<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 March 30, 2002
                               --------------

                                       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 March 30, 2002: 10,385,104
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
                      -------------------------------------
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           MARCH 30,    DECEMBER 29,
                                                                2002            2001
                                                           ---------    ------------
                                                                (In thousands)
<S>                                                        <C>             <C>
ASSETS
------
Current Assets:
   Cash                                                    $   2,356       $   1,589
   Accounts receivable                                        17,721          16,872
   Inventories                                                52,737          55,297
   Prepaid expenses and other current assets                   7,155          11,491
                                                           ---------       ---------
        Total Current Assets                                  79,969          85,249

Property, Plant and Equipment, Net                           203,052         207,334

Other Assets                                                  29,152          28,594
                                                           ---------       ---------

TOTAL ASSETS                                               $ 312,173       $ 321,177
                                                           =========       =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
   Accounts payable                                        $  20,105       $  17,184
   Income taxes                                                  135              43
   Other accrued liabilities                                  23,214          24,052
   Current portion of long-term debt                             451             447
                                                           ---------       ---------
        Total Current Liabilities                             43,905          41,726
Deferred Income Taxes                                         11,459          11,123
Other Long-term Liabilities                                    7,118           7,237
Long-term Debt                                               109,125         121,118
                                                           ---------       ---------
         Total Liabilities                                   171,607         181,204
                                                           ---------       ---------

Stockholders' Equity:
   Common Stock:
        Class A, $.10 par, 20,000,000 shares authorized,
        10,776,508 and 10,768,243 shares issued                1,078           1,077
        Class B, $.10 par, 6,000,000 shares authorized,
        3,395,365 shares issued                                  340             340
Paid-in capital                                               22,999          22,916
Retained earnings                                            123,568         123,164
Accumulated other comprehensive income                         1,767           1,666
                                                           ---------       ---------
                                                             149,752         149,163
Less treasury stock, 391,404 and 388,400 Class A shares       (5,814)         (5,775)
Less notes receivable related to common stock                 (3,372)         (3,415)
                                                           ---------       ---------
        Total Stockholders' Equity                           140,566         139,973
                                                           ---------       ---------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $ 312,173       $ 321,177
                                                           =========       =========
</TABLE>

See notes to condensed consolidated financial statements.


                                       2

<PAGE>

                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

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

                                            THIRTEEN WEEKS ENDED
                                        -----------------------------
                                           MARCH 30,     MARCH 31,
                                                2002          2001
                                           ---------     ---------
                                        (In thousands, except shares
                                             and per share data)

Net Sales                                $    88,332   $   104,628
Costs and Expenses:
   Cost of sales                              63,675        72,857
   Selling, general and administrative        21,094        22,485
   Interest expense                            1,725         2,625
                                         -----------   -----------
                                              86,494        97,967

Earnings Before Income Taxes                   1,838         6,661

Income Tax Expense                               745         2,748
                                         -----------   -----------

Net Earnings                             $     1,093   $     3,913
                                         ===========   ===========

Earnings per Share:
   Basic                                 $      0.08   $      0.29
   Diluted                               $      0.08   $      0.28

Weighted Average Shares Outstanding:
   Basic                                  13,777,442    13,668,577
   Diluted                                14,080,747    14,157,526


See notes to condensed consolidated financial statements.


                                       3

<PAGE>

                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

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

<TABLE>
<CAPTION>
                                                           THIRTEEN WEEKS ENDED
                                                          ----------------------
                                                          MARCH 30,    MARCH 31,
                                                               2002         2001
                                                          ---------    ---------
                                                              (In thousands)
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------
   Net earnings                                             $  1,093    $  3,913
   Adjustment to reconcile net earnings to net cash
   provided by operating activities:
      Depreciation and amortization                            4,950       4,753
      Deferred income taxes                                      173         423
   Change in assets and liabilities affecting cash flows:
      Accounts receivable                                       (934)     14,657
      Inventories                                              2,297       8,724
      Prepaid expenses and other current assets                4,289         837
      Accounts payable                                         3,180      (9,491)
      Income taxes                                                99        (512)
      Other accrued liabilities                                 (510)     (7,784)
                                                            --------    --------
         Net cash provided by operating activities            14,637      15,520
                                                            --------    --------

