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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                 for the Twenty-six Weeks Ended March 25, 2001

             [ ] 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 333-24939

                              THE FONDA GROUP, INC.
             (Exact name of registrant as specified in its charter)

           Delaware                                        13-3220732
(State or other jurisdiction of                          (IRS Employer
incorporation or organization)                         Identification No.)

2920 North Main Street, Oshkosh, Wisconsin                   54901
  (Address of principal executive offices)                 (Zip Code)

        Registrant's telephone number, including area code: 920/235-9330


         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 [   ]


       The number of shares outstanding of the Registrant's common stock
                             as of April 20, 2001:
                   Common Stock, $0.01 par value - 100 shares


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<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.       FINANCIAL STATEMENTS

                              THE FONDA GROUP, INC.
                           CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                (Unaudited)
                                                                 March 25,          September 24,
                                                                    2001                2000
                                                               -------------      -----------------
<S>                                                            <C>                <C>

                                     Assets
Current assets:
  Cash and cash equivalents                                      $     491            $   1,413
  Receivables, less allowances of $1,831 and $1,459,
    respectively                                                    48,475               50,927
  Inventories                                                       56,408               63,145
  Deferred income taxes                                              7,644                8,044
  Refundable income taxes                                              298                  298
  Spare parts                                                        2,565                2,523
  Other current assets                                               6,145                6,328
                                                                 ----------           ----------
    Total current assets                                           122,026              132,678

Property, plant and equipment, net                                  51,396               49,280

Goodwill, net                                                       21,354               18,373
Due from SF Holdings                                                18,033               18,441
Other assets                                                        10,014               11,604
                                                                 ----------           ----------

    Total assets                                                 $ 222,823            $ 230,376
                                                                 ==========           ==========

                      Liabilities and Shareholder's Equity
Current liabilities:
  Accounts payable                                               $   9,161            $  15,679
  Accrued payroll and related costs                                  8,106               10,469
  Other current liabilities                                         18,313               21,203
  Current portion of long-term debt                                 41,611               41,425
                                                                 ----------           ----------
    Total current liabilities                                       77,191               88,776


Deferred income taxes                                                4,484                5,043
Long-term debt                                                     123,970              120,453
Other liabilities                                                    1,162                1,212
                                                                 ----------           ----------

    Total liabilities                                              206,807              215,484
                                                                 ----------           ----------

Commitments and contingencies  (See Notes)

Shareholder's equity:
  Common stock - par value $.01 per share; 1,000 shares
    authorized; 100 shares issued and outstanding                        -                    -
  Additional paid-in capital                                         1,037                1,022
  Retained earnings                                                 15,004               13,895
  Accumulated other comprehensive loss                                 (25)                 (25)
                                                                 ----------           ----------

    Total shareholder's equity                                      16,016               14,892
                                                                 ----------           ----------

    Total liabilities and shareholder's equity                   $ 222,823            $ 230,376
                                                                 ==========           ==========
</TABLE>


          See accompanying Notes to Consolidated Financial Statements.

                                       2
<PAGE>
                              THE FONDA GROUP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                     For the          For the          For the          For the
                                                     Thirteen         Thirteen        Twenty-six       Twenty-six
                                                    weeks ended      weeks ended      weeks ended      weeks ended
                                                     March 25,        March 26,        March 25,        March 26,
                                                       2001             2000             2001             2000
                                                  ---------------  ---------------  ---------------  ---------------
<S>                                               <C>              <C>              <C>              <C>
Net sales                                            $  79,773        $  78,063        $ 179,939        $ 175,635
Cost of sales                                           65,734           64,142          146,882          142,814
                                                     ----------       ----------       ----------       ----------

  Gross profit                                          14,039           13,921           33,057           32,821

Selling, general and administrative expenses            11,044           11,293           23,453           24,292
Other (income), net                                       (140)            (149)            (197)            (224)
                                                     ----------       ----------       ----------       ----------

  Operating income                                       3,135            2,777            9,801            8,753

Interest expense, net of interest income of $27,
  $136, $39 and $219, respectively                       3,824            3,953            7,853            8,153
                                                     ----------       ----------       ----------       ----------

