<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

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

For the quarterly period ended September 29, 2001
                               ------------------
                                       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   1-8884
                        -------

                              BUSH INDUSTRIES, INC.
                              ---------------------
             (Exact name of registrant as specified in its charter)

           Delaware                                        16-0837346
-------------------------------                        -------------------
(State or other jurisdiction of                         (I.R.S. Employer
 incorporation of organization)                        Identification No.)

                                 One Mason Drive
                                  P.O. Box 460
                         Jamestown, New York 14702-0460
           ----------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (716) 665-2000
           ----------------------------------------------------------
              (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 ___
    ---

Number of shares of Common Stock outstanding as of September 29, 2001:
10,394,629 shares of Class A Common Stock and 3,395,365 shares of Class B Common
Stock.

<PAGE>

                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      -------------------------------------

<TABLE>
<CAPTION>
                                                              SEPTEMBER 29,      DECEMBER 30,
                                                                       2001              2000
                                                              -------------      ------------
                                                                (Unaudited)
                                                                        (In thousands)
<S>                                                           <C>                <C>
ASSETS
------
Current Assets:
   Cash                                                           $   1,946         $   1,225
   Accounts receivable                                               19,208            38,110
   Inventories                                                       68,781            74,838
   Prepaid expenses and other current assets                          9,047             9,389
                                                                  ---------         ---------
        Total Current Assets                                         98,982           123,562

Property, Plant and Equipment, Net                                  210,889           213,619

Other Assets                                                         28,820            29,370
                                                                  ---------         ---------
TOTAL ASSETS                                                      $ 338,691         $ 366,551
                                                                  =========         =========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
   Accounts payable                                               $  11,822         $  25,860
   Income taxes                                                           0             2,705
   Other accrued liabilities                                         21,563            38,329
   Current portion of long-term debt                                    444               433
                                                                  ---------         ---------
        Total Current Liabilities                                    33,829            67,327

Deferred Income Taxes                                                11,799            10,664
Other Long-term Liabilities                                           6,969             6,474
Long-term Debt                                                      139,203           140,376
                                                                  ---------         ---------
        Total Liabilities                                           191,800           224,841
                                                                  ---------         ---------
Stockholders' Equity:
   Common Stock:
        Class A, $.10 par, 20,000,000 shares authorized,
        10,768,253 and 10,631,941 shares issued                       1,077             1,063

        Class B, $.10 par, 6,000,000 shares authorized,
        3,395,365 shares issued                                         340               340

   Paid-in capital                                                   22,916            21,585
   Retained earnings                                                129,778           125,648
   Accumulated other comprehensive income                             2,015             2,197
                                                                  ---------         ---------
                                                                    156,126           150,833

Less treasury stock, 373,624 and 365,806 Class A shares              (5,609)           (5,497)
Less notes receivable related to common stock                        (3,626)           (3,626)
                                                                  ---------         ---------
        Total Stockholders' Equity                                  146,891           141,710
                                                                  ---------         ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        $ 338,691         $ 366,551
                                                                  =========         =========
</TABLE>

See notes to condensed consolidated financial statements.

                                       2

<PAGE>


                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                  ---------------------------------------------
                                   (Unaudited)


                                                      THIRTEEN WEEKS ENDED
                                                 ------------------------------
                                                 SEPTEMBER 29,    SEPTEMBER 30,
                                                          2001             2000
                                                 -------------    -------------
                                                  (In thousands, except shares
                                                        and per share data)

Net Sales                                          $    80,614      $   107,078

Costs and Expenses:

   Cost of sales                                        57,857           71,889
   Selling, general and administrative                  19,304           21,848
   Interest expense                                      1,945            3,168
                                                   -----------      -----------
                                                        79,106           96,905

Earnings Before Income Taxes                             1,508           10,173

Income Taxes                                               659            3,903
                                                   -----------      -----------

Net Earnings                                       $       849      $     6,270
                                                   ===========      ===========


Earnings per Share
   Basic                                           $      0.06      $      0.46
   Diluted                                         $      0.06      $      0.44

Weighted Average Shares Outstanding
   Basic                                            13,739,299       13,610,933
   Diluted                                          14,029,798       14,121,227


See notes to condensed consolidated financial statements.

