UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended October 2, 1999                    Commission File No. 0-06882


                              URT INDUSTRIES, INC.
             (Exact Name of Registrant as Specified in Its Charter)


        Florida                                              59-1167907
(State or Other Jurisdiction of                       (I.R.S. Employer I.D. No.)
Incorporation or Organization)

        1180 E Hallandale Beach Blvd., Hallandale, FL           33009
           (Address of Principal Executive Offices)           (Zip Code)


Registrant's telephone number, including area code: (954) 454-5554


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  registrants  were
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days.

                               YES_X_      NO ___

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


At December 9, 1999, there were outstanding:


10,857,068 shares of Class A common stock
1,348,141 shares of Class B common stock


<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

                                      Index


PART I. FINANCIAL INFORMATION

   Item 1.  Financial Statements

       Condensed  Consolidated  Balance Sheets -October 2, 1999,
        April 3, 1999 and September 26, 1998 (unaudited)                       3

       Condensed Consolidated Statements of Operations and Retained
         Deficit - Three Months Ended October 2, 1999
         and September 26, 1998 (Unaudited)
                                                                               4

       Condensed  Consolidated  Statements of Operations
         and Retained  Deficit - Six Months Ended October 2, 1999 and
         September 26, 1998 (Unaudited)                                        5

       Condensed  Consolidated  Statements  of Cash Flows -
          Six Months Ended October 2, 1999 and
          September 26, 1998 (Unaudited)                                       6

       Notes to Condensed Consolidated Financial Statements                    7

   Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations                                        9

PART II. OTHER INFORMATION

     Item 6.  Exhibits and Reports on Form 8-K                                11

SIGNATURES                                                                    12


                                       2
<PAGE>


                         PART I - FINANCIAL INFORMATION
                    Item 1. Consolidated Financial Statements
                      URT INDUSTRIES, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
             October 2, 1999, April 3, 1999 and September 26, 1998
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                 October 2,     April 3,    September 26,
                                                                                   1999           1999            1998
                                                                                -----------    -----------    -----------
<S>                                                                             <C>              <C>            <C>
                                     Assets
Current assets:
    Cash and cash equivalents                                                   $   664,748        927,982        694,981
    Marketable investment securities                                                     --        439,640        663,313
    Inventories                                                                   2,265,410      2,309,600      2,643,727
    Current portion due from officers/shareholders                                   24,029         42,769         45,302
    Prepaid expenses and other current assets                                       192,492        291,809        281,567
                                                                                -----------    -----------    -----------
            Total current assets                                                  3,146,679      4,011,800      4,328,890
Property and equipment, net                                                       1,234,081      1,249,289      1,404,942
Due from officers/shareholders                                                        1,170          3,385         18,003
Other assets                                                                        231,896        195,560        208,295
                                                                                -----------    -----------    -----------
                                                                                $ 4,613,826      5,460,034      5,960,130
                                                                                ===========    ===========    ===========
                      Liabilities and Shareholders' Equity

Current liabilities:
    Current portion of long-term obligations                                    $    75,494        108,280        573,038
    Accounts payable                                                              2,121,371      2,240,109      2,093,655
    Accrued liabilities                                                             604,815        706,407        909,415
                                                                                -----------    -----------    -----------
            Total current liabilities                                             2,801,680      3,054,796      3,576,108
Long-term obligations                                                               443,042        469,759        518,625
Deferred rent                                                                        84,043         63,030         62,950
Minority interest in a subsidiary                                                     2,745         49,121         40,020
                                                                                -----------    -----------    -----------
            Total liabilities                                                     3,331,510      3,636,706      4,197,703
                                                                                -----------    -----------    -----------
Shareholders' equity:
    Common stock, $.01 par value; 30,000,000 shares authorized;
       15,317,454 shares issued                                                     153,175        153,175        153,175
    Additional paid-in capital                                                    5,542,152      5,542,152      5,542,152
    Retained deficit                                                             (3,394,676)    (2,856,923)    (2,928,275)
    Unrealized gain on securities available for sale                                     --          3,259         13,710
                                                                                -----------    -----------    -----------
                                                                                  2,300,651      2,841,663      2,780,762
    Treasury stock, 3,159,245 common shares, at cost                             (1,018,335)    (1,018,335)    (1,018,335)
                                                                                -----------    -----------    -----------
            Total shareholders' equity                                            1,282,316      1,823,328      1,762,427
Commitments and contingencies
                                                                                -----------    -----------    -----------
                                                                                $ 4,613,826      5,460,034      5,960,130
                                                                                ===========    ===========    ===========
</TABLE>

See accompanying notes to condensed consolidated financial statements.