  Income (loss) before income tax expense
    (benefit) and extraordinary loss                      (689)          (1,176)           1,948              600

Income tax expense (benefit)                              (227)            (476)             839              234
                                                     ----------       ----------       ----------       ----------

  Income (loss) before extraordinary loss                 (462)            (700)           1,109              366

Extraordinary loss on debt extinguishment (net
  of income taxes of $350)                                   -              525                -              525
                                                     ----------       ----------       ----------       ----------

  Net income (loss)                                  $    (462)       $  (1,225)       $   1,109        $    (159)
                                                     ==========       ==========       ==========       ==========
</TABLE>

          See accompanying Notes to Consolidated Financial Statements.

                                       3
<PAGE>
                              THE FONDA GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                                   For the Twenty-six      For the Twenty-six
                                                                      weeks ended             weeks ended
                                                                        March 25,               March 26,
                                                                          2001                    2000
                                                                 ----------------------  ----------------------
<S>                                                              <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES

  Net income (loss)                                                     $  1,109                $    (159)
  Adjustments to reconcile net income (loss) to net cash provided
  by operating activities:
    Depreciation and amortization                                          3,395                    3,658
    Deferred income tax benefit                                             (159)                    (131)
    Loss on sale of assets                                                    87                       12
  Changes in operating assets and liabilities (net of business
  acquisition:
    Receivables                                                            3,401                      114
    Inventories                                                            8,980                   (4,165)
    Accounts payable and accrued expenses                                (14,201)                   2,733
    Other, net                                                             1,486                    1,463
                                                                        ---------               ----------
    Net cash provided by operating activities                              4,098                    3,525
                                                                        ---------               ----------

CASH FLOWS FROM INVESTING ACTIVITIES

  Additions to property, plant and equipment                              (2,540)                    (782)
  Payment for business acquisition                                        (6,654)                       -
  Due to/from SF Holdings                                                    408                  (31,692)
  Proceeds from sale of property, plant and equipment                         63                    1,357
                                                                        ---------               ----------
    Net cash used in investing activities                                 (8,723)                 (31,117)
                                                                        ---------               ----------

CASH FLOWS FROM FINANCING ACTIVITIES

  Net (repayments) borrowings under revolving credit  facilities            (262)                  28,561
  Borrowing for business acquisition                                       5,000                        -
  Net repayments of other debt                                            (1,035)                    (261)
                                                                        ---------               ----------
    Net cash provided by financing activities                              3,703                   28,300
                                                                        ---------               ----------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                        (922)                     708

CASH AND CASH EQUIVALENTS, beginning of period                             1,413                      624
                                                                        ---------               ----------

CASH AND CASH EQUIVALENTS, end of period                                $    491                $   1,332
                                                                        =========               ==========


SUPPLEMENTAL CASH FLOW DISCLOSURES:

    Interest paid                                                       $  7,989                $   8,104
                                                                        =========               ==========

    Income taxes paid (refunded)                                        $    245                $     (49)
                                                                        =========               ==========

</TABLE>
          See accompanying Notes to Consolidated Financial Statements.


                                       4
<PAGE>
                              THE FONDA GROUP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


(1)  BASIS OF PRESENTATION

         The information  included in the foregoing interim financial statements
of The Fonda Group,  Inc. (the  "Company")  are unaudited but, in the opinion of
management,  include  all  adjustments  (consisting  only  of  normal  recurring
adjustments  and  accruals)  which the Company  considers  necessary  for a fair
presentation of the operating results for these periods. Results for the interim
periods are not  necessarily  indicative  of results for the entire year.  These
condensed financial  statements should be read in conjunction with the Company's
financial  statements and notes thereto  included in the Company's annual report
on Form 10-K for the fiscal year ended September 24, 2000.  Certain prior period
amounts have been  reclassified to conform to current period  presentation.  The
Company is a wholly-owned subsidiary of SF Holdings Group, Inc. ("SF Holdings").