                                       3

<PAGE>


                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                  ---------------------------------------------
                                   (Unaudited)



                                                 THIRTY-NINE WEEKS ENDED
                                             ------------------------------
                                             SEPTEMBER 29,    SEPTEMBER 30,
                                                      2001             2000
                                             -------------    -------------
                                               (In thousands, except shares
                                                    and per share data)


Net Sales                                      $   260,856      $   334,112

Costs and Expenses:

   Cost of sales                                   183,839          229,130
   Selling, general and administrative              59,532           73,698
   Interest expense                                  6,880            8,706
                                               -----------      -----------
                                                   250,251          311,534

Earnings Before Income Taxes                        10,605           22,578

Income Taxes                                         4,422            8,897
                                               -----------      -----------

Net Earnings                                   $     6,183      $    13,681
                                               ===========      ===========


Earnings per Share
   Basic                                       $      0.45      $      1.00
   Diluted                                     $      0.44      $      0.96

Weighted Average Shares Outstanding
   Basic                                        13,699,444       13,699,303
   Diluted                                      14,137,026       14,276,919


See notes to condensed consolidated financial statements.

                                       4

<PAGE>


                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -----------------------------------------------
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      THIRTY-NINE WEEKS ENDED
                                                                   ----------------------------
                                                                   SEPTEMBER 29,  SEPTEMBER 30,
                                                                            2001           2000
                                                                   -------------  -------------
                                                                           (In thousands)
<S>                                                                <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------
   Net earnings                                                         $  6,183       $ 13,681
   Adjustment to reconcile:
      Depreciation and amortization                                       14,454         13,288
      Deferred income taxes                                                  949          1,174
   Change in assets and liabilities affecting cash flows:
      Accounts receivable                                                 19,037          3,426
      Inventories                                                          6,491        (27,197)
      Prepaid expenses and other current assets                              541           (546)
      Accounts payable                                                   (14,533)           979
      Income taxes                                                        (2,519)           568
      Other accrued liabilities                                          (16,943)        (5,445)
                                                                       ---------       --------
         Net cash provided by (used in) operating activities              13,660            (72)
                                                                       ---------       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
   Capital expenditures                                                   (8,598)       (20,898)
   Increase in other assets                                                 (560)          (582)
                                                                       ---------       --------
      Net cash used in investing activities                               (9,158)       (21,480)
                                                                       ---------       --------
CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
   Repayment of long-term debt                                            (2,844)          (389)
   Proceeds from long-term debt                                                0         26,094
   Purchase of Class A stock for treasury                                      0         (4,167)
   Exercise of stock options by employees                                  1,160            149
   Dividends paid                                                         (2,053)        (2,062)
                                                                        --------       --------
      Net cash (used in) provided by financing activities                 (3,737)        19,625
                                                                        --------       --------

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                      (44)          (169)
                                                                        --------       --------

NET INCREASE (DECREASE) IN CASH                                              721         (2,096)

CASH AT BEGINNING OF PERIOD                                                1,225          2,704
                                                                        --------       --------

CASH AT END OF PERIOD                                                   $  1,946       $    608
                                                                        ========       ========
</TABLE>

See notes to condensed consolidated financial statements.

                                       5

<PAGE>


                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              ----------------------------------------------------
                   Thirty-nine weeks ended September 29, 2001
                                   (Unaudited)


     1.  The accounting policies used in preparing these statements are the same
         as those used in preparing the Company's consolidated financial
         statements for the year ended December 30, 2000. These condensed
         consolidated financial statements should be read in conjunction with
         the consolidated financial statements and notes thereto included in the
         Company's annual report to stockholders for the fiscal year ended
         December 30, 2000.

         The foregoing financial information reflects all adjustments which are,
         in the opinion of management, of a normal recurring nature and
         necessary for a fair presentation. The interim results are not
         necessarily indicative of the results which may be expected for a full
         year.

     2.  The following tables set forth total comprehensive income for the 13
         week and 39 week periods indicated below.



