of  the  Company,  and it prohibits the
Company  from  spending  more  than  $50,000  per year on capital  expenditures
without approval.  As of August 31, 1997, the Company  was  not  in  compliance
with  certain  covenants  contained  in  this  agreement,  but  the Company has
obtained  the  forbearance agreements discussed  above.  However, as previously
discussed, the default under  the  floor plan agreements and the existence of a
cross default provision in the  line  of credit has created a default under the
line of credit.  The Board of Directors and Management of the Company have made
a decision not to  pursue further  forbearance agreements or waivers.  This has
had no effect upon the classificiation of the outstanding  balance  on the line
of credit, as it is ordinarily classified as a current liability.

(4)   INCOME TAXES

      The  Company's  effective  income tax rate was 0% and 38% for  the  three
months ended February 28, 1998 and  1997,  respectively.  These  effective  tax
rates are due to a valuation allowance recorded by the Company 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.

(5)   EARNINGS PER SHARE

      The  Company  has  adopted  the  provisions  of  Statement  of  Financial
Accounting Standards  No.  128  "Earnings  Per  Share"  ("SFAS  No.  128")  and
accordingly  has included a dual presentation of basic and diluted earnings per
share on its statement  of  operations.   Basic  earnings  per  share  excludes
dilution and is computed by dividing income available to common stockholders by
the  weighted  average  number  of  common  shares  outstanding for the period.
Diluted earnings per share reflects the potential dilution  that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock  that then shared
in the earnings of the entity, assuming no antidilution.  Stock  options issued
under the Company's Stock Incentive Plan as of February 28, 1998 and 1997, were
not  included  in  the computation of diluted earnings per share as the  effect
would  have  been antidilutive.   All  prior  periods  have  been  restated  in
accordance with SFAS No. 128.

(6)   CONTINGENCIES AND COMMITMENTS

      In the normal  course  of  business,  the  Company is involved in various
legal  proceedings.   Based upon the Company's evaluation  of  the  information
presently available, management  believes  that  the ultimate resolution of any
such  proceedings  will not have a material adverse  effect  on  the  Company's
financial position, liquidity or results of operation.

      Under Chapter  11, substantially all pending litigation and collection of
outstanding claims against  the  Company  at the date of the filings are stayed
while the Company continues business operations  as  debtor-in-possession.   As
debtor-in-possession under Chapter 11, the Company is authorized to operate its
business,  but it may not engage in transactions outside the ordinary course of
business without  first complying with the notice and hearing provisions of the
Bankruptcy  Code  and  obtaining  Bankruptcy  Court  approval  where  and  when
necessary.

      During fiscal  years  1998  and  1999,  the  Company's  existing computer
software  systems will need to be evaluated and computer programs  upgraded  or
amended to  be  year  2000 compliant.  The cost of this effort has not yet been
determined.

      At February 28, 1998,  there  was  a balance of $116,000 in U.S. Treasury
Bills which were pledged to support certain  executive employment and severance
agreements.

(7)   NEW ACCOUNTING STANDARDS

      Statement  of  Financial  Accounting  Standards   No.   130,   "Reporting
Comprehensive  Income," is required to be implemented during the first  quarter
of the Company's  fiscal year ending August 31, 1999 and Statement of Financial
Accounting Standards  No.  131, "Disclosure about Segments of an Enterprise and
Related Information," and Statement  of  Financial Accounting Standards No. 132
"Employer's Disclosures about Pension and  Other  Postretirement  Benefits" are
required to be implemented during the Company's fiscal year ending  August  31,
1999.   Management  believes adoption of these statements will have a financial
statement disclosure  impact  only  and  will not have a material effect on the
Company's financial position, operations or cash flows.




<PAGE>
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL OVERVIEW

      The Company experienced comparable store  sales  declines of 23.1% during
the quarter ended February 28, 1998 as compared to the same  period  last year,
continuing  a trend that began in the third quarter of fiscal 1995.  Comparable
store sales declined  by 23.0% during the six months ended February 28, 1998 as
compared to the same period  last  year.  The decline in comparable store sales
reflects  the combined impact of a 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 of consumers  for  non-essential  goods.
The decrease in net sales  for  three and six months ended February 28, 1998 is
attributable  to the comparable store sales decline together with  the  closure
of 11 stores during fiscal 1997.