                                       3
<PAGE>



                      URT INDUSTRIES, INC. AND SUBSIDIARIES
      Condensed Consolidated Statements of Operations and Retained Deficit
            Three months ended October 2, 1999 and September 26, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            October 2,   September 26,
                                                              1999            1998
                                                           -----------    -----------
<S>                                                        <C>              <C>
Net sales                                                  $ 3,426,062      3,924,914
                                                           -----------    -----------
Costs and expenses:
    Cost of sales                                            1,958,344      2,336,793
    Selling, general and administrative expenses             1,751,178      1,900,808
    Depreciation and amortization                               49,228         58,963
                                                           -----------    -----------
                                                             3,758,750      4,296,564
          Loss from operations                                (332,688)      (371,650)
                                                           -----------    -----------
Other (expense) income:
    Interest expense                                           (14,198)       (27,571)
    Interest income                                             21,864          9,661
                                                           -----------    -----------
                                                                 7,666        (17,910)
                                                           -----------    -----------
          Loss before minority interest                       (325,022)      (389,560)
Minority interest in net loss of consolidated subsidiary       (27,316)       (20,839)
                                                           -----------    -----------
          Net loss                                            (297,706)      (368,721)
Retained deficit, beginning of period                       (3,096,970)    (2,559,554)
                                                           -----------    -----------
Retained deficit, end of period                             (3,394,676)    (2,928,275)
                                                           ===========    ===========
Basic and diluted loss per share                           $     (0.02)         (0.03)
                                                           ===========    ===========
</TABLE>


See accompanying notes to condensed consolidated financial statements.



                                       4
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES
      Condensed Consolidated Statements of Operations and Retained Deficit
             Six months ended October 2, 1999 and September 26, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           October 2,    September 26,
                                                               1999           1998
                                                           -----------    -----------
<S>                                                        <C>              <C>
Net sales                                                  $ 7,084,201      7,794,674
                                                           -----------    -----------
Costs and expenses:
    Cost of sales                                            4,134,672      4,655,597
    Selling, general and administrative expenses             3,439,500      3,742,518
    Depreciation and amortization                               97,009        117,509
                                                           -----------    -----------
                                                             7,671,181      8,515,624
          Loss from operations                                (586,980)      (720,950)
                                                           -----------    -----------
Other (expense) income:
    Interest expense                                           (28,705)       (57,387)
    Interest income                                             31,556         25,025
                                                           -----------    -----------
                                                                 2,851        (32,362)
                                                           -----------    -----------
          Loss before minority interest                       (584,129)      (753,312)
Minority interest in net loss of consolidated subsidiary       (46,376)       (35,276)
                                                           -----------    -----------
          Net loss                                            (537,753)      (718,036)
Retained deficit, beginning of period                       (2,856,923)    (2,210,239)
                                                           -----------    -----------
Retained deficit, end of period                            $(3,394,676)    (2,928,275)
                                                           ===========    ===========
Basic and diluted loss per share                                 (0.04)         (0.06)
                                                           ===========    ===========
</TABLE>


See accompanying notes to condensed consolidated financial statements.