(2)  RECENTLY ISSUED ACCOUNTING STANDARDS

         In June 1998, the Financial Accounting Standards Board issued Statement
of Financial  Accounting  Standard  ("SFAS") No. 133,  Accounting for Derivative
Instruments  and Hedging  Activities.  SFAS No. 133  establishes  accounting and
reporting  standards  for  derivative  instruments  and requires  that an entity
recognize all  derivatives at fair value in the balance  sheet.  The adoption of
SFAS No. 133 did not have a  significant  impact on the  consolidated  financial
statements.

         In December 1999, the Securities  and Exchange  Commission issued Staff
Accounting   Bulletin  ("SAB")  No.  101,   Revenue   Recognition  in  Financial
Statements.  SAB No. 101  establishes  accounting  and  reporting  standards for
revenue  recognition and requires that an entity not recognize  revenue until it
is realized or realizable and earned. The adoption of SAB No.101 did not have an
impact on the consolidated financial statements.


(3)  INVENTORIES

         The components of inventories are as follows (in thousands):

                                      (Unaudited)
                                       March 25,               September 24,
                                         2001                      2000
                                     -------------         -----------------

Raw materials and supplies             $ 15,718                  $ 19,723
Finished products                        40,319                    42,732
Work in progress                            371                       690
                                       --------                  --------
  Total inventories                    $ 56,408                  $ 63,145
                                       ========                  ========


(4)  BUSINESS ACQUISITION

         On September 25, 2000,  pursuant to an asset purchase  agreement  dated
August  9,  2000  (the   "Springprint   Agreement"),   the   Company   purchased
substantially  all of the property,  plant and  equipment,  intangibles  and net
working capital of Springprint Medallion, a division of Marcal Paper Mills, Inc.
("Springprint"). In addition, pursuant to the Springprint Agreement, the Company
has assumed  the  liabilities  and  obligations  of  Springprint  arising  under
contracts or leases that are either assets purchased by the Company or a part of
the accounts  payable.  The aggregate  purchase price for the assets and working
capital was $6.7 million.  The Springprint  acquisition has resulted in goodwill
of $3.6

                                       5
<PAGE>
million which is being amortized over 20 years. The Springprint  acquisition has
been accounted for under the purchase  method and the results have been included
in the consolidated statements of operations since the date of acquisition.


(5)  RELATED PARTY TRANSACTIONS

         All of the below referenced  affiliates are under the common control of
the Company's Chief Executive Officer or a director of the Company.

         During the  twenty-six  weeks ending  March 25, 2001,  the Company sold
$5.0 million of paper plates to Sweetheart Holdings Inc. ("Sweetheart") and $2.8
million of scrap paper to Fibre Marketing, LLC ("Fibre Marketing").  Included in
receivables as of March 25, 2001 are (i) $1.4 million due from Sweetheart,  (ii)
$1.1  million  due from  Fibre  Marketing  and (iii)  $0.2  million  due from SF
Holdings. Other sales to affiliates,  if any, during the twenty-six weeks ending
March 25, 2001 were not significant.

         During the  twenty-six  weeks ending  March 26, 2000,  the Company sold
$5.4 million of paper  plates and $0.5  million of  equipment  rental and shared
services  to  Sweetheart  and $3.1  million of scrap  paper to Fibre  Marketing.
Included  in  receivables  as of March 26,  2000 was (i) $1.2  million  due from
Sweetheart,  (ii) $1.0 million due from Fibre  Marketing  and (iii) $0.2 million
due from SF Holdings.  Other sales to affiliates,  if any, during the twenty-six
weeks ending March 26, 2000 were not significant.

         During  the  twenty-six  weeks  ending  March  25,  2001,  the  Company
purchased  (i) $8.6 million of paper cups from  Sweetheart  (ii) $0.6 million of
corrugated  containers  from Box USA Holdings,  Inc.  ("Box USA") and (iii) $0.4
million of travel services from Emerald Lady, Inc. Included in accounts payable,
as of March 25, 2001, was $1.4 million due to Sweetheart.  Other  purchases from
affiliates,  if any, during the twenty-six  weeks ending March 25, 2001 were not
significant.

         During  the  twenty-six  weeks  ending  March  26,  2000,  the  Company
purchased (i) $6.0 million of paper cups from  Sweetheart,  (ii) $0.9 million of
corrugated  containers  from Box USA and (iii) $0.2  million of travel  services
from Emerald Lady, Inc. Included in accounts payable,  as of March 26, 2000, was
$1.0 million due to Sweetheart.  Other purchases from affiliates, if any, during
the twenty-six weeks ending March 26, 2000 were not significant.

