<PAGE>   1
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


(Mark One)

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

For the quarterly period ended NOVEMBER 30, 1996


                                       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   0-19269

                       SUN TELEVISION AND APPLIANCES, INC.
             (Exact name of Registrant as specified in its charter)


             OHIO                                              31-1178151
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                            Identification Number)


6600 PORT ROAD,           GROVEPORT, OH                                43125    
(Address of principal executive offices)                             (Zip Code)

Registrant's telephone number, including area code          (614)492-5600

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___________

Indicate the number of shares outstanding in each of the issuer's classes of
common stock, as of the latest practicable date.

           CLASS                             OUTSTANDING AT DECEMBER 31, 1996

Common shares, $.01 par value                        17,419,408 shares
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                       SUN TELEVISION AND APPLIANCES, INC.
                                TABLE OF CONTENTS



                                                                 PAGE NO.
                                                                 --------

Part I.       FINANCIAL INFORMATION

  Item 1.     Financial Statements

              Statement of Operations
                for the Quarters Ended
                November 30, 1996 and November 25, 1995              3

              Statement of Operations
                for the Nine Months Ended
                November 30, 1996 and November 25, 1995              4

              Balance Sheet
                November 30, 1996 and March 2, 1996                  5

              Statement of Cash Flows
                for the Nine Months Ended
                November 30, 1996 and November 25, 1995              6

              Notes to Financial Statements                        7-8

  Item 2.     Management's Discussion and Analysis of
                Results of Operation and Financial Condition      9-11

Part II.      OTHER INFORMATION

  Item 6.     Exhibits and Reports on Form 8-K                      12






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<PAGE>   3



                         PART I - FINANCIAL INFORMATION



Item 1.       Financial Statements

                       SUN TELEVISION AND APPLIANCES, INC.
                            STATEMENT OF OPERATIONS
         For the quarters ended November 30, 1996 and November 25, 1995
                    (In thousands, except per share amounts)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          November 30,     November 25,
                                              1996             1995
                                          ------------     ------------
<S>                                       <C>              <C>         
Net sales and service revenues            $    181,949     $    202,632

Cost of sales                                  139,842          152,212
                                          ------------     ------------

Gross profit                                    42,107           50,420

Selling, general and administrative             47,335           46,937
Amortization of intangibles                        123              123
                                          ------------     ------------


(Loss) income from operations                   (5,351)           3,360

Other income (expenses):
  Interest income                                   71               88
  Interest expense                              (1,522)          (1,151)
                                          ------------     ------------
Total other                                     (1,451)          (1,063)
                                          ------------     ------------

(Loss) income before income taxes               (6,802)           2,297

Income tax (benefit) expense                    (2,734)             930
                                          ------------     ------------

Net (loss) income                         $     (4,068)    $      1,367
                                          ============     ============

Net (loss) income per share               $       (.23)    $        .08
                                          ============     ============

Weighted average shares outstanding             17,465           17,393
                                          ============     ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       3
<PAGE>   4



                             STATEMENT OF OPERATIONS
       For the nine months ended November 30, 1996 and November 25, 1995
                    (In thousands, except per share amounts)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          November 30,     November 25,
                                             1996             1995
                                          ------------     ------------
<S>                                       <C>              <C>         
Net sales and service revenues            $    485,998     $    550,346

Cost of sales                                  367,781          410,675
                                          ------------     ------------

Gross profit                                   118,217          139,671

Selling, general and administrative            131,210          130,854
Amortization of intangibles                        370              370
Restructuring charge                             2,000             --
                                          ------------     ------------

(Loss) income from operations                  (15,363)           8,447

Other income (expenses):
  Interest income                                  319              442
  Interest expense                              (3,716)          (3,343)
  Other                                           --                894
                                          ------------     ------------
Total other                                     (3,397)          (2,007)
                                          ------------     ------------

(Loss) income before income taxes              (18,760)           6,440

Income tax (benefit) expense                    (7,542)           2,607
                                          ------------     ------------

Net (loss) income                         $    (11,218)    $      3,833
                                          ============     ============

Net (loss) income per share               $       (.64)    $        .22
                                          ============     ============