      Net  loss  before income taxes and reorganization  items  for  the  three
months ended February  28,  1998  and  1997 were $(134,000) and $(11.2 million)
respectively. During the second quarter  of  1997, the Company recorded certain
non-recurring charges affecting net loss before income taxes and reorganization
items  totaling  approximately  $9.3  million.  Without  the  effect  of  these
charges, net loss before income taxes and  reorganization items would have been
($1.9  million) in the second quarter of the  prior  year.   The remaining $1.8
million income improvement in the  second  quarter of 1998 compared to the same
period  of  the prior  year  was due primarily to a significant increase in the
gross margin percent, which  was partially  offset  by  an increase in selling,
general and administrative expenses as a percentage of net sales.  See "Results
of Operations" for a further discussion of the increases  in these percentages.
Net loss (after  income  taxes  and  reorganization items) for the three months
ended  February  28,  1998  and  February  28,   1997   were   ($505,000)   and
($14,391,000),  respectively.   The  Company  incurred  $371,000  in the second
quarter  of  fiscal 1998 for reorganization expenses related to the Chapter  11
Bankruptcy proceedings,  and  this amount included a $200,000 write down in the
book value of a closed store in  the  process  of being sold.  Net loss for the
three months ended February 28, 1997 included a charge for the establishment of
a deferred tax valuation allowance that resulted  in  an  income tax expense of
approximately $3.2 million.

      Net loss before income taxes and reorganization items  for the six months
ended  February  28,  1998  and  February 28, 1997 were ($944,000)  and  ($12.5
million),  respectively.   Without the  effect  of  the  non-recurring  charges
discussed above, net loss before  income  taxes  and reorganization items would
have been ($3.2 million) for the six months ended  February 28, 1997.  The $2.3
million reduction in this loss in the first six months  of fiscal 1998 compared
to  the  same   period  of  the prior year was due primarily to  a  significant
increase in the gross margin  percentage,  which  was  partially  offset  by an
increase  in  selling, general and administrative expenses and interest expense
as a percentage  of  net  sales.   See  "Results  of  Operations" for a further
discussion of the increases in these percentages.  Net loss (after income taxes
and  reorganization  items)  for  the six months ended February  28,  1998  and
February 28, 1997 were ($1.5 million)  and  ($15.2 million), respectively.  The
Company incurred $526,000 in the first half of  fiscal  1998 for reorganization
expenses  related  to the Chapter 11 Bankruptcy proceedings,  and  this  amount
included the $200,000  write down in the book value of a closed store discussed
above.  Net loss for the  six  months ended February 28, 1997 included a charge
for the establishment of a deferred tax valuation allowance that resulted in an
income tax expense of approximately $2.7 million.

      Following the filing of its  Chapter  11  petition  on  June 4, 1997, the
Company closed nine stores and one distribution center in July  1997.   It also
had  previously  closed  two stores in January 1997.  The Shreveport, Louisiana
warehouse was closed in October  1997, and the inventory was moved to a smaller
leased warehouse that is adjacent  to the Company's remaining warehouse located
in Harahan (greater New Orleans), Louisiana.

      Campo has implemented a number  of changes to reduce its variable expense
structure in line with declining sales  revenues.   The  Company  has  examined
closely  its  operations  at  all  levels to identify opportunities for expense
reduction and has streamlined its corporate structure through significant staff
reductions  in  administrative  positions.   In  order  to  reduce  advertising
expenditures, the Company has reduced  the number of pages and frequency of its
advertising tabloids.  Campo has outsourced  functions that can be handled by a
third  party  more  efficiently,  such as facilities  management  and  extended
warranty claims administration.

      During the first six months of  fiscal 1998, the Company's new management
team implemented a number of cost reduction  measures  and  changes that should
result  in  significant  savings  for  the  Company in the future.   The  sales
associate commission program and the extended  warranty commission program were
changed and reduced to be consistent with the commission  plans  offered by the
Company's  competitors.   The Shreveport distribution center was closed,  store
payrolls  were put under tighter  control  and  corporate  office  payroll  was
reduced further  through  additional  position  eliminations.  Beginning in the
third  quarter  of  fiscal  1998,  the  Company  initiated   a  total  customer
satisfaction guarantee strategy that includes a number of programs  designed to
improve the Company's image with its customers and increase sales.

