EXHIBIT NUMBER 10.43

                                                                    July 1, 1997

Mr. Robert A. Homler
13 Laurelwood Drive
Bernardsville, NJ 07924

Dear Mr. Homler:

       This letter sets forth the terms of your employment with Levitz (Levitz
being defined for this purpose as Levitz Furniture Corporation or any of its
subsidiaries). You agree to devote your primary working time, skill, attention
and best efforts to the business of Levitz as President-Merchandise/Marketing of
Levitz at Levitz's Boca Raton, Florida offices or in such other similar
executive position or office as Levitz's Chief Executive Officer may designate.

       In consideration of your services as set forth above, and for other good
and valuable consideration, receipt of which is hereby acknowledged, Levitz
hereby agrees as follows:

       1. BASE SALARY. Your annual base salary will be $350,000 to be paid in
accordance with Levitz's normal payroll procedures.

       2. PERFORMANCE BONUS. You will participate in Levitz's annual performance
bonus program for officers, as that program may be amended from time to time,
with a maximum annual bonus of 50% of your base salary. For the fiscal year
ending March 31, 1998, you will receive a bonus of at least $70,000 from that
program.

       3. SIGNING BONUS. You will receive a signing bonus of $25,000 payable
within three business days after you report for work at Levitz's offices in Boca
Raton, Florida.

       4. STOCK OPTION GRANT. As soon as possible after the date hereof, you
will receive, subject to grant by the compensation Committee of the Board of
Directors of Levitz Furniture Incorporated (LFI), options to purchase 250,000
shares of the common stock of LFI at an exercise price equal to the average of
the high and low prices of such stock on the New York Stock Exchange on the date
of grant and on the terms as determined by such Compensation Committee. Provided
that all such options shall be exercisable in various increments starting one
year from date of grant, and all such options will be fully exercisable no later
than three years from date of grant.

       5. RELOCATION EXPENSES. It is understood that you will sell your home in
Bernardsville, NJ. Levitz will reimburse you for the cost of reasonable real
estate commissions, transfer taxes and closing costs and fees as normally paid
by a home seller in that area. Levitz will also pay your household moving
expenses from Bernardsville, NJ to Boca Raton, Florida in accordance with
Levitz's relocation procedures for officers, which will include reimbursement
for the expense of up to three house hunting trips of up to three days each and
the movement of two personal cars. Levitz will also provide you an apartment in
Boca Raton, Florida for a period of not more than twelve months from the date of
this letter or until you sell your home in New Jersey, whichever comes first.

       6. SEVERANCE BENEFITS. Levitz shall have the right to terminate your
employment at any time.

              (a) If such termination is for "gross misconduct," then such
termination shall become effective immediately. Levitz shall have only those
rights or obligations which may have accrued prior to such termination. You

                                       1
<PAGE>

shall be entitled to all earned and unpaid salary to the date of termination as
well as all other benefits which may be due you pursuant to and subject to any
of Levitz's health or welfare plans in which you are a participant. "Gross
misconduct" for purposes of this letter shall mean that you have been convicted
of, or have pleaded NOLO CONTENDERE to, a felony, whether or not related to
Levitz's business, or you were guilty of reckless or willful misconduct in
performance of your duties hereunder. Levitz's right to terminate your
employment shall be in addition to any other rights it may have against you.

              (b) If such termination is for any reason other than "gross
misconduct," your death or disability, you shall be entitled to receive
severance benefits from Levitz as set forth below:

                    (i) If such subsection (b) termination occurs within the
first 12 months after the date of this letter, you will continue to receive your
then annual salary for a period equal to 24 months less the number of months
elapsed from the date of this letter to the date of such termination. However,
any amounts paid in excess of 12 months of salary are subject to reduction by
the amount of compensation received, in any form, from a successor employer.

                    (ii) If such subsection (b) termination occurs more than 12
months from the date of this letter, Levitz will continue to pay your annual
salary for 12 months.

                         In the event of a subsection (b) termination, you will
also be entitled to receive your guaranteed bonus or a pro-rata earned but
unpaid performance bonus and you will receive all other benefits which may be
due you pursuant to and subject to the provisions of any Levitz health or
welfare plan in which you are a participant.

              (c) In the event of a subsection (b) termination you may elect to
receive a lump sum payment, in lieu of continuing periodic payments, equal to
the present value of such periodic payments, using a 5% discount rate.

              (d) In the event of a subsection (b) termination you will be
deemed to have an additional three years of age and service for the purposes of
the Company's Supplemental Executive Retirement Plan ("SERP").

       7. CHANGE OF CONTROL. Within 30 days after a Change In Control (as
defined in Exhibit A attached hereto) all your stock options will be exercisable
regardless of the date of grant. If within twelve months after a Change In
Control, (i) your employment is terminated by Levitz for other than "gross
misconduct," death or disability, or (ii) you elect to terminate your employment
within 90 days of the occurrence of a Good Cause Event (as defined on Exhibit A
attached hereto), Levitz will (i) continue to pay your annual salary for a
period of 18 months, (ii) pay you an amount equal to the average of your
performance bonus awarded over the last three years or, if you have been
employed by the Company for less than three years, the average of such bonus
awarded during your term of employment with the Company, (iii) continue your
health and welfare benefits as set forth in paragraph 6 above for such 18 month
period, and (iv) you will be deemed to have an additional three years of age and
service for purposes of the SERP.