         In Fiscal 1998, the Company  entered into an agreement with SF Holdings
whereby the Company acquired for $7.0 million  substantially all of SF Holding's
rights under a Management  Services Agreement dated August 31, 1993, as amended,
and pursuant to which the Company has the right, subject to the direction of the
board of directors of Sweetheart,  to manage Sweetheart's day-to-day operations.
In  consideration  of the  Company's  performance  of  services,  the Company is
entitled  to receive  management  fees of $0.7  million,  $0.9  million and $1.1
million in the first, second and third years, respectively, and $1.6 million per
year for the remaining term of the Management  Services  Agreement.  The Company
believes that the terms of such  agreement are at least as favorable as those it
could  otherwise have obtained from unrelated  third parties and were negotiated
on an arm's length basis.  The $7.0 million  payment is included in other assets
and is being amortized over the term of such  agreement.  Management fee income,
net of amortization  was $0.3 million for the twenty-six  weeks ending March 25,
2001 and $0.2 million for the twenty-six weeks ending March 26, 2000.

         The Company  leases a building  in  Jacksonville,  Florida  from Dennis
Mehiel, the Company's Chief Executive Officer, on terms the Company believes are
no less favorable than could be obtained from independent third parties and were
negotiated on an arm's length basis.  Annual  payments  under the lease are $0.2
million  plus  annual  increases  based on changes in the  Consumer  Price Index
("CPI")  through  December 31, 2014.  In  addition,  Mr.  Mehiel can require the
Company to  purchase  the  facility

                                       6
<PAGE>
for $1.5  million,  subject to a CPI-based  escalation,  until July 31, 2006. In
Fiscal 1998,  the Company  terminated  its  operations  at this  facility and is
currently  subleasing  the entire  facility to an unrelated  third  party.  Rent
expense, net of sublease income on the portion of the premises subleased, is not
significant.

         During the  twenty-six  weeks ended March 26,  2000,  the Company  sold
certain paper cup machines to Sweetheart at a fair market value of $1.3 million.
The excess of the proceeds  from the sale over the  Company's  net book value of
such  equipment was recorded as a credit to equity of $0.9 million.  Independent
appraisals were obtained to determine the fairness of the sale price.


(6)  SF HOLDINGS STOCK COMPENSATION PLAN

         During  the  twenty-six  weeks  ended  March 25, 2001, SF Holdings, the
Company's  parent,  granted  options to purchase  shares of its common  stock to
certain employees of the Company. The options vest over a period of three years.
Certain of the  exercise  prices of the options were below the fair market value
of SF Holdings common stock at the date of the grant. During the vesting period,
these discounts of $0.1 million are being amortized as compensation  expense and
credited to  additional  paid-in  capital by the Company.  Amortization  expense
relating to SF Holding's stock options was $15 thousand for the twenty-six weeks
ended March 25, 2001.


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATION

         Forward-looking statements in this filing, including those in the Notes
to  Consolidated  Financial  Statements,  are made  pursuant  to the safe harbor
provisions  of the  Private  Securities  Litigation  Reform  Act of  1995.  Such
forward-looking  statements  are subject to risks and  uncertainties  and actual
results could differ materially.  Such risks and uncertainties  include, but are
not limited to, general  economic and business  conditions,  competitive  market
pricing,  increases in raw material costs,  energy costs and other manufacturing
costs,  fluctuations in demand for the Company's  products,  potential equipment
malfunctions  and  pending  litigation.  For  additional  information,  see  the
Company's annual report on Form 10-K for the most recent fiscal year.


