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 May 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 July 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
            May 31, 2001 ......................................................3

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

          Consolidated Statements of Cash Flows
            For the three month periods
            Ended May 31, 2001 and May 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 May 31, 2001 and the results of its  operations  and
changes in its financial position for the three month periods ended May 31, 2001
and May 31, 2000.

<PAGE>

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

                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                             May 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)

                                                          May 31,       May 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)
<TABLE>
<CAPTION>
                                                                        Thirteen Weeks Ended
                                                                       ---------------------
                                                                       May 31,       May 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 MAY 31, 2001 AND MAY 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 and each of its  subsidiaries  to be merged with,  or to acquire
the assets or the capital stock of,  existing  businesses,  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 on July 6, 2001 with the Bankruptcy  Court,  will propose 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  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
September  12,  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  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.

      As a result of the  foregoing,  during the quarters ended May 31, 2001 and
May 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 May 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  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, 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  September 12, 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 July 17, 2001                   By /s/ John H. Treglia
                                         -----------------------------------
                                         John H. Treglia
                                         President, Secretary and CFO


Dated July 17, 2001                   By /s/ Marsha C. Ellis
                                         -----------------------------------
                                         Marsha C. Ellis
                                         Treasurer and Chief Accounting Officer


                                       9