Weighted average shares outstanding             17,451           17,439
                                          ============     ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       4
<PAGE>   5



                       SUN TELEVISION AND APPLIANCES, INC.
                                  BALANCE SHEET
                       November 30, 1996 and March 2, 1996
                    (In thousands, except per share amounts)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                           November 30,      March 2,
                                                                               1996           1996
                                                                           ------------   ------------
                                     ASSETS
Current assets:
<S>                                                                        <C>            <C>         
  Cash and cash equivalents                                                $     19,516   $     13,583
  Trade accounts receivable, net of allowance
    for doubtful accounts of $400 and $400                                       33,872         18,943
  Income tax refundable                                                           7,511           --
  Merchandise inventory                                                         193,730        114,777
  Prepaid expenses and other                                                      7,549          5,903
  Deferred income taxes                                                           8,118          8,116
                                                                           ------------   ------------
    Total current assets                                                        270,296        161,322

Property and equipment, net                                                     108,308        100,563
Deferred income taxes                                                             7,107          8,410
Intangible assets                                                                14,677         15,047
                                                                           ------------   ------------
Total assets                                                               $    400,388   $    285,342
                                                                           ============   ============
                                   LIABILITIES
Current liabilities:
  Short-term borrowings                                                    $     45,000   $       --
  Trade accounts payable                                                        103,651         20,100
  Accrued liabilities                                                            29,750         23,431
  Income taxes payable                                                             --            3,934
  Current portion of deferred revenue                                            16,629         18,089
                                                                           ------------   ------------
    Total current liabilities                                                   195,030         65,554

Capital lease obligations                                                        14,383         14,651
Deferred revenue, non-current                                                    18,830         21,621
Long-term debt (Note 3)                                                          30,000         30,000
                              STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value,
  500 shares authorized - none issued                                              --             --

Common stock, $.01 par value, 30,000 shares authorized
  17,419 and 17,364 shares issued and outstanding                                   174            174

Additional paid-in capital                                                       88,419         88,268
Retained earnings                                                                53,552         65,074
                                                                           ------------   ------------
Total stockholders' equity                                                      142,145        153,516
                                                                           ------------   ------------

Total liabilities and stockholders' equity                                 $    400,388   $    285,342
                                                                           ============   ============
</TABLE>

   The accompanying notes are an integral part of these financial statements.



                                       5
<PAGE>   6





                       SUN TELEVISION AND APPLIANCES, INC.
                             STATEMENT OF CASH FLOWS
                       For the nine months ended November
                         30, 1996 and November 25, 1995
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               November 30,   November 25,
                                                                  1996            1995
                                                              ------------    ------------
Cash flows from operating activities:
<S>                                                           <C>             <C>         
  Net (loss) income                                           $    (11,218)   $      3,833
  Adjustments to reconcile (loss) income to net cash
    used by operating activities:
  Depreciation and amortization                                      6,974           5,930
  Deferred revenue                                                  (4,250)         (1,319)
  Deferred income taxes                                              1,302             428
  Restructuring charge                                               2,000            --
  Gain of sale property and equipment                                 --              (894)
  Changes in items affecting operations:
    Trade accounts receivable                                      (14,929)        (14,759)
    Merchandise inventory                                          (78,953)        (77,428)
    Prepaid expenses and other                                      (1,766)            (61)
    Trade accounts payable                                          83,551          69,560
    Accrued liabilities                                              4,319           5,278
    Income taxes payable/refundable                                (11,446)         (5,204)
                                                              ------------    ------------
                                                                   (19,224)        (22,614)
                                                              ------------    ------------
    Net cash (used) by operating activities                        (24,417)        (14,636)
                                                              ------------    ------------

Cash flows from financing activities:
  Short-term borrowings                                             45,000          13,000
  Reduction of capital lease obligations                              (268)           (421)
  Issuance of common stock under stock options                         151              13
  Dividends on common stock                                           (305)           (453)
                                                              ------------    ------------
    Net cash provided by financing activities                       44,578          12,139
                                                              ------------    ------------