CASH FLOWS USED FOR INVESTING ACTIVITIES:
-----------------------------------------
   Capital expenditures                                       (1,636)     (5,630)
   Increase in other assets                                     (686)       (241)
                                                            --------    --------
      Net cash used for investing activities                  (2,322)     (5,871)
                                                            --------    --------

CASH FLOWS USED FOR FINANCING ACTIVITIES:
-----------------------------------------
   Repayment of long-term debt                               (11,015)     (9,945)
   Exercise of stock options by employees                         74         285
   Dividends paid                                               (689)       (683)
   Payments received for notes receivable                          4           0
                                                            --------    --------
      Net cash used for financing activities                 (11,626)    (10,343)
                                                            --------    --------

EFFECT OF EXCHANGE RATE CHANGES ON CASH                           78          54

NET INCREASE (DECREASE) IN CASH                                  767        (640)

CASH AT BEGINNING OF PERIOD                                    1,589       1,225
                                                            --------    --------

CASH AT END OF PERIOD                                       $  2,356    $    585
                                                            ========    ========
</TABLE>

See notes to condensed consolidated financial statements.


                                       4

<PAGE>

                     BUSH INDUSTRIES, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              ----------------------------------------------------
                       Thirteen weeks ended March 30, 2002
                                   (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 fiscal year ended December 29, 2001. 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 29, 2001.

     The foregoing financial information reflects all adjustments which are, in
     the opinion of management, of a normal and 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.   Total comprehensive income for the first quarter of 2002 and 2001 was as
     follows:

                                                        THIRTEEN WEEKS ENDED
                                                    ----------------------------
                                                    MARCH 30,          MARCH 31,
                                                         2002               2001
                                                    ---------       ------------
                                                            (In thousands)
     Net earnings                                      $1,093            $3,913
     Accumulated other comprehensive income (loss)        101              (208)
                                                       ------            ------
     Total comprehensive income                        $1,194            $3,705
                                                       ======            ======


3.   Inventories consist of the following:

                                                    MARCH 30,       DECEMBER 29,
                                                         2002               2001
                                                    ---------       ------------
                                                            (In thousands)
     Raw material                                     $13,921           $16,137
     Work in progress                                   5,510             5,570
     Finished goods                                    33,306            33,590
                                                      -------           -------
                                                      $52,737           $55,297
                                                      =======           =======

                                       5

<PAGE>

4.   Segment Reporting

     The Company operates its business in four reportable segments: (1) Bush
     Business Furniture, which concentrates on the business office and the home
     office markets with sales to the office superstore and dealer channels; (2)
     Bush Furniture, which focuses on home entertainment, home office and other
     home furnishings products; (3) Bush Furniture Europe, which sells
     commercial, home office and other furnishings in the European market; and
     (4) Bush Technologies, which is focused on the cell phone accessories
     after-market, as well as the utilization of surface technologies in
     automotive interiors, cosmetics, sporting goods and consumer electronics.

     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.

<TABLE>
<CAPTION>
                                                                THIRTEEN WEEKS ENDED
                                                                --------------------
                                                                MARCH 30,   MARCH 31,
                                                                     2002        2001
                                                                ---------   ---------
                                                                    (In thousands)
     <S>                                                        <C>         <C>
     Net Sales from External Customers:
        Bush Business Furniture                                 $ 40,344    $ 46,235
        Bush Furniture                                            29,327      31,057
        Bush Furniture Europe                                     13,976      16,211
        Bush Technologies                                          4,685      11,125
                                                                --------    --------
        Consolidated Net Sales                                  $ 88,332    $104,628
                                                                ========    ========


     Inter-segment Sales:
        Bush Business Furniture                                 $      0    $      0
        Bush Furniture                                                 0           0
        Bush Furniture Europe                                        627       1,748
        Bush Technologies                                              0           0
                                                                --------    --------
        Total                                                   $    627    $  1,748
                                                                ========    ========