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:

<TABLE>
<CAPTION>
                                      Three Months ended February 28,        Six Months ended February 28,
                                            
                                        1998                  1997               1998                1997
                                      ----------           ----------         ---------           ---------
<S>                                   <C>                  <C>                <C>                 <C>
Net sales..........................     100.0%               100.0%              100.0%              100.0%
Cost of sales......................      77.4                 85.1                76.9                83.0
                                      ----------           ----------         ---------           ---------
Gross profit.......................      22.6                 14.9                23.1                17.0
Selling, general and administrative 
  expense..........................      22.7                 28.5                23.7                25.0
                                      ----------           ----------         ---------           ---------
Operating loss.....................      (0.1)               (13.6)               (0.6)               (8.0)
Interest expense...................      (0.8)                (0.7)               (1.1)               (0.7)
Interest income....................       0.0                  0.1                (0.0)                0.0
Other income (expense).............       0.6                 (0.1)                0.5                (0.0)
                                      ----------           ----------         ---------           ---------
                                         (0.2)                (0.7)               (0.6)               (0.7)
                                      ----------           ----------         ---------           ---------
Loss before income taxes and     
     reorganization items..........      (0.3)               (14.3)               (1.2)               (8.7)
Expense from reorganization items..      (0.8)                ----                (0.6)
Income tax expense.................       ----                 4.1                ----                 1.9
                                      ----------           ----------         ---------           ---------
Net loss...........................      (1.1)%              (18.4)%              (1.8)%             (10.6)%
                                      ==========           ==========         =========           =========

</TABLE>


THREE MONTHS ENDED FEBRUARY 28, 1998 AS COMPARED TO
THREE MONTHS ENDED FEBRUARY 28, 1997

      Net sales for the three months ended February 28, 1998 decreased 43.8% to
$44.0  million  compared  to  $78.3  million  for  the  same  period  in  1997.
Comparable  retail  store  sales  for  the three months ended February 28, 1998
decreased by 23.1%.  The decline in sales  reflects  the  combined  impact of a
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.

      Extended  warranty  revenue  recognized  under  the  straight-line method
(applicable to those extended warranty contracts sold prior  to August 1, 1995)
was  $904,000  and $1.5 million for the quarters ended February  28,  1998  and
1997, respectively.   Extended  warranty  expenses  for these same periods were
$417,000 and $886,000, respectively, before any allocation  of  other  selling,
general  and  administrative expenses.   Since August 1, 1995, the Company  has
sold to an unaffiliated  third  party  all  extended warranty service contracts
sold by the Company to customers on or after  such  date.   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 February 28,
1998 and 1997 was $1.9 million and $2.3  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  February 28, 1998 was $9.9
million or 22.6% of net sales as compared to $11.7 million,  or  14.9%  of  net
sales  for  the comparable period in the prior year.  During the second quarter
of 1997, the  Company recorded certain non-recurring charges that resulted in a
reduction in gross margin of approximately $2.1 million.  Without the effect of
these charges,  the gross margin percentage would have been 17.6% of net sales.
The remaining increase  in  the  gross  profit percentage of 5.0% was caused by
several factors.  The raw gross margin percentage  (before  rebates,  discounts
and  inventory shrinkage) increased by 1.3% due primarily to the net effect  of
several  factors.   There  was  a  shift  in product mix sold from lower margin
computers to higher margin major appliances, the Company added lounge chairs, a
new high margin category added to the stores' home theater presentations, and a
negative inventory account adjustment was recorded  in  the  prior year.  These
positive margin effects were partially offset by a decline in  the gross margin
percentage earned on the TV/Video product category caused by competitive retail
pricing.   Vendor  rebates  and  co-operative  funds  increased  by 1.4%  as  a
percentage of net sales due to extensive efforts by the Company to  pursue  and
collect  these  funds.  The gross margin dollars earned as a result of warranty
sales and deferred  warranty income discussed above resulted in a 1.7% increase
in the overall gross  margin  percentage.   Reduced  credit card promotions and
expense resulted in a .4% increase in the overall gross margin percentage.  The
remaining .2% net increase in the gross margin percentage  was due primarily to
improved margin on car stereo installations and a reduction in inventory write-
offs of returned and damaged goods.

