U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

(Mark One)

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended August 31, 2001.

[ ] Transition  report under Section 13 or 15(d) of the Securities  Exchange Act
of 1934 for the transition period from _______ to _______.

                         Commission File Number: 1-8509

                           NANTUCKET INDUSTRIES, INC.
               (Exact Name of Issuer as Specified in Its Charter)

Delaware                                                      58-0962699
(State of other jurisdiction of                              (I.R.S. Employer
Incorporation or Organization)                               Identification No.)

              45 Ludlow Street, Suite 602, Yonkers, New York 10705
                    (Address of principal executive offices)

                                  914-375-7591
              (Registrant's telephone number, including area code)

         (Former Name, Former Address and Former Fiscal Year, if Changed
                               Since Last Report)

Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period  that the  issuer was  required  to file such  reports)  and (2) has been
subject to such filing requirements for the past 90 days.

X YES     NO ____

                      APPLICABLE ONLY TO CORPORATE ISSUERS

      As of October 15, 2001, the Registrant has outstanding 3,238,796 shares of
common stock not including 3,052 shares classified as Treasury Stock.


<PAGE>

                           Nantucket Industries, Inc.
                             (Debtor-in-Possession)

                                   ----------

                                TABLE OF CONTENTS

PART I

Item 1 - Financial Information (unaudited)                                  Page
                                                                            ----

          Nantucket Industries, Inc. and Subsidiaries
            Consolidated Balance Sheet as of
            August 31, 2001 ................................................. 3

          Consolidated Statements of Operations
            For the three month periods
            Ended August 31, 2001 and August 31, 2000........................ 4

          Consolidated Statements of Cash Flows
            For the three month periods
            Ended August 31, 2001 and August 31, 2000.......................  5

          Notes to Financial Statements...................................... 6

Item 2    Management's Discussion and Analysis of
          Financial Condition and Results of Operations...................... 7

PART II

Item 1 - Legal Proceedings................................................... 8

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

      The financial  statements  are unaudited.  However,  the management of the
issuer  believes  that all  necessary  adjustments  (which  include  only normal
recurring  adjustments)  have been  reflected  to present  fairly the  financial
position of registrant at August 31, 2001 and the results of its  operations and
changes in its  financial  position for the three month periods ended August 31,
2001 and August 31, 2000.


<PAGE>

                   Nantucket Industries, Inc. and Subsidiaries
                             (Debtor-in-Possession)

                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                      August 31,       February 28,
                                                                                         2001              2001
                                                                                     ------------      ------------
                                                                                                            (1)
<S>                                                                                  <C>                <C>
                                 Assets

CURRENT ASSETS
   Cash                                                                              $      1,452       $     1,452
   Accounts receivable (Notes 2 and 8)
   Inventories (Notes 6 and 8)
   Other current assets                                                                    20,331            20,331
                                                                                     ------------       -----------
              Total current assets                                                         21,783            21,783
                                                                                     ------------       -----------
Property, plant and equipment, net                                                              0                 0
Other assets, net                                                                               0                 0
                                                                                     ------------       -----------
                                                                                     $     21,783       $    21,783
                                                                                     ============       ===========
                 LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
   Convertible subordinated debentures (Note 4)                                      $    826,845       $   826,845
   Current portion of capital lease obligations (Note 8)                                   93,070            93,070
   Accounts payable                                                                       244,764           244,764
   Accrued salaries and employee benefits                                                  11,031            11,031
   Accrued unusual charge (Note 5)                                                         77,083            77,083
   Accrued expenses and other liabilities                                                 129,515           129,515
   Accrued royalties                                                                      319,048           319,048
                                                                                     ------------       -----------
              Total current liabilities                                                 1,701,356         1,701,356
CAPITAL LEASE OBLIGATIONS, NET OF CURRENT PORTION                                               0                 0
                                                                                        1,701,356         1,701,356
                                                                                     ------------       -----------
                  COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
   Preferred stock, $.10 par value; 500,000 shares authorized, of which                       500               500
      5,000 shares have been designated as non-voting with liquidating
      preference of $200 per share and are issued and outstanding
   Common stock, $.10 par value; authorized 20,000,000                                    324,185           324,185
      shares;            issued 3,241,848
   Additional paid-in capital                                                          12,539,503        12,539,503
   Deferred issuance cost                                                                 (61,069)          (61,069)
   Accumulated deficit                                                                (14,462,755)      (14,462,755)
                                                                                     ------------       -----------
                                                                                       (1,659,636)       (1,659,636)
   Less 3,052 shares of common stock held in treasury, at cost                             19,937            19,937
                                                                                     ------------       -----------
                                                                                       (1,679,573)       (1,679,573)
                                                                                     ------------       -----------
                                                                                     $     21,783       $    21,783
                                                                                     ============       ===========
</TABLE>