Cash flows from investing activities:
  Additions to property and equipment, net of disposals            (14,228)        (23,071)
  Proceeds from sale/leaseback                                        --            10,446
  Proceeds from the disposal of property and equipment                --             2,784
                                                              ------------    ------------
    Net cash (used) in investing activities                        (14,228)         (9,841)
                                                              ------------    ------------

    Increase (decrease) in cash and cash equivalents                 5,933         (12,338)
Cash and cash equivalents, beginning of year                        13,583          16,736
                                                              ------------    ------------
  Cash and cash equivalents, end of period                    $     19,516    $      4,398
                                                              ============    ============
Supplemental disclosures of cash flow information:
  Cash paid during the period for:
    Interest                                                  $      1,359    $      1,369
    Income taxes                                              $      2,830    $      7,528
Non-cash investing and financing activities:
  Capital lease                                               $       --      $      2,004
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       6
<PAGE>   7



                       SUN TELEVISION AND APPLIANCES, INC.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

1.       BASIS OF PRESENTATION

         The financial statements as of November 30, 1996 and November 25, 1995
         of Sun Television and Appliances, Inc. (the "Company") are unaudited,
         and are presented pursuant to the rules and regulations of the
         Securities and Exchange Commission. Accordingly, Notes to the Financial
         Statements which are contained in the Company's 1996 Annual Report
         should be read in conjunction with these financial statements. In the
         opinion of management, the accompanying unaudited financial statements
         reflect all adjustments (which are of a normal recurring nature)
         necessary to present fairly the financial position, results of
         operations and cash flows for the interim periods presented, but are
         not necessarily indicative of the results of operations for a full
         fiscal year.

2.       CHANGE IN FISCAL YEAR

         Effective with the beginning of fiscal 1996, the Company has changed
         its fiscal year end to the Saturday closest to February 28 from a
         calendar month-end of February. The first nine months of fiscal 1997
         had 273 days compared to 270 days in the first nine months of fiscal
         1996.

3.       SHORT-TERM AND LONG-TERM DEBT

         As of November 30, 1996, the Company had outstanding short-term
         borrowings of $45,000,000 against its reducing revolving credit
         commitment. The interest rate in effect at November 30, 1996, was prime
         rate, or 8.25%.

         On December 20, 1996, the Company replaced the revolving line of credit
         and the senior note with a collateralized credit agreement, which was
         used to retire both of the existing borrowings. The new Revolving
         agreement has a term of three years, due February 28, 2000, and is
         collateralized by inventory. The Company may borrow up to a maximum of
         $100,000,000 depending on inventory levels. Interest on borrowings will
         either be prime rate +.50% or the Libor + 3%, depending on how the
         Company chooses to borrow funds. The daily cash receipts of the Company
         will pay down the line of credit, while daily disbursements will become
         draws on the line of credit. The most restrictive covenant details the
         granting of liens on most of the Company's current assets.


                                       7
<PAGE>   8
4.       SUBSEQUENT EVENT

         The Company has announced a plan to close nine stores before the
         current fiscal year end. The markets affected include Buffalo(3) and
         Rochester(2), New York and Dayton (3) and Springfield(1), Ohio. The
         closing of these stores will result in a non-recurring restructure
         charge. Costs relating to the closing of the stores, including, but not
         limited to, losses on disposal of merchandise and fixed assets,
         employee severance costs, relocation expenses and other costs related
         to the store closings, such as reductions in central distribution
         employees due to fewer stores, will result in a non-recurring
         restructure charge. The Company is still in the process of estimating
         the total costs relating to the store closings and corporate
         restructuring.

5.       NEW FINANCIAL ACCOUNTING STANDARDS

         The Company has adopted Statement of Financial Accounting Standards
         (SFAS) No. 121, "Accounting for Impairment of Long-Lived Assets and for
         Long-Lived Assets to be Disposed of". SFAS No. 121 requires that
         long-lived assets and certain identifiable intangibles be reviewed for
         impairment whenever events or changes in circumstances indicate that
         full recoverability is questionable. The impact of adopting SFAS No.
         121 was immaterial to the results of operations or financial condition
         of the Company. SFAS No. 123, "Accounting for Stock-Based
         Compensation," has also been adopted for fiscal year 1997. The Company
         will make the required disclosure of the impact of SFAS No. 123 in the
         annual report for fiscal 1997.