      Selling, general and administrative expenses were $10.0  million or 22.7%
of net sales for the three months ended February 28, 1998 as compared  to $22.3
million,  or  28.5%  of  net sales for the comparable period in the prior year.
During the second quarter  of  1997, the Company recorded certain non-recurring
charges in selling, general and  administrative expenses totaling approximately
$6.9 million.  Without the effect  of  these charges, these expenses would have
been approximately $15.4 million or 19.7%  of  net sales.  The 3.0% increase in
selling, general and administrative expenses as  a  percentage of net sales was
caused  by  the  net effect of several items.  As a percentage  of  net  sales,
advertising costs  net  of  advertising rebates increased by 1.7%, depreciation
expense increased by .4%, credit  card  income  declined  by .6%, and all other
selling, general and administrative expenses increased by .3%.

      Interest expense decreased by approximately $163,000  in the three months
ended  February  28,  1998  compared  to  the  same  period of the prior  year.
Interest expense is net of discount income received from  floor  plan  lenders,
who  pass along certain of the vendor discounts on floor plan purchases to  the
Company.   Interest  expense decreased in the second quarter of fiscal 1998 due
to the net effect of a  $524,000  decrease in gross interest expense, which was
partially offset by a $361,000 decrease  in discount income received from floor
plan lenders.  The decrease in gross interest  expense was due to the effect of
principal payments made on long term debt prior  to  the Bankruptcy filing, and
the decrease in discount income was due to the reduced  number  of  stores  and
related volume of financed inventory purchases.  Other income, net increased by
approximately  $363,000  due  primarily  to  a  gain on sale of fixed assets of
$35,000 realized in the second quarter of fiscal  1998  compared  to  a loss on
sale  of an investment in marketable securities of $306,000 in the same  period
of fiscal  1997.   The  gain resulted from sales of miscellaneous equipment and
fixtures.

      Reorganization expenses  totaled  approximately  $371,000  for the second
quarter of fiscal 1998 and included a $200,000 write down in the book  value of
a  closed  store  being  sold and $171,000 in legal and other fees and expenses
directly related to the Chapter  11  proceedings.   The Company currently has a
signed agreement to sell a closed store at a price which  is $200,000 less than
book value, and the sale is expected to close in April 1998.

      The Company's effective income tax rate was 0% and (28.4)% for  the three
months  ended  February 28, 1998 and 1997, respectively.  These  effective  tax
rates are due to a valuation allowance recorded by the Company 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.

SIX MONTHS ENDED FEBRUARY 28, 1998 AS COMPARED TO
SIX MONTHS ENDED FEBRUARY 28, 1997

      Net sales for the six  months  ended February 28, 1998 decreased 43.1% to
$81.9  million  compared  to  $144.1 million  for  the  same  period  in  1997.
Comparable retail store sales for  the  six  months  ended  February  28,  1998
decreased  by  23.0%.   The  decline in sales reflects the combined impact of a
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.

      Extended  warranty  revenue  recognized  under  the  straight-line method
(applicable to those extended warranty contracts sold prior  to August 1, 1995)
was  $1.9 million and $3.2 million for the six months ended February  28,  1998
and 1997, respectively.  Extended warranty expenses for these same periods were
$1.0 million  and  $2.0  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 six months ended February
28,  1998 and 1997 was $3.5 million  and  $4.2  million,  respectively.   As  a
percentage  of  total  net  sales, net revenue from extended warranty contracts
sold to the third party for the six months ended February 28, 1998 and 1997 was
4.3% and 2.9%, respectively.  The increase in this percentage was due to higher
sales volumes, an increase in  retail  pricing  and  extended warranty products
offered and a change in the warranty sales commission structure and amounts.

      Gross profit for the six months ended February 28, 1998 was $18.9 million
or 23.1% of net sales as compared to $24.6 million, or  17.0%  of net sales for
the  comparable period in the prior year.  During the second quarter  of  1997,
the Company recorded certain non-recurring charges that resulted in a reduction
in gross  margin  of  approximately  $2.1 million.  Without the effect of these
charges, the overall gross margin percentage would have been 18.5% of net sales
in the prior year, and the increase in  the  overall  gross  margin  percentage
would  be  4.6% of net sales.  The raw gross margin percentage (before rebates,
discounts and  inventory  shrinkage) increased by 1.1% due primarily to the net
effect of several factors.   There  was  a shift in product mix sold from lower
margin computers to higher margin major appliances,  the  Company  added lounge
chairs,  a  new  high  margin  category  added  to  the  stores'  home  theater
presentations,  and  a  negative  inventory  account adjustment was recorded in
the  prior  year.   These  positive  margin  effects were partially offset by a
decline in the gross margin percentage earned  on the TV/Video product category
caused by competitive retail pricing.  Vendor rebates  and  co-operative  funds
increased by 1.2% as a percentage of net sales due to extensive efforts by  the
Company to pursue and collect these funds.  Inventory shrinkage as a percentage
of  net  sales  was .6% during the first six months of fiscal 1998 compared .8%
during the same period of the prior year (excluding the non-recurring charges),
a decrease of .2%  of  net  sales.   This  was  caused  by improved control and
monitoring of inventory in the warehouse and stores.  The  gross margin dollars
earned  as  a  result of warranty sales and deferred warranty income  discussed
above resulted in  a 1.8% increase in the overall gross margin percentage.  The
remaining .3% net increase  in the gross margin percentage was due primarily to
improved margin on car stereo installations and a reduction in inventory write-
offs of returned and damaged goods.

