SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ------------------

                                   FORM 10-K/A
                                (AMENDMENT NO. 1)

(MARK ONE)

 [X]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 1997

                                       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 0-21940

                                 DONNKENNY, INC.
             (Exact name of registrant as specified in its charter)

             DELAWARE                        51-0228891
    (State or other jurisdiction of     (I.R.S. Employer Identification No.)
    incorporation or organization)

           1411 BROADWAY                              
         NEW YORK, NEW YORK                                   10018
     (Address of principal executive offices)               (Zip Code)

       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 730-7770

          SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:


                                                      NAME OF EACH EXCHANGE
         TITLE OF EACH CLASS                          ON WHICH REGISTERED
         -------------------                          ---------------------

            None                                         None

           SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

                          COMMON STOCK, $.01 PAR VALUE
                                (Title of Class)

         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 by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]

         The aggregate market value of the shares of Common Stock held by
non-affiliates of the Registrant, based on a closing sale price of the Common
Stock on the Nasdaq National Market on March 19, 1998 of $2.75 per share, was
approximately $38,706,085. As of March 19, 1998, 14,074,940 shares of Common
Stock of Registrant were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:  NONE.

-----------------------
1.  For purposes of this Report, the number of shares held by non-affiliates
    was determined by aggregating the number of shares held by the Officers 
    and Directors of Registrant, and by others who, to Registrant's knowledge,
    own more than 10% of Registrant's Common Stock, and subtracting those shares
    from the total number of shares outstanding.
<PAGE>

                                EXPLANATORY NOTE

This Amendment No. 1 on Form 10-K/A to the Annual Report on Form 10-K of
Donnkenny, Inc. (the "Company"), amends and restates in its entirety Item 12 of
Part III.

                                    PART III

ITEM 12.       SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         The following table sets forth certain information, as of March 15,
1998, with respect to beneficial ownership of the Company's Common Stock by: (i)
each of the Company's directors, (ii) each of the Company's Named Executive
Officers, (iii) each person who is known by the Company beneficially to own more
than 5% of the Company's Common Stock, and (iv) all directors and executive
officers of the Company as a group. All information in the table below with
respect to the Common Stock of the Company has been restated to reflect the
two-for-one stock split paid to all holders of Common Stock of record on
December 4, 1995.

<TABLE>
<CAPTION>

NAME AND ADDRESS                            COMMON STOCK         
OF BENEFICIAL OWNER                     BENEFICIALLY OWNED(1)     PERCENTAGE OWNED
-------------------                     ------------------        ----------------

<S>                                         <C>                         <C> 
Schaenen Fox Capital                            859,350(2)                  5.7%
  Management LLC
200 Park Avenue
Suite 3900
New York, NY  10166

Putnam Investments, Inc.                      1,388,150(2)                  9.2%
1 Post Office Square
Boston, MA  02109

Pioneering Management                           890,000(2)                  5.9%
  Corporation
60 State Street
Boston, MA  02109

Harvey A. Appelle                               427,100(3)                  2.8%
Herbert L. Ash                                   15,500(4)                     *
Sheridan C. Biggs                                18,000(5)                     *
Robert H. Cohen                                  20,000(6)                     *
James W. Crystal                                 28,500(7)                     *
Harvey Horowitz                                  50,000(8)                     *
Daniel H. Levy                                   20,000(9)                     *
Stuart S. Levy                                 105,000(10)                     *
Robert H. Martinsen                             32,000(11)                     *
Lynn Siemers-Cross                             334,700(12)                  2.2%
All directors and executive
officers as a group (11 persons)                 1,076,800                  7.1%

</TABLE>

----------------------
*  Less than 1%.

<PAGE>
(1)     Except as otherwise indicated, the information as to securities owned by
        directors, nominees and executive officers was furnished to the Company
        by such directors, nominees and executive officers.

(2)     Based on information contained in Schedule 13G filed with the Company.

(3)     Includes 22,500 shares underlying stock options which have been granted
        to Harvey A. Appelle pursuant to the Company's 1994 Non-Employee
        Director Option Plan, which are currently exercisable. Also includes
        150,000 shares underlying options which have been granted pursuant to
        Mr. Appelle's employment agreement, which is summarized in this Form
        10-K under the caption "Executive Compensation-Employment Agreements".
        Except with respect to 35,000 shares, such options are currently
        exercisable. Also includes 150,000 restricted shares which have been
        granted pursuant to Mr. Appelle's employment agreement. Such restricted
        shares are currently not vested and do not confer voting or investment
        power. Also includes 69,600 shares of stock issued as part of Fiscal
        1997 compensation, as described in this Form 10-K under the caption
        "Executive Compensation,".

(4)     Includes 15,000 shares underlying options which have been granted to
        Herbert L. Ash pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(5)     Includes 15,000 shares underlying options which have been granted to
        Sheridan C. Biggs pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(6)     Includes 15,000 shares underlying options which have been granted to
        Robert H. Cohen pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(7)     Includes 27,500 shares underlying stock options which have been granted
        to James W. Crystal pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(8)     Includes 22,500 shares underlying stock options which have been granted
        to Harvey Horowitz pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(9)     Includes 15,000 shares underlying options which have been granted to
        Daniel H. Levy pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable.

(10)    Shares issued pursuant to Mr. Levy's employment agreement of January 28,
        1997, which is summarized in this Form 10-K under the caption "Executive
        Compensation-Employment Agreements". Currently one-third of such options
        are exercisable.

(11)    Includes 15,000 shares underlying options which have been granted to
        Robert H. Martinsen pursuant to the Company's 1994 Non-Employee Director
        Option Plan. Such options are currently exercisable. Includes 5,000
        shares owned by his spouse in which he disclaims beneficial ownership.

(12)    Includes 7,500 shares underlying options which have been granted on
        April 19, 1996 to Lynn Siemers-Cross pursuant to the Company's 1992
        Stock Option Plan and 150,000 shares underlying options which have been
        granted pursuant to Ms. Siemers-Cross' employment agreement which is
        summarized in this Form 10-K under the caption "Executive
        Compensation-Employment Agreements". Except with respect to 42,500
        shares, such options are currently exercisable. Also includes 150,000
        restricted shares which have been granted pursuant to Ms. Siemers-Cross'
        employment agreement. Such restricted shares are currently not vested
        and do not confer voting or investment power. Also includes 25,000
        shares of stock issued as part of Fiscal 1997 compensation as described
        in this Form 10- K under the caption "Executive Compensation".

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<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this amendment to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                          DONNKENNY, INC.
                                            (Registrant)


                                          By:  /s/ Stuart S. Levy
                                               ----------------------------
                                                   Stuart S. Levy

                 Chief Financial Officer, Vice President-Finance and Secretary


Date: June 24, 1998


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