     Earnings (Loss) Before Income Taxes:
        Bush Business Furniture                                 $  1,700    $  1,703
        Bush Furniture                                               947         209
        Bush Furniture Europe                                       (499)        195
        Bush Technologies                                           (310)      4,554
                                                                --------    --------
        Consolidated Earnings Before Income Taxes               $  1,838    $  6,661
                                                                ========    ========
</TABLE>


                                       6

<PAGE>

<TABLE>
<CAPTION>
                                                              MARCH 30,       DECEMBER 29,
                                                                   2002               2001
                                                              ---------       ------------
                                                                    (In thousands)
     <S>                                                      <C>             <C>
     Total Assets:
      Bush Business Furniture and Bush Furniture (*)          $231,094            $243,383
      Bush Furniture - Europe                                   56,029              56,054
      Bush Technologies                                         25,050              21,740
                                                              --------            --------
      Consolidated Total Assets                               $312,173            $321,177
                                                              ========            ========
</TABLE>

     (*)  The Company's North American furniture segments, Bush Business
          Furniture and Bush Furniture, share certain productive assets. These
          productive assets manufacture components for both Bush Business
          Furniture and Bush Furniture products. As a result, identifiable
          assets are not allocated between Bush Business Furniture and Bush
          Furniture.

5.   Goodwill

     Effective December 30, 2001 (the first day of fiscal 2002), the Company
     adopted Statement of Financial Accounting Standards No. 142, "Goodwill and
     Other Intangible Assets" ("SFAS No. 142"). Under SFAS No. 142, goodwill is
     no longer amortized, but reviewed for impairment annually, or more
     frequently if certain indicators arise. The Company is required to complete
     the initial step of a transitional impairment test within six months of
     adoption of SFAS No. 142 and to complete the final step of the transitional
     impairment test by the end of the fiscal year. Any impairment loss
     resulting from the transitional impairment test would be recorded as a
     cumulative effect of a change in accounting principle no later than the end
     of fiscal year 2002. Subsequent impairment losses will be reflected in
     operating income or loss in the consolidated statements of operations.

     Goodwill and other intangible assets subject to SFAS No. 142 were
     approximately $15 million as of March 30, 2002. For the quarter ended March
     30, 2002 there was no goodwill amortization expense and there were no
     changes in the carrying amount of goodwill.

     Actual results of operations for the thirteen weeks ended March 30, 2002
     and as adjusted results of operations for the thirteen weeks ended March
     31, 2001 had the non-amortization provisions of SFAS No. 142 been applied
     in that fiscal quarter are as follows:



<TABLE>
<CAPTION>
                                                                  THIRTEEN WEEKS ENDED
                                                                -----------------------
                                                           MARCH 30,             MARCH 31,
                                                                2002                  2001
                                                           ---------             ---------
                                                       (in thousands, expect per share amounts)
     <S>                                               <C>                    <C>
     Net earnings:
       As reported                                          $1,093                 $3,913
       Goodwill amortization, net of income taxes              ---                    263
                                                            ------                 ------
       As adjusted                                          $1,093                 $4,176
</TABLE>


                                       7

<PAGE>

                                                  THIRTEEN WEEKS ENDED
                                                -----------------------
                                             MARCH 30,           MARCH 31,
                                                 2002                2001
                                             ---------           ---------
                                        (in thousands, expect per share amounts)

     Basic earnings per share:
        As reported                          $0.08                 $0.29
        As adjusted                          $0.08                 $0.31

     Diluted earnings per share:
        As reported                          $0.08                 $0.28
        As adjusted                          $0.08                 $0.29


6.   Earnings per share

     There were 169,000 and 159,878 stock options excluded from the computation
     of diluted earnings per share due to their antidilutive effect for the
     first quarter of 2002 and 2001, respectively.