      Selling, general and administrative  expenses were $19.4 million or 23.7%
of net sales for the six months ended February  28,  1998  as compared to $36.1
million,  or 25.0% of net sales for the comparable period in  the  prior  year.
During the  second  quarter of 1997, the Company recorded certain non-recurring
charges in selling, general  and administrative expenses totaling approximately
$6.9 million.  Without the effect  of  these charges, these expenses would have
been approximately $29.2 million or 20.3%  of  net sales.  The 3.4% increase in
selling, general and administrative expenses as  a  percentage of net sales was
caused  by  the  net effect of several items.  As a percentage  of  net  sales,
advertising costs  net  of  advertising rebates increased by 1.5%, depreciation
expense increased by .5%, credit  card  income declined by .4%, payroll expense
increased by .5%, and all other selling,  general  and  administrative expenses
increased by .5%.

      Other income, net increased by approximately $484,000  due primarily to a
gain on sale of fixed assets of $138,000 realized in the first  six  months  of
fiscal  1998  compared to a loss of $357,000 in the same period last year.  The
prior year amount  included a loss on sale of marketable securities of $306,000
realized in the second quarter of 1997.

      Reorganization  expenses  totaled approximately $526,000 during the first
six months of fiscal 1998 and included  a $200,000 write down in the book value
of a closed store being sold and $326,000  in legal and other fees and expenses
directly related to the Chapter 11 proceedings.

      The Company's effective income tax rate  was 0.0% and (21.5%) for the six
months ended February 28, 1998  and 1997, respectively.   These  effective  tax
rates are due to a valuation allowance recorded by the Company 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.

LIQUIDITY AND CAPITAL RESOURCES

      Historically,  the  Company's primary sources of liquidity have been from
cash from operations, revolving lines of credit, and from the Company's initial
and secondary public offerings.   Net cash provided by operating activities was
$44,000 for the six months ended February 28, 1998, as compared to cash used in
operating activities of $(2.8) million  for  the  six months ended February 28,
1997.  The small increase in cash provided by operating  activities for the six
months ended February 28, 1998 was due primarily to the net  effect  of  a $2.4
million reduction in accounts receivable, a $867,000 increase in inventories, a
$1.8 million increase in accounts payable - floor plan, a $1.6 million decrease
in  accrued  expenses  and  an $1.6 million decrease in deferred revenues.  The
reduction in accounts receivable  was  primarily  due  to  collection  of  $1.5
million  in  federal and state income tax receivables and a reduction in credit
card receivables  caused  by  the timing of the month end on August 31, 1997 (a
Sunday) versus on February 28,  1998  (a  Saturday).   There were approximately
three days' worth of credit card receivables on August 31,  1997  and two days'
worth  of  these receivables on February 28, 1998.  The increase in inventories
was due to seasonality and an improved in-stock position for computer equipment
and peripherals.   The increase in accounts payable - floor plan was due to the
increase in inventories  and  the timing of month-end discussed above.  Accrued
expenses decreased because of a  reduction  in  accrued commissions, payment of
1997 real estate taxes, and a reduction in unfinalized  sales (to be delivered)
at  month-end.   The  decrease  in  deferred  revenues  was  caused  by  normal
amortization  of deferred warranty income related to contracts  sold  prior  to
August 1, 1995.

      The Company  incurred  capital  expenditures  of  $1,392 and $1.5 million
during  the  six months ended February 28,  1998 and 1997,  respectively.   The
expenditures in  1997  were primarily in connection with new computer equipment
and software purchases and leasehold improvements funded with mostly short-term
borrowings.