(1) Derived from audited financial statements.
The accompanying notes are an integral part of these statements.


                                       3
<PAGE>

                   Nantucket Industries, Inc. and Subsidiaries
                             (Debtor-in-Possession)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

                                                      August 31,      August 31,
                                                        2001            2000
                                                     ----------      -----------
Net sales                                                   $0              $0
Cost of sales                                                0               0
                                                     ---------       ---------

              Gross profit                                   0               0
                                                     ---------       ---------

Selling, general and administrative expenses                 0               0
                                                     ---------       ---------

              Operating (loss) profit                        0               0
                                                     ---------       ---------

Other income                                                 0               0
Interest expense                                             0               0
                                                     ---------       ---------

              Net income (loss)                              0               0
                                                     =========       =========

Net income (loss) per share - basic and diluted
   (Note 3)                                                  0               0
                                                     =========       =========

Weighted average common shares outstanding           3,238,796       3,238,796
                                                     =========       =========



The accompanying notes are an integral part of these statements.


                                       4
<PAGE>

                   Nantucket Industries, Inc. and Subsidiaries
                             (Debtor-in-Possession)

                      Consolidated Statements of Cash Flows
                                   (unaudited)

                                                         5

<TABLE>
<CAPTION>
                                                                                      Thirteen Weeks Ended
                                                                                ----------------------------------
                                                                                   August 31,       August 31,
                                                                                      2001             2000
                                                                                ----------------------------------
<S>                                                                                    <C>              <C>
Cash flows from operating activities:
   Net (loss) earnings                                                                 $0               $0
   Adjustments to reconcile net (loss) income
      to net cash (used in) provided by operating activities:
        Depreciation and amortization                                                   0                0
        Provision for doubtful accounts                                                 0                0
        Gain on sale of fixed assets                                                    0                0
        Provision for obsolete and slow-moving inventory                                0                0
        (Increase) decrease in assets
           Accounts receivable                                                          0                0
           Inventories                                                                  0                0
           Other current assets                                                         0                0
        Increase (decrease) in liabilities
           Accounts payable                                                             0                0
           Accrued expenses and other liabilities                                       0                0
           Accrued unusual charge                                                       0                0
                                                                                ----------------------------------
              Net cash (used in) provided by operating activities                       0                0
                                                                                ----------------------------------
Cash flows from investing activities
   (Additions) removals to property, plant and equipment                                0                0
   Proceeds from sale of fixed assets                                                   0                0
   Decrease in other assets                                                             0                0
                                                                                ----------------------------------
              Net cash used in investing activities                                     0                0
                                                                                ----------------------------------
Cash flows from financing activities
   Repayments under line of credit agreement, net                                       0                0
   Payments of capital lease obligations                                                0                0
   Repayments of long-term debt                                                         0                0
                                                                                ----------------------------------
              Net cash used in financing activities                                     0                0
                                                                                ----------------------------------
                NET (DECREASE) INCREASE IN CASH                                         0                0

Cash at beginning of period                                                             0                0
                                                                                ----------------------------------

Cash at end of period                                                                  $0               $0
                                                                                ==================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid during the period:

      Interest                                                                         $0               $0
                                                                                ==================================
      Income taxes                                                                     $0               $0
                                                                                ==================================
</TABLE>

The accompanying notes are an integral part of these statements.