                                       5
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
             Six months ended October 2, 1999 and September 26, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      October 2,   September 26,
                                                                         1999           1998
                                                                       ----------    ----------
<S>                                                                    <C>                <C>
Cash flows from operating activities:
    Net loss                                                           $ (537,753)     (718,036)
                                                                       ----------    ----------
    Adjustments to reconcile net loss to net cash used in
      operating activities:
          Depreciation and amortization                                    97,009       117,509
          Deferred rent                                                    21,013           116
          Minority interest in net loss of consolidated subsidiary        (46,376)       12,724
          Change in assets and liabilities affecting cash flows from
            operating activities:
               (Increase) decrease in:
                   Inventories                                             44,190      (210,294)
                   Prepaid expenses and other current assets               99,317       105,481
                   Other assets                                           (36,336)       (6,643)
               Increase (decrease) in:
                   Accounts payable                                      (118,738)       78,981
                   Accrued liabilities                                   (101,592)        8,090
                                                                       ----------    ----------
                     Net cash used in operating activities               (579,266)     (612,072)
                                                                       ----------    ----------
Cash flows from investing activities:
    Purchase of property and equipment                                    (81,802)     (158,118)
    Repayment of due from officers/shareholders                            20,955        19,719
    Purchase of marketable investment securities                               --      (172,658)
    Sales of marketable investment securities                             436,381       555,795
                                                                       ----------    ----------
                   Net cash provided by investing activities              375,534       244,738
                                                                       ----------    ----------
Cash flows from investing activities:
    Repayment of long-term debt                                           (59,502)     (218,783)
                                                                       ----------    ----------
                   Net cash used in financing activities                  (59,502)     (218,783)
                                                                       ----------    ----------
                   Net (decrease) in cash and cash equivalents           (263,234)     (586,117)
Cash and cash equivalents, beginning of period                            927,982     1,281,098
                                                                       ----------    ----------
Cash and cash equivalents, end of period                               $  664,748       694,981
                                                                       ==========    ==========
Supplemental disclosures of cash flow information:
    Cash paid during the period for interest                           $   28,705         9,707
                                                                       ==========    ==========
</TABLE>


See accompanying notes to condensed consolidated financial statements.



                                       6
<PAGE>



                      URT INDUSTRIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

                     October 2, 1999 and September 26, 1998
                                   (Unaudited)


(1)  Basis of Financial Statement Presentation

     The accompanying unaudited condensed consolidated financial statements have
     been  prepared  in  accordance  with the  instructions  to Form  10-Q  and,
     therefore,  do not include all  footnotes and  information  necessary for a
     fair  presentation  of financial  position,  results of operations and cash
     flows in conformity with generally accepted accounting principles. However,
     in the opinion of management,  all adjustments  (consisting  only of normal
     recurring accruals) necessary for a fair presentation have been made.

     The  consolidated   financial   statements  include  the  accounts  of  URT
     Industries,   Inc.  (the  "Parent")  and  its  wholly  owned   nonoperating
     subsidiary,   and  its   majority-owned   operating   subsidiary,   Peaches
     Entertainment  Corporation  (87.5 percent of the outstanding stock of which
     was  owned  by  the  Parent,  as  of  October  2,  1999).  All  significant
     intercompany  accounts  have  been  eliminated.  Reference  to the  Company
     encompasses all or any of the aforementioned entities.

     It is suggested  that the  accompanying  unaudited  condensed  consolidated
     financial  statements be read in conjunction with the financial  statements
     and notes included in the Company's annual report on Form 10-K for the year
     ended April 3, 1999.

     The results of operations for the six months ended October 2, 1999, are not
     necessarily indicative of the operating results to be expected for the year
     ending April 1, 2000.  The Company's  business is seasonal in nature,  with
     the highest sales and earnings historically  occurring in the third quarter
     of the fiscal year, which includes the holiday selling season.

     Inventories,  which consist of compact discs,  tapes and  accessories,  are
     stated at the lower of cost (principally average) or market.

     Certain  reclassifications  have been made to the (unaudited) September 26,
     1998 quarterly financial information to conform to the presentation used in
     the (unaudited) October 2, 1999 financial information.

(2)  Earnings Per Share

     In December  1997,  the Company  adopted the  provisions  of  Statement  of
     Financial  Accounting  Standards No. 128,  "Earnings Per Share" ("Statement
     128"),  which  establishes  new  standards  for  computing  and  presenting
     earnings per share  ("EPS").  Earnings per share for all prior periods have
     been restated to reflect the provisions of this Statement.

     Basic and diluted  earnings (loss) per share have been computed by dividing
     net earnings (loss),  by the weighted average number of shares  outstanding
     during the period.


                                       7
<PAGE>



                      URT INDUSTRIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

                     October 2, 1999 and September 26, 1998
                                   (Unaudited)


       Basic and diluted loss per share were calculated as follows:

                                                 Six months       Six months
                                                    ended            Ended
                                               ----------------   -----------
                                                 October 2,      September 26,
                                                   1999               1998

Basic and diluted:
     Net loss                                 $        537,753          718,036
                                              ================      ===========

     Weighted average shares                        12,158,209       12,158,209
                                              ================      ===========

Basic and diluted loss per share                         (0.04)           (0.06)
                                              ================      ===========


(3)  Marketable Securities

     The  Company's  marketable  securities  consist  of equity  securities  and
     Treasury   bills,   and  are  considered   available  for  sale  with  cost
     approximating    fair    market    value.    Securities    classified    as
     available-for-sale  are reported at fair market value with unrealized gains
     and losses included in stockholders' equity.  Realized gains and losses are
     included in interest and other income.