      Long-term debt as of February 28, 1998 consisted of three term loans, one
with  a bank group, and the  others  with  financial  institutions.   The  loan
agreement  with  the bank group was amended on June 25, 1997 to consolidate the
note with the outstanding  balance  on the then existing line of credit, extend
the  term  of  the note to 36 months, and  change  the  interest  rate  to  9%.
Interest only payments  are  due  quarterly for the first year, with nine fixed
quarterly principal payments of $223,000  plus  accrued interest to begin after
one year.  A balloon payment is due on the remaining  balance  of  the  note at
June   27,   2000.    Outstanding   amounts  pursuant  to  this  agreement  are
collateralized by the Company's real estate.  The outstanding principal balance
and applicable interest rate on this  loan  as  of February 28, 1998 were $18.4
million and 9%, respectively.  On January 1, 1998, additional notes were issued
to the bank group  covering legal fees in the total amount of $191,000.   These
notes call for monthly payments of principal and  interest  of $2,500 per month
from January 1, 1998 through June 1, 1998, $5,000 per month from  July  1, 1998
through June 1, 2000, and a balloon payment on June 27, 2000.   The outstanding
principal balance and applicable interest rate on these additional notes  as of
February 28, 1998 were $189,000 and 9.5% respectively.

      The term loan with the banks contains certain reporting requirements  and
restrictive  covenants  which  require  the Company to maintain certain minimum
annual  earnings  levels  and working capital  levels.   This  term  loan  also
contains a cross default provision  with  all  other  debt  instruments  of the
Company  and  a provision which prohibits the Company from paying dividends  on
its common stock.   As  of  August  31, 1997, the Company was not in compliance
with certain of the covenants contained  in  the  bank  term  loan,  and was in
default  of  this  agreement  due  to these violations as well as certain cross
default provisions.  However, on December  12,  1997  the  Company obtained the
agreement of the lenders to forebear through September 1, 1998  the enforcement
of their rights and remedies under the term loan agreement contingent  upon the
approval by the Bankruptcy Court of this forbearance agreement and an agreement
requiring the payment by the Company of certain professional fees to the banks.
The  Bankruptcy Court has approved these agreements.  The forbearance agreement
also provides  that  the  lenders will forebear the enforcement of their rights
and remedies through September  1,  1998 if the Company were to violate certain
financial covenants relating to minimum  annual  earnings  and  working capital
levels during that period, which the Company does not expect to comply  with in
the  upcoming  fiscal  year.   On  January  12,  1998, the Company obtained the
agreement of the lenders to extend the forbearance of their rights and remedies
related to the prior defaults discussed above and the potential future defaults
of certain financial covenants through December 1, 1998.

      Subsequent to February 28, 1998, due to a temporary  cash  shortfall, the
Company  defaulted  on  certain of its normal daily payments to the four  floor
plan lenders.  These required  payments  were  caught up and paid within one to
two business days of the original due date. Because of cross default provisions
in the term loan with the banks, these late payments to floor plan lenders have
created a default  under  the  term loan.  Because of the legal and other costs
associated with obtaining further forbearance agreements or waivers from either
the banks or the floor plan lenders,  the Board of Directors of the Company and
Management  made  a  decision  not to pursue  further  forbearance  agreements,
amendments or waivers.  This has  resulted  in  the  Company  being required by
generally  accepted  accounting  principles to reclassify the entire  principal
balance of the bank  term loan as a  current liability on the February 28, 1998
balance sheet.  It should be noted  that  the  banks and the floor plan lenders
have taken no actions against the Company to exercise their  rights  under  the
default provisions of  the  agreements  or  to  accelerate  any of the required
payments.

      The  principal  balance  of the first of the other term  loans  was  $3.7
million as of February 28, 1998 and this note is carried as a liability subject
to compromise. The secured and unsecured  portions  of  this debt are yet to be
determined,  and this debt does not accrue interest while  the  Company  is  in
Chapter 11.  On  March 5, 1998, the Company agreed to pay the lender $5,000 per
month effective February  1,  1998  to  compensate the lender for the estimated
depreciation in the value of the equipment and fixtures which secure this loan,
and this agreement was approved by the Bankruptcy  Court.   This  agreement  is
subject to change in a future Bankruptcy Court hearing to determine the secured
and  unsecured  portions of this debt. The furniture, fixtures and equipment at
various locations  leased  by  the  Company  collateralize  outstanding amounts
pursuant to this agreement.  The second of the other term loans was $245,000 as
of February 28, 1998, and accrues interest payable monthly at an annual rate of
9%.  The note is divided equally between two instruments, one  with  a maturity
date  of September 1, 1999, and the second with a maturity date of December  1,
1999.  The note is secured by certain computer software.