General

         The Company, a wholly-owned  subsidiary of SF Holdings,  is a converter
and marketer of disposable paper foodservice products. On December 3, 1999, CEG,
an affiliate of the Company in the  disposable  party goods  products  business,
became an 87% owned subsidiary of SF Holdings  pursuant to a merger. On December
6, 1999,  pursuant to an asset purchase  agreement  entered into on November 21,
1999, the Company purchased the intangible assets of CEG, including domestic and
foreign trademarks,  patents, copyrights, and customer lists for $16 million. In
addition,  pursuant to the CEG Asset Purchase Agreement the Company subsequently
purchased  certain  inventory  and  acquired  other CEG  assets  for cash and in
exchange for outstanding  trade payables owed to the Company by CEG. As a result
of  this  transaction,   the  Company  markets,   manufactures  and  distributes
disposable party goods products directly to the specialty (party) channel of the
Company's  consumer  market.  The  companies  are  under  common  control,   and
therefore,  the  transaction  has  been  accounted  for in a manner  similar  to
pooling-of-interests. CEG's net assets and liabilities that were not acquired by
the Company  pursuant to the CEG Asset  Purchase  Agreement  were acquired by SF
Holdings and have been classified as "Due to/from SF Holdings".

         On  September  25, 2000,  pursuant to the  Springprint  Agreement,  the
Company  purchased  substantially  all of the  property,  plant  and  equipment,
intangibles  and net working  capital of  Springprint

                                       7
<PAGE>
Medallion,  a division of Marcal Paper Mills, Inc. In addition,  pursuant to the
Springprint  Agreement,  the Company has assumed the liabilities and obligations
of  Springprint  arising  under  contracts  or  leases  that are  either  assets
purchased  by the  Company  or a part of the  accounts  payable.  The  aggregate
purchase price for the assets and working capital was $6.7 million.


Thirteen  Weeks  Ended March 25, 2001 Compared to Thirteen Weeks Ended March 26,
2000 (Unaudited)

         Net  sales  increased  $1.7 million,  or 2.2%, to $79.8 million for the
thirteen weeks ending March 25, 2001, compared to $78.1 million for the thirteen
weeks ending March 26, 2000,  reflecting  an 8.4%  increase in average  realized
sales price  partially  offset by a 6.2% decrease in sales volume.  Net sales to
consumer  foodservice  customers increased 5.0%, resulting from a 10.6% increase
in average realized sales price,  partially offset by a decrease in sales volume
of 5.6%.  Net  sales to  institutional  foodservice  customers  decreased  1.3%,
resulting from a 6.0% increase in average realized sales price, partially offset
by a 7.3%  decrease  in  sales  volume.  Selling  prices  to both  consumer  and
institutional  customers were  positively  affected by increases in raw material
costs that were passed through to customers as well as more  competitive  market
conditions.  These favorable price increases were offset by lower volumes due to
competitive  market  conditions  and the  Company's  decision to reduce sales to
certain  consumer  customers   experiencing   deteriorating  credit  conditions;
however, these lower volumes were partially offset by additional volume from the
Springprint acquisition.

         Gross profit increased $0.1 million,  or 0.7%, to $14.0 million for the
thirteen weeks ending March 25, 2001, compared to $13.9 million for the thirteen
weeks  ending  March 26,  2000.  As a  percentage  of net  sales,  gross  profit
decreased  from 17.8% for the thirteen  weeks ending March 26, 2000 to 17.5% for
the thirteen  weeks ending March 25, 2001.  Gross profit for the thirteen  weeks
ending March 25, 2001 was positively  affected by increased selling prices which
were partially offset by higher raw material and energy costs.

         Selling,  general  and administrative  expenses decreased $0.3 million,
or 2.7%, to $11.0 million for the thirteen  weeks ending March 25, 2001 compared
to $11.3  million for the thirteen  weeks  ending March 26, 2000  primarily as a
result of a decrease in the workforce resulting from the CEG consolidation and a
reduction in selling expenses.

         Other (income) expense, net was unchanged at income of $0.1 million for
the thirteen weeks ending March 25, 2001 and for the thirteen weeks ending March
26, 2000.

         Operating income increased $0.3 million,  or 10.7%, to $3.1 million for
the  thirteen  weeks  ending  March 25, 2001  compared  to $2.8  million for the
thirteen weeks ending March 26, 2000 due to the reasons discussed above.

         Interest  expense,  net of interest income  decreased $0.2 million,  or
5.0%,  to $3.8 million for the thirteen  weeks ending March 25, 2001 compared to
$4.0  million for the thirteen  weeks  ending  March 26, 2000.  For the thirteen
weeks ending March 25, 2001, the Company  realized  lower  interest  expense due
primarily to lower average interest rates.