                                       8
<PAGE>   9
Item 2.
                       SUN TELEVISION AND APPLIANCES, INC.
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  RESULTS OF OPERATION AND FINANCIAL CONDITION

                              RESULTS OF OPERATIONS

The Company recorded a net loss of $4,068,000 or $.23 per share for the third
quarter ended November 30, 1996, compared to net income of $1,367,000, or $.08
per share for the quarter ended November 25, 1995. The decrease was primarily
attributable to the decline in gross sales volume as well as the decline in
gross profit dollars and rate. The gross profit percentage rate decreased from
24.9% for the third quarter ended November 25, 1995 compared to 23.1% for the
third quarter ended November 30, 1996. Selling, general and administrative
expenses have increased as a percentage of sales as compared to last year due to
the decline in sales volume combined with the additional expenses due to the
operation of additional stores in this quarter compared to the third quarter
last year.

For the nine months ended November 30, 1996, the net loss was $11,218,000 or
$.64 per share as compared to net income of $3,833,000 or $.22 per share for the
prior year. The loss of income was primarily attributable to the decrease in
sales volume and the decrease in gross profit rate as a percentage of net sales
from 25.4% for the nine months ended November 25, 1995 compared to 24.3% for the
nine months ended November 30, 1996. In addition, during the first quarter of
this year the Company had a one-time restructuring charge of $2.0 million, or
$.07 per share, principally related to severance pay.

NET SALES AND SERVICE REVENUES

Net sales and service revenues for the third quarter ended November 30, 1996
were $181,949,000, a decrease of $20,683,000 or 10.2% from the $202,632,000 for
last year's quarter ended November 25, 1995. Sales in the video category had the
largest decline of $11.4 million, while sales in major appliances dropped $4.2
million. Comparable store sales declined 16.3% from $188.9 million for the
quarter ended November 25, 1995 to $158.0 million for the quarter ended November
30, 1996.

Net sales and service revenues for the nine months ended November 30, 1996
decreased 11.7% to $485,998,000 from $550,346,000 for the nine months ended
November 25, 1995. Sales within all major product categories have declined this
year with the largest declines in color televisions, air conditioning and
computer and related accessories. Comparable store sales for this nine months
ended November 30, 1996 decreased $110.2 million to $424.4 million from $534.6
million for the comparable period last year.

Sales for both the third quarter and the nine months ended November 30, 1996
reflect not only the intensified competition in most of our markets, but also 
the overall soft retail environment for the consumer electronics, computer and
appliance industry.


                                       9
<PAGE>   10
GROSS PROFIT

Gross profit of $42,107,000 (23.1% of sales) for the third quarter of this year
represents a decrease of $8,313,000 or 16.5% from last year's third quarter
amount of $50,420,000 (24.9% of sales). The gross profit percentage reflected a
decline in most product categories this year versus last year due to the highly
competitive environment and the promotional nature of the Fall selling season.

For the first nine months of this fiscal year, gross profit of $118,217,000
(24.3% of sales) was 15.4%, or $21,454,000, lower than last year's amount of
$139,671,000 (25.4% of sales). The decline in gross profit percentage this year
versus last year was attributable to the soft retail environment in the consumer
electronics industry combined with the intense promotional environment due to
the increased number of competitors in our markets.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses were $47,335,000 for the quarter
ended November 30, 1996 versus $46,937,000 for last year's third quarter, an
increase of $398,000 or 0.8%. The increase in expense is primarily attributable
to the greater number of stores in operation for the full quarter this year as
compared to last year, as well as, higher advertising expense. As a percentage
of sales, selling, general and administrative expense increased to 26.0% versus
23.2% last year, and is primarily attributed to the decline in sales volume in
the third quarter versus last year.

During the first nine months of this year, selling, general and administrative
expenses increased $356,000 to $131,210,000 from $130,854,000 the prior year. As
a percentage of sales, selling, general and administrative expense was 27.0%
versus 23.8%, respectively, with the increase relating to the decline in sales
volume for the first nine months of this year versus last year.