                                       5
<PAGE>

                   NANTUCKET INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
            THIRTEEN WEEKS ENDED August 31, 2001 AND August 31, 2000
                                   (unaudited)

      The following notes to the  consolidated  financial  statements  should be
read in light of the following:

      As a  result  of the  following,  all  information  which  appears  in the
financial statements included in this report, is purely historical and will have
no impact on future  operations  and results,  if any. For an explanation of the
company's  historical  accounting  policies  and data,  reference is made to the
Notes to the Financial  Statements  included in the  Company's  annual report on
Form 10-K for the fiscal year ended February 28, 2001.

      The Company experienced significant losses from operations in recent years
which resulted in severe cash flow deficiencies.  As a result of such losses and
the Company's  inability to raise  financing to continue  operations,  it became
insolvent and, finally, it terminated all business operations in October 1999.

      On March 3, 2000, the Company filed a Voluntary  Petition under Chapter 11
of the  United  States  Bankruptcy  Code in the U.S.  Bankruptcy  Court  for the
Southern District of New York. The goal of the projected  reorganization will be
for the Company to be merged with, or to acquire the assets or the capital stock
of,  existing  businesses,  or to  effect  similar  business  combinations.  The
Company's  subsidiaries  will be dissolved.  No assurance can be given that this
goal will be achieved.  Management  will have sole discretion to determine which
businesses,  if any,  may be  merged  or  acquired,  as well as the terms of any
merger or acquisition.  The Company's  second  ammended Plan of  Reorganization,
dated July 5, 2001 and the Disclosure Statement thereto, was filed by Management
on July 6, 2001 with the Bankruptcy  Court.  This Plan proposes that the Company
acquire,  in a "reverse  acquisition",  Accutone  Inc.  a  Delaware  Corporation
("Accutone")  controlled by John H. Treglia, the Company's current president. In
a "reverse  acquisition",  the shareholders of the company which is acquired (in
this  case,  Accutone)  will end up owning the  preponderance  of the issued and
outstanding  capital  stock of the company which was the acquirer (in this case,
Nantucket Industries, Inc.). before it can be put into effect, the proposed Plan
of  Reorganization  will have to be  approved  by the  Company's  creditors  and
interest  holders,  confirmed by the Bankruptcy  Court.  An order  approving the
Disclosure  Statement has been  presented to the Court for Settlement on October
17, 2001 and a hearing to confirm the Plan is  scheduled  for December 10, 2001.
Management is  completely  unable to predict or to even venture an opinion as to
whether all such required  approvals and confirmation will be forthcoming.  As a
result,  no  prediction  can  be  made  with  respect  to  whether  the  reverse
acquisition of Accutone by the Company will ever take place. If it should occur,
such  acquisition  would not be  considered  to be an arm's length  transaction.
While any  transaction  between  the  Company  and any of its  affiliates  could
present  management  with  a  conflict  of  interest,  it is  the  intention  of
management that is such  transaction  should occur, the terms thereof will be no
less beneficial to the Company than if such  transaction had been effected on an
arms  length  basis.  If a  Plan  of  Reorganization  is  not  confirmed  by the
Bankruptcy  Court,  or is confirmed,  but management is not able to successfully
complete a merger or acquisition, the Company will cease to exist.


                                       6
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

      The Company experienced significant losses from operations in recent years
which resulted in severe cash flow deficiencies.  As a result of such losses and
the Company's  inability to raise  financial to continue  operations,  it became
insolvent and, finally,  it terminated all business  operations in October 1999.
On March 3, 2000, the Company filed a Voluntary Petition under Chapter 11 of the
United  States  Bankruptcy  Code in the U.S.  Bankruptcy  Court for the Southern
District of New York.

      As a result of the  foregoing,  during the quarters  ended August 31, 2001
and August 31,  2000,  the  company  made no sales,  realized no  revenues,  and
incurred no operational expenses.

      For  discussions  in more  detail  respecting  the  Company's  results  of
operations  during the three years leading up to the  termination of operations,
reference is made to Item 7. "management's  Discussion and analysis of Financial
Condition and Results of  Operations"  which  appeared in the  Company's  annual
reports on Forms 10-K for the fiscal years ended February 28, 2001 and 2000.