         Income  tax  expense  (benefit)  decreased  $0.3  million, or 60%, to a
benefit of $0.2 million for the thirteen weeks ending March 25, 2001 compared to
a benefit of $0.5  million for the thirteen  weeks  ending  March 26, 2000.  The
effective  rate for the  thirteen  weeks ending March 25, 2001 was 32.9% and for
the thirteen weeks ending March 26, 2000 was 40.0%.

                                       8
<PAGE>

         Net income (loss)  increased $0.7 million,  or 58.3%, to a loss of $0.5
million for the thirteen  weeks ending March 25, 2001 compared to a loss of $1.2
million for the thirteen  weeks ending March 26, 2000, due to the reasons stated
above.


Twenty-six  Weeks  Ended March 25, 2001 Compared to Twenty-six Weeks Ended March
26, 2000 (Unaudited)

         Net  sales  increased $4.3 million,  or 2.4%, to $179.9 million for the
twenty-six  weeks  ending  March 25,  2001,  compared to $175.6  million for the
twenty-six  weeks ending March 26, 2000,  reflecting a 9.6%  increase in average
realized sales price  partially  offset by a 7.2% decrease in sales volume.  Net
sales to consumer  foodservice  customers increased 0.9%,  resulting from a 7.2%
increase in average  realized  sales  price,  partially  offset by a decrease in
sales volume of 6.3%. Net sales to institutional foodservice customers increased
4.6%, resulting from a 13.5% increase in average realized sales price, partially
offset by a 8.9% decrease in sales volume.  Selling  prices to both consumer and
institutional  customers were  positively  affected by increases in raw material
costs that were passed through to customers as well as more  competitive  market
conditions.  These favorable price increases were offset by lower volumes due to
competitive  market  conditions  and the  Company's  decision to reduce sales to
certain  consumer  customers   experiencing   deteriorating  credit  conditions;
however,  these lower volumes were partially  offset by additional  volumes from
the Springprint acquisition.

         Gross profit increased $0.3 million,  or 0.9%, to $33.1 million for the
twenty-six  weeks  ending  March 25,  2001,  compared  to $32.8  million for the
twenty-six  weeks  ending March 26, 2000.  As a percentage  of net sales,  gross
profit  decreased from 18.7% for the  twenty-six  weeks ending March 26, 2000 to
18.4% for the  twenty-six  weeks  ending  March 25,  2001.  Gross profit for the
twenty-six  weeks  ending  March 25, 2001 was  positively  affected by increased
selling  prices  which were  partially  offset by higher raw material and energy
costs.

         Selling, general and administrative expenses decreased $0.8 million, or
3.3%, to $23.5 million for the  twenty-six  weeks ending March 25, 2001 compared
to $24.3 million for the  twenty-six  weeks ending March 26, 2000 primarily as a
result of a decrease in the workforce resulting from the CEG consolidation and a
reduction in selling expenses.

         Other (income) expense, net was unchanged at income of $0.2 million for
the twenty-six weeks ending March 25, 2001 and the twenty-six weeks ending March
26, 2000.

         Operating income increased $1.0 million,  or 11.4%, to $9.8 million for
the  twenty-six  weeks  ending  March 25, 2001  compared to $8.8 million for the
twenty-six weeks ending March 26, 2000 due to the reasons discussed above.

         Interest  expense,  net of interest income  decreased $0.3 million,  or
3.7%, to $7.9 million for the twenty-six weeks ending March 25, 2001 compared to
$8.2 million for the twenty-six  weeks ending March 26, 2000. For the twenty-six
weeks ending March 25, 2001, the Company  realized  lower  interest  expense due
primarily to lower average interest rates.

         Income tax expense (benefit) increased  $0.6  million,  or 300%,  to an
expense of $0.8 million for the twenty-six  weeks ending March 25, 2001 compared
to a expense of $0.2 million for the twenty-six weeks ending March 26, 2000. The
effective rate for the twenty-six  weeks ending March 25, 2001 was 43.1% and for
the twenty-six weeks ending March 26, 2000 was 40.0%.