<TABLE>
<CAPTION>
                                                                THIRTEEN WEEKS ENDED
                                                          ------------------------------
                                                          SEPTEMBER 29,    SEPTEMBER 30,
                                                                   2001             2000
                                                          -------------    -------------
                                                                      (In thousands)
         <S>                                              <C>              <C>
         Net income                                             $   849          $ 6,270
         Accumulated other comprehensive loss                       (23)            (122)
                                                                -------          -------
         Total comprehensive income                             $   826          $ 6,148
                                                                =======          =======
</TABLE>


<TABLE>
<CAPTION>
                                                              THIRTY-NINE WEEKS ENDED
                                                          ------------------------------
                                                          SEPTEMBER 29,    SEPTEMBER 30,
                                                                   2001             2000
                                                          -------------    -------------
                                                                   (In thousands)
         <S>                                              <C>              <C>
         Net income                                             $ 6,183          $13,681
         Accumulated other comprehensive (loss) income             (182)             337
                                                                -------          -------
         Total comprehensive income                             $ 6,001          $14,018
                                                                =======          =======
</TABLE>

                                        6

<PAGE>

     3.  Inventories consist of the following:

                                              SEPTEMBER 29,       DECEMBER 30,
                                                       2001               2000
                                              -------------       ------------
                                                        (In thousands)
         Raw material                               $14,530            $13,421
         Work in progress                             5,873              5,452
         Finished goods                              48,378             55,965
                                                    -------            -------
                                                    $68,781            $74,838
                                                    =======            =======

     4.  Segment Reporting

         The Company operates and manages its business in three reportable
         segments; Bush Furniture - North America, Bush Furniture - Europe and
         Bush Technologies. The Bush Furniture segments involve the design,
         manufacture and sale of RTA (ready to assemble) and set-up furniture
         for the home and office. Bush Furniture - North America services our
         customers in North America and Bush Furniture - Europe services our
         customers in Europe. Bush Technologies provides finishing, design, and
         decorating services utilizing "surface technologies" in diverse
         applications. Based upon analysis performed in the second quarter 2001,
         Bush Furniture - Europe was determined to be a separate reportable
         segment. Prior period segment information has been restated to reflect
         this newly reported segment.

         The Company evaluates performance of the segments based on earnings
         before income taxes. The accounting policies of the segments are the
         same as those described and referenced in Note 1.

         The following tables set forth reportable segment data for the periods
         indicated below.

                                                      THIRTEEN WEEKS ENDED
                                                  ------------------------------
                                                  SEPTEMBER 29,    SEPTEMBER 30,
                                                           2001             2000
                                                  -------------    -------------
                                                            (In thousands)
         Net Sales from External Customers:
            Bush Furniture - North America              $68,421         $ 87,967
            Bush Furniture - Europe                       9,190            8,749
            Bush Technologies                             3,003           10,362
                                                        -------         --------
            Consolidated Net Sales                      $80,614         $107,078
                                                        =======         ========

         Inter-segment Sales
            Bush Furniture - North America              $     0         $      0
            Bush Furniture - Europe                         705            6,323
            Bush Technologies                                12               32
                                                        -------         --------
            Total                                       $   717         $  6,355
                                                        =======         ========

                                       7

<PAGE>

<TABLE>
<CAPTION>
                                                              THIRTEEN WEEKS ENDED
                                                        ----------------------------------
                                                        SEPTEMBER 29,        SEPTEMBER 30,
                                                                 2001                 2000
                                                        -------------        -------------
                                                                  (In thousands)
         <S>                                            <C>                  <C>
         Earnings (Loss) Before Income Taxes:
            Bush Furniture - North America                     $3,052              $ 6,689
            Bush Furniture - Europe                            (1,620)                 496
            Bush Technologies                                      76                2,988
                                                               ------              -------
            Consolidated Earnings Before Income Taxes          $1,508              $10,173
                                                               ======              =======
</TABLE>