                                       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 Quarterly Report on Form 10-Q constitute "forward-looking
statements" within the meaning of the Federal Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and unknown risks
and uncertainties, which may cause the Company's actual results in future
periods to differ materially from forecasted results. Forward-looking statements
include statements regarding the intent, belief, projected or current
expectations of the Company or its Officers (including statements preceded by,
followed by or including forward-looking terminology such as "may," "will,"
"should," "believe," "expect," "anticipate," "estimate," "continue" or similar
expressions or comparable terminology), with respect to various matters. The
Company cannot guarantee future results, levels of activity, performance or
achievements. Factors that could cause or contribute to such differences
include, but are 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:
----------------------

     First quarter sales for the 13 week period ended March 30, 2002 were
$88,332,000. This represented a decrease of $16,296,000, or approximately 15.6%,
compared to net sales of $104,628,000 for the 13 week period ended March 31,
2001. As compared to the year ago fiscal quarter, the decrease in net sales
primarily reflects the difficult current economic conditions in the markets
served by the Company's products and the resultant lower order rates from the
Company's customers. Lower sales levels were experienced in all of the Company's
business segments.

     Cost of sales decreased $9,182,000 for the 13 week period ended March 30,
2002, compared to the 13 week period ended March 31, 2001. The decrease in cost
of sales was primarily due to lower sales volumes. Cost of sales as an
approximate percentage of net sales increased by 2.5 percentage points, from
69.6% in the first quarter of 2001 to 72.1% in the first quarter of 2002. The
increase in cost of sales as an approximate percentage of net sales primarily
reflects the impact of lower sales and gross margins in the Bush Technologies
segment.

     Selling, general and administrative expenses decreased $1,391,000 for the
13 week period ended March 30, 2002, compared to the 13 week period ended March
31, 2001, and as an approximate percentage of net sales increased from 21.5% in
the first quarter of 2001 to 23.9% in the first quarter of 2002. 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, and a reduction in employee performance bonuses
proportionate to the reduction in pre-tax return on sales. The increase in
selling, general and administrative expenses as an approximate percentage of net
sales primarily reflects fixed costs


                                       9

<PAGE>

being spread over a lower sales volume.

     Interest expense for the 13 week period ended March 30, 2002 decreased to
$1,725,000 (or approximately 2.0% of net sales) from $2,625,000 (or
approximately 2.5% of net sales) for the 13 week period ended March 31, 2001.
The decrease in interest expense was primarily due to decreases in the interest
rates paid on the Company's revolving credit facility and a decrease in average
debt.

     The effective income tax rate decreased from 41.3% for the 13 week period
ended March 31, 2001 to 40.5% for the 13 week period ended March 30, 2002.

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

     Working capital at March 30, 2002 decreased by $7,459,000, as compared to
working capital at year-end 2001. Such decreased working capital was due, in
part, to a decrease in prepaid expenses and other current assets, inventories
and an increase in accounts payable, partially offset by a increase in accounts
receivable and a decrease in other accrued liabilities. The decrease in prepaid
expenses and other current assets primarily reflects an overpayment of income
taxes in fiscal year 2001 that were refunded in the first quarter of fiscal year
2002. The decrease in inventories and the increase in accounts payable reflect
actions taken to reduce working capital requirements. Total assets at March 30,
2002 decreased by $9,004,000 over year-end 2001 due, in part, to decreases in
prepaid expenses and other current assets, property, plant and equipment and
inventories. The decrease in property, plant and equipment primarily reflects
capital expenditures that are less than the level of depreciation. In addition,
total liabilities decreased by $9,597,000 at March 30, 2002, as compared to
year-end 2001, due mostly to a decrease in long-term debt and other accrued
liabilities, partially offset by an increase in accounts payable.

     The Company spent $1,636,000 on capital expenditures during the first
quarter of 2002, which were financed primarily with net cash flow from operating
activities. Capital expenditures for fiscal year 2002 are currently forecasted
to be approximately $7 million.

     The Company has a revolving credit facility, initially dated as of June 26,
1997 and as amended, with JPMorgan Chase Bank and other lending institutions. In
fiscal year 2001 the Company entered into a sixth amendment, dated as of
December 28, 2001. This amendment modified certain covenants of the Company
under the credit facility, modified the pricing grid to reflect the newly
permitted ratios, granted a security interest in all domestic tangible personal
property and intangible assets of the Company, extended the maturity date of the
loan from June 30, 2003 to June 30, 2004 and modified the amount of money the
Company can borrow under the credit facility from an aggregate $210,000,000 to
an aggregate $173,000,000.