OTHER INCOME/EXPENSES

Interest expense increased $371,000 for the third quarter and $372,000 for the
first nine months this year versus last year due to the increase in average
outstanding short-term borrowings for the same period.

INCOME TAXES

The provision for income taxes is based on the current estimate of the annual
effective tax rate for the year (40.2%) which has reduced slightly from last
year, primarily due to a decrease in the effective state tax rate.



                                       10
<PAGE>   11
                               FINANCIAL CONDITION

The Company's current ratio is 1.4 as compared to 2.5 as of March 2, 1996. The
major reason for the decrease in the current ratio to 1.4 is the seasonal
increase in the trade accounts payable and is comparable to last year's third
quarter current ratio of 1.6. Inventory had increased by $78,953,000 from March
2, 1996 in preparation for the Christmas selling season, and the additional new
stores opened this year versus last year, and was largely financed by increases
in short-term borrowings and trade payables.

In December the Company signed a new revolving credit agreement (see Note 3 in
the Financial Statements) which allowed the Company to retire the existing
senior note and revolving credit borrowings. This collateralized agreement, due
in February of 2000, allows the Company to borrow a maximum of $100,000,000 
depending on inventory levels.

The Company opened a store in Dayton, Ohio, in the first quarter of this year, a
store in Charleston, West Virginia, during the second quarter, and stores in
Beckley and Huntington, West Virginia, in the third quarter of this year. The
Company replaced the existing stores in North Randall, Chillicothe, and Newark,
Ohio, with larger, better located stores in the third quarter of this year. The
Company expects capital expenditures for the remainder of the year to be
approximately $1,500,000 and anticipates covering these requirements using cash
on hand, cash flow from operations, the anticipated sales of non-productive
property, and borrowings on the revolving line of credit.

The Company has announced plans to withdraw from the New York, Dayton and
Springfield, Ohio markets prior to its fiscal year end of March 1, 1997, and
will incur a fourth quarter non-recurring restructuring charge. The Company will
close three stores in suburban Buffalo, New York, two stores in suburban
Rochester, New York, three stores in the greater Dayton, Ohio area and one
location in Springfield, Ohio. The Company indicated that the nine stores to be
closed generated $74 million, or 15% of Sun's year to date consolidated sales,
and recorded a fiscal 1997 year to date operating loss of approximately $2
million, before considering corporate expense allocations.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The matters discussed above include forward-looking statements that involve
risks and uncertainties, including, but not limited to, a statement with respect
to a non-recurring restructuring charge and the impact of store closings on cash
flow. Such statements are subject to changes based on various important factors
which may be beyond the Company's control, such as, but not limited to, the
review and computation to determine the amount of the non-recurring
restructuring charge, the timing and expense associated with the store closings,
changes in consumer spending patterns, consumer preferences and overall economic
conditions, the impact of competition and pricing, changes in weather patterns,
availability of suitable stores locations at appropriate terms, ability to
develop new merchandise and ability to hire and train associates.


                                       11
<PAGE>   12



                          PART II. - OTHER INFORMATION

In accordance with the instruction to Part II, the other specified items in this
part have been omitted because they are not applicable or the information has
been previously reported.


Item 6.           Exhibits and Reports on Form 8-K

         (a)      Exhibits      Descriptions

                   10.          Revolving Credit Agreement

                   11.          Computation of Net (Loss)Income per Common Share

                   27.          Financial Data Schedule

         (b)      Reports on Form 8-K

                  None


                                       12
<PAGE>   13




                       SUN TELEVISION AND APPLIANCES, INC.

                                    SIGNATURE


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.

                                             SUN TELEVISION AND APPLIANCES, INC.
                                                        (Registrant)




                                             By     /s/ Steven A. Martin
                                                --------------------------------
                                                Steven A. Martin, Executive Vice
                                                President, Treasurer  and Chief 
                                                Financial Officer *


Date:  January 13, 1997





* Mr. Martin is the principal financial officer and has been duly authorized to
  sign on behalf of the Registrant.




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