<TABLE>
<CAPTION>
                                                            THIRTY-NINE  WEEKS ENDED
                                                        --------------------------------
                                                        SEPTEMBER 29,      SEPTEMBER 30,
                                                                 2001               2000
                                                        -------------      -------------
                                                                 (In thousands)
         <S>                                            <C>                <C>
         Net Sales from External Customers:
            Bush Furniture - North America                   $199,043           $275,132
            Bush Furniture - Europe                            41,047             39,903
            Bush Technologies                                  20,766             19,077
                                                             --------           --------
            Consolidated Net Sales                           $260,856           $334,112
                                                             ========           ========

         Inter-segment Sales
            Bush Furniture - North America                   $      0           $      0
            Bush Furniture - Europe                             3,085             10,823
            Bush Technologies                                      18                147
                                                             --------           --------
            Total                                            $  3,103           $ 10,970
                                                             ========            =======

         Earnings (Loss) Before Income Taxes:
            Bush Furniture - North America                   $  5,130           $ 18,616
            Bush Furniture - Europe                            (1,341)              (669)
            Bush Technologies                                   6,816              4,631
                                                             --------           --------
            Consolidated Earnings Before Income Taxes        $ 10,605           $ 22,578
                                                             ========           ========
</TABLE>


<TABLE>
<CAPTION>
                                                         SEPTEMBER 29,      DECEMBER 30,
                                                                  2001              2000
                                                         -------------      ------------
                                                                  (In thousands)
        <S>                                              <C>                <C>
        Total Assets:
           Bush Furniture - North America                     $262,142          $291,229
           Bush Furniture - Europe                              56,250            52,736
           Bush Technologies                                    20,299            22,586
                                                              --------          --------
           Consolidated Total Assets                          $338,691          $366,551
                                                              ========          ========
</TABLE>

                                       8

<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-------  -----------------------------------------------------------------------
         OF OPERATIONS
         -------------

     Except for the historical information contained herein, the matters
discussed in this Report on Form 10-Q are forward-looking statements, and are
identified by words such as "may", "will", "should", "expect", "scheduled",
"plan", "intend", "contemplate", "believe", "anticipate", or the negative of
such words or other similar words. Forward looking statements involve risks and
uncertainties, including, but not limited to, economic, competitive,
governmental and technological factors affecting the Company's operations,
markets, products, services and prices, and other factors discussed in the
Company's filings with the Securities and Exchange Commission.

RESULTS OF OPERATIONS:
----------------------

     Third quarter sales for the 13 week period ended September 29, 2001 were
$80,614,000 and sales for the 39 week period ended September 29, 2001 were
$260,856,000. This represents a decrease of $26,464,000, or approximately 24.7%,
compared to net sales of $107,078,000 for the 13 week period ended September 30,
2000, and a 39 week period decrease of $73,256,000, or approximately 21.9%,
compared to net sales of $334,112,000 for the 39 week period ended September 30,
2000. The sales decrease for the 13 and 39 week periods ended September 29, 2001
primarily reflect a decrease in orders from the Company's customers due the
economic slowdown. The 39 week period ended September 29, 2001 was further
impacted by the inventory rationalization programs undertaken at the office
superstores in the second quarter of fiscal year 2001.

     Consumer confidence has been badly shaken by the September 11, 2001
terrorist attacks on the U.S. and has led to increased uncertainty with regard
to consumer spending and the severity and duration of a recession. This has
resulted in reduced demand for residential and home office furniture in the
third quarter of fiscal year 2001 and it is expected to continue to impact such
demand going forward for some undeterminable period of time. It is also
anticipated that this may lead to a renewed inventory rationalization program at
one of the Company's office superstore customers.

     Cost of sales decreased $14,032,000 for the 13 week period ended September
29, 2001, compared to the 13 week period ended September 30, 2000. Cost of sales
as an approximate percentage of net sales increased by 4.7 percentage points
from 67.1% in the third quarter of 2000 to 71.8% in the third quarter of 2001.
Cost of sales decreased by $45,291,000 for the 39 week period ended September
29, 2001, compared to the 39 week period ended September 30, 2000. Cost of sales
as an approximate percentage of net sales increased by 1.9 percentage points
from 68.6% in the first 39 weeks of 2000 to 70.5% in the first 39 weeks of 2001.
The reduction in cost of sales for both the 13 and 39 week periods ended
September 29, 2001 reflect the lower sales levels as compared to the prior year.
The increase in cost of sales as a percentage of net

                                       9

<PAGE>

sales for both the 13 and 39 week periods ended September 29, 2001 primarily
reflects lower absorption of manufacturing overhead as a result of decreased
production volumes.