      As  of  February  28,  1998,  the  Company also uses several "floor plan"
finance  companies to finance the majority  of  its  inventory  purchases.   In
addition,  the  Company  finances some of its inventory purchases through open-
account arrangements with  various  vendors.   The  Company  has  an  aggregate
borrowing  limit  with the floor plan finance companies of approximately  $43.5
million  with outstanding  borrowings  being  collateralized  with  merchandise
inventory  and vendor receivables.  Payment terms under these agreements are on
a "pay as sold" basis, with the Company being required to pay down indebtedness
on a daily basis  as  the  financed  goods  are  sold.   Each of the floor plan
financing  agreements  contains  cross  default  clauses  with all  other  debt
instruments  of  the  Company.  As of August 31, 1997 the Company  was  not  in
compliance with several  covenants  contained  in the floor plan agreements and
was also in default of those floor plan agreements  due  to its failure to make
certain payments required by the agreements relating to inventory shortages and
obsolescence identified by the Company.  The Company obtained  waivers for some
of these violations and as of December 11, 1997 had obtained the  agreement  of
each  of  the floor plan lenders to forebear their rights and remedies pursuant
to the floor  plan  agreements  subject  to:   (i)  the  Company's  payment  of
approximately $1,654,000 in principal, plus interest at the prime rate plus 3%,
to  the floor plan lenders at various dates through December 15, 1998, and (ii)
the approval  of  these  forbearance  agreements  by the Bankruptcy Court.  The
Bankruptcy  Court  subsequently  approved  these  forbearance  agreements.   As
previously discussed, subsequent to February 28, 1998,  the  Company  failed to
make  certain  of  its  required  payments  to  its  floor plan lenders thereby
resulting in a default under the floor plan agreements.  Because  of  the legal
and other costs  associated  with  obtaining  further forbearance agreements or
waivers, the Board of Directors and  Management  of the Company made a decision
not to pursue such forbearance agreements or waivers.  This had no effect  upon
the classification of the Accounts payable - floor plan,  as  it is oridinarily
classified as a current liability.

      The Company has also obtained debtor in possession ("DIP") financing from
two of its floor plan lenders in the form of a $3 million  line of credit which
had an outstanding balance of $1.5 million at February 28,   1998.  The line of
credit  matures  at  December  31,  1998 and bears interest at prime  plus  3%,
payable monthly, with one principal payment  of  $1.5  million due December 31,
1998.   The  Company paid a required $1.5 million payment  in  December,  1997,
which was partially  funded  by  receipt  of  a $1.1 million federal income tax
refund that had been previously assigned to these  lenders.  The primary use of
the line of credit is 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, as well as
by a broad lien on all of  the  Company's  other  assets.   The  line of credit
financing agreement contains certain covenants, a cross default clause with all
other  debt  instruments  of  the  Company,  and it prohibits the Company  from
spending more than $50,000 per year on capital  expenditures  without approval.
As of August 31, 1997, the Company was not in compliance with certain covenants
contained  in  this  agreement,  but  the  Company has obtained the forbearance
agreements  discussed  above.  However, as  previously  discussed, the  default
under  the  floor plan agreements and the existence of a cross default provison
in the line of credit has created a default under the line of credit. The Board
of Directors and Management of the Company have made a decision not  to  pursue
further forbearance agreements  or  waivers.   This  has had no effect upon the
classification  of  the  outstanding  balance  on  the line of credit, as it is
ordinarily classified as a current liability.

      Net cash used in financing activities  was  $(1.5)  million  in  the  six
months  ended February 28, 1998, compared to $1.0 million provided by financing
activities  in the six months ended February 28, 1997.  The primary use of cash
in the 1998 period  consisted  of principal payments on the DIP line of credit.
The source of cash in the 1997 period resulted from borrowings under short-term
borrowing arrangements.