     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, 2004 with a balloon


                                       10

<PAGE>

payment of the then remaining principal and any accrued interest. The Company
has classified all of the line of credit as long-term, as there are no required
principal payments due until June 30, 2004. 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 1.5% to 3.5%, 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 $173,000,000
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 July 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 141, "Business Combinations"
(SFAS No. 141), and Statement of Financial Accounting Standards No. 142,
"Goodwill and Other Intangible Assets" (SFAS No. 142). The FASB also issued
Statement of Financial Accounting Standards No. 143, "Accounting for Obligations
Associated with the Retirement of Long-Lived Assets" (SFAS No. 143), and
Statement of Financial Accounting Standards No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" (SFAS No. 144), in August and
October 2001, respectively.

     SFAS No. 141 requires the purchase method of accounting for business
combinations initiated after June 30, 2001 and eliminates the
pooling-of-interest method. The adoption of SFAS No. 141 had no material impact
on the Company's consolidated financial statements.

     Effective December 30, 2001 (the first day of fiscal 2002), the Company
adopted SFAS No. 142. Under the new rules, the Company will no longer amortize
goodwill and other intangible assets with indefinite lives, but such assets will
be subject to periodic testing for impairment. 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 to be included in
results from operations may be necessary. SFAS No. 142 also requires the Company
to complete a transitional goodwill impairment test six months from the date of
adoption. Any goodwill impairment loss recognized as a result of the
transitional goodwill impairment test will be recorded as a cumulative effect of
a change in accounting principle no later than the end of fiscal



                                       11

<PAGE>

year 2002. The Company is currently evaluating, but has not yet determined, the
impact of SFAS No. 142 on its financial position and results of operations.
However, the Company expects that a substantial amount of its intangible assets
will no longer be amortized. Goodwill and other intangible assets subject to
SFAS No.142 were approximately $15 million as of December 29, 2001 and the
associated pre-tax amortization was approximately $1.4 million in fiscal year
2001.

     SFAS No. 143 establishes accounting standards for the recognition and
measurement of an asset retirement obligation and its associated asset
retirement cost. It also provides accounting guidance for legal obligations
associated with the retirement of tangible long-lived assets. SFAS No. 143 is
effective in fiscal years beginning after June 15, 2002, with early adoption
permitted. The Company expects that the provisions of SFAS No. 143 will not have
a material impact on its consolidated results of operations and financial
position upon adoption. The Company plans to adopt SFAS No. 143 effective
December 29, 2002 (the first day of fiscal 2003).

     SFAS No. 144 establishes a single accounting model for the impairment or
disposal of long-lived assets, including discontinued operations. SFAS No. 144
superseded Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of"
(SFAS No. 121), and APB Opinion No. 30, "Reporting the Results of Operations -
Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary,
Unusual and Infrequently Occurring Events and Transactions". The provisions of
SFAS No. 144 are effective in fiscal years beginning after December 15, 2001,
with early adoption permitted, and in general are to be applied prospectively.
Effective December 30, 2001 (the first day of fiscal 2002), the Company adopted
SFAS No. 144. The adoption of SFAS No. 144 had no material impact on Company's
consolidated financial statements.


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
-----------------------------------------------------------

     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 first
quarter of fiscal year 2002, a one percentage point change in interest rates
would result in annual interest expense fluctuating approximately $1.1 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 FORM 8-K
-------   --------------------------------

          (a)  Exhibits: None.

          (b)  Reports on Form 8-K:
               During the first quarter of fiscal year 2002, an 8-K was filed on
               March 14, 2002 regarding an amendment to the Company's existing
               credit facility with JPMorgan Chase Bank and other lending
               institutions.



                                       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:     May 7, 2002                        By: /s/ Neil Frederick
      ------------------------                   -------------------------------
                                                          (Signature)
                                                 Neil Frederick
                                                 Chief Financial Officer and
                                                 Treasurer



                                       14