     Selling, general and administrative expenses decreased $2,544,000 for the
13 week period ended September 29, 2001, compared to the 13 week period ended
September 30, 2000. For the 39 week period ended September 29, 2001, selling,
general and administrative expenses decreased by $14,166,000, as compared to the
39 week period ended September 30, 2000. The decrease in selling, general and
administrative expenses was primarily the result of a reduction in various
variable selling expenses such as commissions, marketing and promotional
incentives. These reductions were a result of both the Company's lower sales
volumes and also as a result of a change in sales terms with two customers, in
which various marketing and promotional incentives were replaced with a
reduction in sales prices to the two customers. Selling, general and
administrative expenses as an approximate percentage of net sales increased by
3.5 percentage points from 20.4% in the third quarter of 2000 to 23.9% in the
third quarter of 2001 and increased by 0.7 percentage points from 22.1% in the
first 39 weeks of 2000 to 22.8% in the first 39 weeks of 2001.

     Interest expense for the 13 week period ended September 29, 2001 decreased
to $1,945,000 (or approximately 2.4% of net sales) from $3,168,000 (or
approximately 3.0% of net sales) for the 13 week period ended September 30,
2000. Interest expense for the 39 week period ended September 29, 2001 decreased
to $6,880,000 (or approximately 2.6% of net sales) from $8,706,000 (or
approximately 2.6% of net sales). The decrease in interest expense was primarily
due to decreases in the interest rates paid on the Company's revolving credit
facility.

     The consolidated effective income tax rate for the 13 and 39 week periods
ended September 29, 2001 were 43.7% and 41.7%, respectively. The tax rates for
the comparable periods in 2000 were 38.4% and 39.4%, respectively.

LIQUIDITY AND CAPITAL RESOURCES:
--------------------------------

     Working capital at third quarter-end 2001 increased by $8,918,000, as
compared to working capital at year-end 2000. Such increased working capital was
due, in part, to a decrease in other accrued liabilities, accounts payable and
income taxes, partially offset by a decrease in accounts receivable and
inventories. Total assets at third quarter-end 2001 decreased $27,860,000 over
year-end 2000 primarily as a result of a decrease in accounts receivable and
inventories. In addition, total liabilities decreased $33,041,000 at third
quarter-end 2001 as compared to year-end 2000, due mostly to a decrease in other
accrued liabilities, accounts payable and income taxes.

     The Company spent $8,598,000 on capital expenditures during the first three
quarters of 2001, which were financed primarily with cash flow from operating
activities. Capital expenditures for fiscal year 2001 are currently forecasted
to be approximately $12 million.

                                       10

<PAGE>

     The Company has a $210,000,000 revolving credit facility, initially
effective as of June 27, 1997 and as amended, with JPMorgan Chase Bank, Mellon
Bank, N.A. and other lending institutions. The credit facility provides for
revolving credit loans, swing line loans and multi-currency loans, within the
parameters described below. The loan is due June 30, 2003 with a balloon payment
of the then remaining principal and any accrued interest. The Company has
classified all of the line of credit as long-term debt, as there are no required
principal payments due within the next 12 months. At the Company's option,
borrowings may be effectuated, subject to certain conditions, on a NYBOR rate,
an eurocurrency rate for dollars, an applicable eurocurrency rate for certain
foreign currencies, a money market rate, or an alternative base rate.
Eurocurrency loans bear interest at the then current applicable LIBOR rate, plus
an applicable margin. The applicable margin, which pertains only to LIBOR and
NYBOR rate loans, varies from 0.5% to 1.00%, depending upon the Company's
ability to satisfy certain quarterly financial tests. In addition, the credit
agreement permits the Company to request the issuance of up to a maximum of
$20,000,000 in letters of credit, which issuance will be deemed part of the
$210,000,000 maximum amount of borrowing permitted under the credit facility.