         Net income (loss)  increased  $1.3 million,  or 650%, to income of $1.1
million for the  twenty-six  weeks ending  March 25, 2001  compared to a loss of
$0.2 million for the twenty-six  weeks ending March 26, 2000, due to the reasons
stated above.

                                       9
<PAGE>
Liquidity And Capital Resources

         Historically,  the Company has relied on cash flow from operations, the
sale of assets and  borrowing  under its credit  facility to finance its working
capital requirements and capital  expenditures.  The Company expects to continue
this method of funding for its 2001 capital expenditures.

         Net cash  provided by operating  activities  increased  $0.6 million to
$4.1 million in the  twenty-six  weeks  ending  March 25, 2001  compared to $3.5
million  in the  twenty-six  weeks  ending  March 26,  2000.  This  increase  is
primarily due to a decrease in receivables as a result of better collections and
a decrease in inventory as a result of improved inventory management.

         Capital expenditures for the twenty-six weeks ended March 25, 2001 were
$2.5 million  compared to $0.8 million for the twenty-six weeks ending March 26,
2000.  Capital  expenditures  in the  twenty-six  weeks  ending  March 25,  2001
included  $1.7  million  for new  production  equipment  and  $0.8  million  for
renovations and conversions.

         The Company  has a $55 million  revolving  credit  facility  subject to
borrowing base  limitations.  The credit facility is  collateralized by eligible
accounts receivable,  inventories,  and certain general intangibles.  The credit
facility  matures on September 30, 2001.  Borrowings are available at the bank's
prime rate plus 0.25% or at LIBOR plus 2.25% at the election of the Company.  At
March 25, 2001,  $40.4 million was outstanding and $14.6 million was the maximum
remaining advance available based upon eligible collateral. Although the Company
intends to refinance this debt, there can be no assurances that the Company will
be able to obtain such  refinancing  on terms and  conditions  acceptable to the
Company.

         In addition to the revolving  credit  facility,  the  Company's  credit
facility  also  includes a term loan of $5  million.  This  amount is payable in
equal  monthly  installments  through the maturity  date of September  30, 2001.
Borrowings under the term loan bear interest,  at the Company's election,  equal
to the bank's prime rate plus 0.5% or LIBOR plus 2.5%.  The  proceeds  from this
term loan were used to partially finance the purchase of Springprint.

         Pursuant to the terms of the instruments  governing the indebtedness of
the  Company,  the  Company  is  subject to  certain  affirmative  and  negative
covenants customarily  contained in agreements of this type, including,  without
limitations  covenants  that  restrict,  subject  to  specified  exceptions  (i)
mergers,  consolidations,  asset  sales or changes in  capital  structure,  (ii)
creation or acquisition of subsidiaries, (iii) purchase or redemption of capital
stock or  declaration or payment of dividends or  distributions  on such capital
stock, (iv) incurrence of additional  indebtedness,  (v) investment  activities,
(vi)  granting  or  incurrence  of liens to  secure  other  indebtedness,  (vii)
prepayment or modification of the terms of subordinated indebtedness, and (viii)
engaging in transactions  with  affiliates.  In addition,  such debt instruments
restrict the Company's  ability to pay dividends or make other  distributions to
SF Holdings.  The credit facility also requires that certain financial covenants
are satisfied.

         Management  believes that cash generated by  operations,  combined with
amounts  available under the Company's  credit  facility,  will be sufficient to
meet the Company's  working  capital and capital  expenditure  needs in the next
twelve months.




Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         NONE

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                           PART II - OTHER INFORMATION


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K



         (a)  Reports on Form 8-K:

         No  reports  on  Form 8-K were filed during the twenty-six  weeks ended
         March 25, 2001

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                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, its duly authorized officer and principal financial officer.



                          THE FONDA GROUP, INC.
                          (registrant)

Date:  April 20, 2001       By:  /s/ Hans H. Heinsen
       --------------           --------------------
                            Hans H. Heinsen
                            Senior Vice President -
                            Chief Financial Officer and Treasurer

                            (Principal Financial and Accounting Officer and Duly
                            Authorized Officer)

                                       12
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