      Since the Company filed for Chapter 11 reorganization, it has closed nine
stores  and  two warehouses, has cut  corporate  overhead  expenses  and  store
operating expenses,  and  has  initiated several strategies designed to improve
operating performance (as more fully  explained  in Item 1 of its Annual Report
on  Form  10-K  for  fiscal  1997).  Based upon projections  of  its  operating
results, the Company believes  that  its  existing  funds,  its  operating cash
flows, the available  DIP  line  of credit discussed in Note 3 to the financial
statements, and the vendor and inventory  financing  arrangements discussed  in
Note 3 are sufficient on an overall basis to satisfy expected cash requirements
in fiscal 1998.   However,  there  may  be  short  periods  of time (one or two
business day time periods)  where  cash needs temporarily  exceed availability,
and  this  may  result  in a few late required payments to floor plan and other
vendors. This would result in an additional default which would not be  covered
by  the existing forbearance agreements.  Subsequent  to  February  28, 1998, a
default of this  nature  did occur as described  in  Note 3  to  the  financial
statements.  Also, there is no assurance that the Company's projected operating
results will be achieved  during  fiscal 1998.  The Company will likely require
additional  working capital financing  in fiscal  1999,  and  these  needs  are
currently being discussed with the debtor in possession ("DIP") lenders.

      On December 16, 1997 the Company was notified by the Nasdaq Stock Market,
Inc. ("Nasdaq")  that the Company does not meet all of the listing requirements
for continued listing  on  the  Nasdaq National Market based upon its financial
statements at August 31, 1997, and  that  Nasdaq was commencing a review of the
Company's eligibility for continued listing.   On January 12, 1998, the Company
was notified by Nasdaq that its Common Stock would  be  delisted on January 19,
1998  unless  the  Company pursued Nasdaq's procedural remedies.   The  Company
requested a written submission hearing before the Nasdaq Listing Qualifications
Panel, and this hearing took place on February 19, 1998.  On March 9, 1998, the
Company was notified  that  the  Company's  Common Stock would be delisted from
Nasdaq effective immediately with the close of  business on March 9, 1998.  The
Company's Common Stock is now traded on the Over the Counter Bulletin Board.

IMPACT OF INFLATION

      In management's opinion, inflation has not  had  a material impact on the
Company's  financial results for the six months ended February  28,   1998  and
1997. 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.

FORWARD-LOOKING STATEMENTS

      This  report  contains  forward-looking  statements  (as  defined  in the
Private  Securities  Litigation  Reform Act of 1995) representing the Company's
current expectations, beliefs, estimates or intentions concerning the Company's
future performance and operating results,  its  products, services, markets and
industry, and/or future events relating to or effecting  the  Company  and  its
business  and  operations.   When  used  in  this report, the words "believes,"
"estimates,"   "plans,"  "expects,"  "intends,"  "anticipates,"   and   similar
expressions as they  relate  to  the  Company are intended to identify forward-
looking  statements.   Although  the Company  believes  that  the  expectations
reflected in such forward-looking  statements  are  reasonable,  it can give no
assurance  that  such expectations will prove to have been correct.   Important
factors that could  cause  actual  results  or  achievements  of the Company to
differ  materially  from  those  indicated  by  the  forward-looking statements
include, without limitation, the effectiveness of the  Company's  business  and
marketing  strategies,  the  product  mix sold by the Company, customer demand,
availability of existing and new merchandise  from,  and  the establishment and
maintenance  of relationships with, suppliers, price competition  for  products
and services sold by the Company, management of expenses, gross profit margins,
availability and  terms  of financing to refinance or repay existing financings
or to fund capital needs,  the  continued  and anticipated growth of the retail
home entertainment and consumer electronics  industry,  a  change  in  interest
rates,  exchange  rate  fluctuations, the seasonality of the Company's business
and the other risks and factors  detailed  in  this report and in the Company's
other  filings  with  the SEC.  These risks and uncertainties  are  beyond  the
ability of the Company  to  control.  In many cases, the Company cannot predict
all of the risks and uncertainties  that  could  cause actual results to differ
materially  from  those  indicated  by  the  forward-looking  statements.   All
forward-looking  statements in this report are  expressly  qualified  in  their
entirety by the cautionary statements in this paragraph.



<PAGE>
                          PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

      There have been  no  material  developments during the three months ended
February 28, 1998.

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)
         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.
         No reports  on  Form  8-K  were  filed  during  the three months ended
            February 28, 1998.



<PAGE>
               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.



APRIL 14, 1998  /S/ WILLIAM E. WULFERS
                --------------------------------------
                  William E. Wulfers
                  President and Chief Executive Officer




                /S/ MICHAEL G. WARE
                -------------------------------------------------
                  Michael G. Ware
                  Senior Vice President and Chief Financial Officer