          You may elect to receive a lump sum payment, in lieu of continuing
periodic payments payable hereunder, equal to the present value of such periodic
payments using a 5% discount rate.

          Salary benefits paid after a Change in Control are not subject to
mitigation.

       8. DEATH AND DISABILITY. If your employment is terminated pursuant to
your death or disability, neither your estate nor you will be entitled to any

                                       2
<PAGE>

severance benefits except as may be payable pursuant to a Levitz health or
welfare benefit plan in which you are a participant. For purposes of this
letter, "disability" means your inability to perform the services to be rendered
by you hereunder due to illness or injury and such inability continues for a
period of six months in any twelve-month period.

       9. SERP AND LIFE INSURANCE. You will be a participant in the SERP
according to the terms of such plan as described in Levitz Furniture
Incorporated's Annual Report for the year ended March 31, 1996. While you are
employed by the Company, the Company will arrange for and pay the premiums for a
life insurance policy on your life in an amount no less than $300,000. Such
policy will be owned by you or a trust for the benefit of your family.

       10. MISCELLANEOUS. This letter contains the entire understanding of you
and Levitz regarding your employment with Levitz. The terms of this letter shall
be governed by the laws of the State of Florida and may be modified except by a
writing signed by both of us.

       If these terms are acceptable to you, please sign below and return one
copy of this letter to me.

                                          Levitz Furniture Corporation

                                          By:  /s/  MICHAEL BOZIC
                                               ---------------------------------
                                               Michael Bozic
                                               Chief Executive Officer

Accepted and Agreed to:

/s/   ROBERT A. HOMLER
--------------------------
Date:  July 1, 1997

                                       3

<PAGE>

                                    EXHIBIT A

"Change in Control" shall mean the occurrence of any one of the following evens
(as used in this definition "Company" means Levitz):

                           (i) any "person" (as such term is used in Sections
       13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
       "Exchange Act")), other than any trustee or other fiduciary holding
       securities under an employee benefit plan of the Company or LFI, or any
       corporation owned, directly or indirectly, by the stockholders of the
       Company or LFI in substantially the same proportions as their ownership
       of stock of the Company or LFI, as the case may be (a "Person"), is or
       becomes the "beneficial owner" (as defined in Rule 13d-3 under the
       Exchange Act), directly or indirectly, of securities of the Company or
       LFI representing 50% or more of the combined voting power of the then
       outstanding securities of the Company or LFI, as the cash may be;

                           (ii) during any period of two consecutive years (not
       including any period prior to the execution of this Agreement),
       individuals who at the beginning of such period constitute the Board or
       the board of LFI, and any new director (other than a director designated
       by a Person who has entered into an agreement with the Company or LFI to
       effect a transaction described in clause (i), (iii) or (iv) of this
       paragraph) whose election by the Board or the board of LFI or nomination
       for election by the Company's or LFI's stockholders, as the case may be,
       was approved by a vote of at least two-thirds (2/3) of the directors of
       the Board or the board of LFI, as the case may be, then still in office
       who either were directors thereof at the beginning of the period or whose
       election or nomination for election was previously so approved, cease for
       any reason to constitute at least a majority thereof; or

                           (iii) the shareholders of the Company or LFI approve
       a merger or consolidation of the Company or LFI with any other
       corporation, other than (A) a merger or consolidation which would result
       in the voting securities of the Company or LFI outstanding immediately
       prior thereto continuing to represent (either by remaining outstanding or
       by being converted into voting securities of the surviving entity) more
       than 50% of the combined voting power of the voting securities of the
       Company or LFI, as the case may be, or such surviving entity outstanding
       immediately after such merger or consolidation or (B) a merger or
       acquisition effected to implement a recapitalization of the Company or
       LFI (or similar transaction) in which no Person acquires more than 50% of
       the then outstanding securities of the Comany or LFI, as the case may be;
       or

                           (iv) the shareholders of the Company or LFI approve a
       plan of complete liquidation of the Company or LFI or an agreement for
       the sale or disposition by the Company or LFI of all or substantially all
       of the Company's or LFI's assets.

"Good Cause Event" shall mean the occurrence of any one of the following events:

                           (i) your assignment to any duties inconsistent with
       your status as an executive officer of Levitz or a substantial adverse
       alteration in the nature of your responsibilities from those in effect
       immediately prior to the Change in Control;

                           (ii) a reduction by Levitz in your annual base salary
       as in effect immediately prior to the Change in Control;

                                       4

<PAGE>

                           (iii) the failure by Levitz to pay you any portion of
       your current compensation or any installment of differed compensation
       under any Levitz deferred compensation under any Levitz deferred
       compensation program in which you participate, within 15 days of the date
       such payment is due;

                           (iv) the failure by Levitz to provide you with
       compensation plans which, in the aggregate, provide you with
       substantially comparable compensation opportunities to those compensation
       opportunities for which you were eligible prior to the Change in Control;
       or

                           (v) the failure by Levitz to continue to provide you
       with benefits substantially similar to those enjoyed by you under any of
       Levitz's pension or welfare benefit plans in which you were a participant
       at the time of the Change in Control, the taking of any action by Levitz
       which would directly or indirectly materially reduce any of such benefits
       or deprive you of any material fringe benefit enjoyed by you at the time
       of the Change in Control.

                                       5