(4)  Income Taxes

     The Company follows Statement of Financial Accounting Standard ("SFAS") No.
     109,  Accounting  for Income Taxes.  The Company files a  consolidated  tax
     return  with its  subsidiaries.  Any  applicable  tax charge or credits are
     allocated  on a  separate  return  basis.  For the six month  period  ended
     October 2, 1999,  there was no (benefit)  provision for income taxes as the
     Company has excess net operating loss  carryforwards for federal income tax
     purposes.



                                       8
<PAGE>
                              URT INDUSTRIES, INC.


Item  2.      Management's  Discussions  and  Analysis  of  Financial  Condition
              and  Results  of  Operations  for the Three  Months and Six Months
              Ended October 2, 1999,  Compared to the Six Months ended September
              26, 1998.

From  time to  time,  the  Company  may make  certain  statements  that  contain
"forward-looking"  information (as defined in the Private Securities  Litigation
Reform  Act  of  1995).  Words  such  as  "believe,"  "anticipate,"  "estimate,"
"project" and similar expressions are intended to identify such  forward-looking
statements.  Forward-looking  statements may be made by management  orally or in
writing,  including,  but not  limited  to, in press  releases,  as part of this
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  and as a part of  other  sections  of this  Annual  Report  or other
filings.   Readers  are  cautioned   not  to  place  undue   reliance  on  these
forward-looking  statements,  which speak only as of their respective dates, and
are subject to certain risks, uncertainties and assumptions.  Should one or more
of these risks or  uncertainties  materialize,  or should any of the  underlying
assumptions prove incorrect, actual results of current and future operations may
vary materially from those anticipated, estimated or projected.

                              RESULTS OF OPERATIONS

Sales. The Company's net sales decreased during the second quarter ended October
2,  1999 of the  Company's  fiscal  year  ended  April 1,  2000 by 12.7  percent
compared  to the second  quarter  of fiscal  1999.  A 5.6  percent  decrease  is
primarily  attributable to the fact that the Company  operated one less store as
well as a 7.1 percent  comparable store decline.  Sales for the twenty-six weeks
ended  October 2, 1999 were down by 9.1 percent  which is  primarily  due to the
fact that comparable  sales for the twenty-six  weeks ended October 2, 1999 were
down  5.7  percent  and a 3.4  percent  decrease  attributable  to  the  Company
operating one less store.

Cost of  Sales.  The  Company's  cost of  sales  as a  percentage  of net  sales
decreased  from 59.5  percent  in the  previous  year's  second  quarter to 57.1
percent  for the second  quarter  ended  October  2, 1999,  as well as from 59.7
percent in the  previous  year's first  twenty-six  weeks to 58.4 percent in the
current year's  twenty-six weeks ended October 2, 1999. The decreases in cost of
sales as a  percentage  of sales are  primarily  attributable  to  increases  in
certain retail prices.

Selling, General and Administrative.  Selling, general and administrative (SG&A)
expenses,  including  depreciation,  in the second  quarter of 2000  fiscal year
decreased  by 8.1 percent  compared to the second  quarter of 1999 fiscal  year.
SG&A expenses,  including  depreciation  for the first six months of 2000 fiscal
year  decreased  by 8.4 percent  compared to the first six months of 1999 fiscal
year.  The  above  decreases  are  primarily  attributable  to the fact that the
Company  operated one less store in the first six months of fiscal 2000, as well
as a reduction in corporate overhead. SG&A expenses as a percentage of net sales
increased to 52.5 percent for the second  quarter ended October 2, 1999 compared
to 49.9  percent  in the  prior  year  second  quarter  and SG&A  expenses  as a
percentage of net sales  increased  from 49.5 percent in the first six months of
fiscal 1999 to 49.9 percent in the first six months of fiscal 2000.