     The line of credit agreement, as amended, provides for achieving certain
consolidated cash flow coverage and leverage ratios, prescribes minimum
consolidated net worth requirements, limits capital expenditures and new leases
and provides for certain other affirmative and restrictive covenants. The
Company is in compliance with all of these requirements. In addition, the credit
agreement limits the amount of cash dividends that the Company can declare, and
also imposes certain conditions with respect thereto.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS:
-----------------------------------------------

     In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
Derivative Instruments and Hedging Activity", which is effective for all fiscal
years beginning after June 15, 2000. SFAS No. 133, as amended, establishes
accounting and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts and for hedging activities.
Under SFAS No. 133, certain contracts that were not formerly considered
derivatives may now meet the definition of a derivative. The Company adopted
SFAS No. 133 effective December 31, 2000, which was the first day of fiscal year
2001. The adoption of SFAS No. 133 did not have a material impact on the
consolidated financial position, results of operations, or cash flows of the
Company.

     In September 2000, the FASB issued SFAS No. 140, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishment of Liabilities", which
replaces SFAS No. 125, "Accounting for Transfers and Servicing of Financial
Assets and Extinguishment of Liabilities". This Standard is effective for
transfers occurring after March 31, 2001, with certain disclosure requirements
effective for the year ended December 30, 2000. The adoption of this Standard
did not have a material impact on the Company's consolidated financial position,
results of operations

                                       11

<PAGE>

or cash flows.

     In July 2001, the FASB issued SFAS No. 141, "Business Combinations". SFAS
No. 141 requires the purchase method of accounting for business combination
initiated after June 30, 2001 and eliminates the pooling-of-interest method. The
Company does not believe that the adoption of SFAS No. 141 will have a material
impact on its financial statements.

     In July 2001, the FASB issued SAFS No. 142, "Goodwill and Other Intangible
Assets", which the Company expects to adopt on December 30, 2001, the first day
of fiscal year 2002. SFAS No. 142 requires, among other things, the
discontinuance of goodwill amortization by changing the accounting for goodwill
from an amortization method to an impairment-only approach. On an annual basis,
and when there is reason to suspect that their values have been diminished or
impaired, these assets must be tested for impairment, and write-downs may be
necessary. SFAS No. 142 also requires the Company to complete a transitional
goodwill impairment test six months from the date of adoption and any goodwill
impairment loss will be recognized as the cumulative effect of a change in
accounting principle. The Company is currently evaluating, but has not yet
determined, the impact of SFAS No. 142 on its financial position and results of
operation.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------

     Market risk represents the risk of loss that may impact the
consolidated financial position, results of operations or cash flows of the
Company. The Company is exposed to market risk in the areas of interest rates
and foreign currency exchange rates.

     The Company's exposure to market risk for changes in interest rates relates
primarily to the Company's revolving credit facility due to its variable LIBOR
pricing. Based on the outstanding balance of long-term debt at end of the third
quarter of fiscal year 2001, a one percentage point change in interest rates
would result in annual interest expense fluctuating approximately $1.4 million.

     The Company's exposure to foreign currency exchange risk relates primarily
to the cost of imported supplies and the cost/profitability of exported items,
the income statement and cash flow impact of converting foreign currency
denominated profit/loss into U.S. dollars and the balance sheet impact of
converting foreign currency denominated assets and liabilities into U.S.
dollars. The Company does not believe that a reasonably possible change of 10%
in any foreign currency exchange rate will materially affect the financial
position of the Company.

                                       12

<PAGE>

                           Part II. OTHER INFORMATION
                           --------------------------

ITEM 6.  EXHIBITS AND REPORTS ON 8-K
-------  ---------------------------

              (a)   Exhibits:
                    None.

              (b)   Reports on Form 8-K:
                    None.

                                       13

<PAGE>

                                   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.

                                               BUSH INDUSTRIES, INC.
                                               ---------------------
                                                    (Registrant)



Date: November 6, 2001                    By: /s/ Neil Frederick
      ----------------                        ------------------
                                                 (Signature)
                                              Neil Frederick
                                              Chief Financial Officer and
                                              Treasurer

                                       14