Liquidity and Capital Resources

      During the several years leading up to the termination of operations,  the
company had funded its operating  losses by refinancing  its debt and increasing
its  capital  through the sale of debt and equity  securities.  As at August 31,
2001, the company's  assets and liabilities were unchanged from the February 28,
2001 year end, with total assets of $21,783 and total liabilities of $1,701,356.

      For  discussions  in more detail  respecting  the Company's  liquidity and
capital  resources  during  the three  years  leading up to the  termination  of
operations,  reference is made to Item 7. "Management's  Discussion and analysis
of  Financial  Condition  and  Results  of  Operations"  which  appeared  in the
Company's  annual  reports on forms 10-K for the fiscal years ended February 28,
2001 and 2000.


                                       7
<PAGE>

                                     PART II

                                OTHER INFORMATION

Item 1 - Legal Proceedings

      On March 3, 2000,  Nantucket  Industries,  Inc.  (the  "Company")  filed a
Voluntary  petition under chapter 11 of the United States Bankruptcy Code in the
U.S.  Bankruptcy  Court  for the  Southern  District  of New York.  (Case  Name:
Nantucket Industries,  Inc., Case Number:  00-B10867). The goal of the projected
reorganization  will be for the  Company to be merged  with,  or to acquire  the
assets  or the  capital  stock of an  existing  business  or to  effect  similar
business  combinations.  No  assurance  can be  given  that  this  goal  will be
achieved. Management will have sole discretion to determine which businesses, if
any,  may be  merged  or  acquired,  as  well  as the  terms  of any  merger  or
acquisition.  The Plan of  Reorganization  and the disclosure  Statement,  which
Management  filed with the  Bankruptcy  Court,  will  propose  that the  company
acquire,  in a "reverse  acquisition",  Accutone  In.,  a  Delaware  Corporation
("Accutone")  controlled by John H. Treglia, the company's current president. In
a "reverse  acquisition",  the shareholders of the company which is acquired (in
this  case,  Accutone)  will end up owning the  preponderance  of the issued and
outstanding  capital  stock of the company which was the acquirer (in this case,
Nantucket Industries, Inc.). Before it can be put into effect, the proposed Plan
of Reorganization will have to be approved by the Company's creditors, confirmed
by  the  Bankruptcy   Court,   and  not  objected  to  after  the  fact  by  the
court-appointed Trustee for the Creditors. A hearing before the Bankruptcy Court
with  respect to the  aforesaid is  currently  scheduled  for December 10, 2001.
Management is  completely  unable to predict or to even venture an opinion as to
whether all such required  approvals and confirmation will be forthcoming.  As a
result,  no  predication  can be  made  with  respect  to  whether  the  reverse
acquisition of Accutone by the company will ever take place. If it should occur,
such  acquisition  would not be  considered  to be an arm's length  transaction.
While any  transaction  between  the  Company  and any of its  affiliates  could
present  management  with  a  conflict  of  interest,  it is  the  intention  of
management that if such  transaction  should occur, the terms thereof will be no
less beneficial to the Company than if such  transaction had been effected on an
arms  length  basis.  If a  Plan  of  Reorganization  is  not  confirmed  by the
Bankruptcy  Court,  or is confirmed,  but management is not able to successfully
complete a merger or acquisition, the Company will cease to exist.

Item 6 - Exhibits and Reports on Form 8-K

      None


                                       8
<PAGE>

                                   SIGNATURES

      In accordance  with the  requirements  of the Exchange Act, the registrant
has caused this report to be signed on its behalf by the  undersigned  thereunto
duly authorized.

                                       NANTUCKET INDUSTRIES, INC.

Dated October 15, 2001                 By /s/ John H. Treglia
                                          --------------------------------------
                                          John H. Treglia
                                          President, Secretary and CFO

Dated October 15, 2001                 By /s/ Marsha C. Ellis
                                          --------------------------------------
                                          Marsha C. Ellis
                                          Treasurer and Chief Accounting Officer


                                       9