Net Loss.  The Company  incurred a net loss of  approximately  $298,000  for the
second  quarter ended  October 2, 1999  compared to a net loss of  approximately
$369,000 for the second  quarter ended  September 26, 1998. The net loss for the
twenty-six weeks ended October 2, 1999 was approximately  $538,000 compared to a
net loss of approximately  $718,000 for the twenty-six weeks ended September 26,
1998.  The decrease in net loss is primarily  attributable  to the fact that the
twenty-six weeks ended September 26, 1998 included costs associated with opening
of one new store. The reduction in net loss is also  attributable to an increase
in gross  profit  percentage,  a decrease in interest  expense,  a reduction  in
corporate overhead offset by a decrease in comparable store sales.


                                       9
<PAGE>


                         LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY AND CAPITAL RESOURCES

Liquidity  and  Capital  Resources.  Cash  generated  from  operations  and cash
equivalents   are  the  Company's   primary  source  of  liquidity.   Management
anticipates  that the cash generated from  operations,  cash equivalents on hand
and financing will provide  sufficient  liquidity to maintain  adequate  working
capital for operations. Management anticipates that it would use funds generated
from  operations  as well as  possible  financing,  for the  opening  of any new
stores,  which  it may  plan to open  this  fiscal  year.  For a  discussion  of
uncertainties affecting the Company's liquidity and capital resources,  see note
3 to the financial statements on form 10-K for the year ended April 3, 1999.

Long-Term Obligations. At October 2, 1999, the Company had long-term obligations
of  $443,042.  Management  anticipates  that its ability to repay its  long-term
obligations  will be  satisfied  primarily  through  funds  generated  from  its
operations.

                                  OTHER MATTERS

Impact of  Inflation.  Although  the Company  cannot  accurately  determine  the
precise  effect of  inflation  on its  operations,  management  does not believe
inflation  has had a material  effect on the results of  operations  in the last
three  fiscal  years.  When the cost of  merchandise  items has  increased,  the
Company has been able to pass the increase on to its customers.

Seasonality.  The  Company's  business is  seasonal in nature,  with the highest
sales and earnings  historically  occurring in the third fiscal  quarter,  which
includes the Christmas selling season.

Year 2000  Compliance.  The Year 2000 Issue is the result of  computer  programs
being written using two digits rather than four to define the  applicable  year.
Any of the Company's  computer  programs that have  data-sensitive  software may
recognize a date using "00" as year 1900  rather than the year 2000.  This could
result in a system failure or miscalculations causing disruptions of operations.
The Company has assessed that it is required to upgrade portions of its software
which was  originally  purchased  from  outside  vendors,  so that its  computer
systems will properly  utilize dates beyond  December 31, 1999.  The Company has
purchased its upgraded software and testing and  implementation was completed in
November  1999.  The  cost  of  the  upgrade  of  the  Company's   software  was
approximately  $20,000.  The cost of new  hardware  was  approximately  $40,000.
Additionally,  the Company is dependent on basic public infrastructure,  such as
telecommunications  and utilities,  in order to function  normally.  Significant
long-term  interruptions of this infrastructure  could have an adverse effect on
the operations of the Company. Additionally, the Company must rely on assurances
from suppliers and vendors that their information  systems and key services will
be Year 2000 compliant,  and the Company currently has no practical alternatives
if these major suppliers experience problems. Therefore, even if the Company, in
a timely manner,  successfully  implements the necessary changes to its computer
systems,  some  problems may not be  identified  or corrected in time to prevent
material  adverse  consequences or business  interruptions  to the Company,  and
there can be no  absolute  assurance  that there will not be a material  adverse
effect on the Company's operations, liquidity or financial condition as a result
of the Year 2000 issue.



                                       10
<PAGE>

                              URT INDUSTRIES, INC.

                                OTHER INFORMATION


PART II

     Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

          27.0 Financial Data Schedule

     (b)  Reports on Form 8-K

          None


                                       11
<PAGE>

                              URT INDUSTRIES, INC.

                                   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 thereunto duly authorized.


                                  URT INDUSTRIES, INC.
                                  Registrant


Date:  ______________             --------------------------------------------
                                  Allan Wolk, Chairman of the Board, President
                                  (Principal Executive Officer)




Date:  ______________             ---------------------------------------------
                                  Jason Wolk, Executive Vice President,
                                  Chief Financial Officer
                                  (Principal Financial and Accounting Officer)



                                       12