SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB/A
                                   (Mark One)

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

                For the quarterly period 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 O-25030

                       PLAY CO. TOYS & ENTERTAINMENT CORP.
             (Exact name of registrant as specified in its charter)

Delaware                                         95-3024222
(State or Jurisdiction of 
Incorporation or Organization)                   (I.R.S. Employer Identification
                                                  No.)

                550 Rancheros Drive, San Marcos, California 92069
                    (Address of principal executive offices)

                                 (760) 471-4505
              (Registrant's telephone number, including area code)

                                       N/A

     (Former name, former address, and former fiscal year, if changed since last
report)

     Check whether the Issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 12
months (or for such  shorter  period that  registrant  was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes [X] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State the number of shares of each of the issuer's classes of common equity
outstanding as of the latest  practicable  date:  Common Stock,  $.01 par value:
4,103,519 shares outstanding as of February 2, 1998.

     Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]



<PAGE>
                       PLAY CO. TOYS & ENTERTAINMENT CORP.
                 (A SUBSIDIARY OF UNITED TOYS & TEXTILES CORP.)
                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>

                                     ASSETS

                                                                                              (unaudited)
                                                                                              December 31,         March 31, 1997
                                                                                                  1997

Current

<S>                                                                                                <C>             <C>         
           Cash ................................................................................   $  2,827,735    $    177,722
           Accounts receivable .................................................................        317,121          60,206
           Merchandise inventories .............................................................      6,612,013       6,092,930
           Other current assets ................................................................        163,424         247,313
                                                                                                   ------------    ------------

                                            Total current assets ...............................      9,920,293       6,578,171

Property and Equipment, net of accumulated
           depreciation and amortization of $3,268,948
           and $2,828,913, respectively ........................................................      2,888,687       2,475,650

Deposits and other assets ......................................................................        178,662         324,797
                                                                                                   ------------    ------------
                                                                                                   $ 12,987,642    $  9,378,618
                                                                                                   ============    ============

                       LIABILITIES & STOCKHOLDERS' EQUITY


                                                                                                December 31,       March 31, 1997
                                                                                                  1997

Current

          Borrowings under financing agreement ..................................................   $  4,746,307    $  4,438,875
          Accounts payable ......................................................................      3,439,489       3,259,176
          Accrued expenses and other liabilities ................................................        757,259         308,940
          Current portion of notes payable ......................................................        100,000         141,666
                                                                                                    ------------    ------------
                  Total current liabilities .....................................................      9,043,055       8,148,657
Notes payable, net of current portion ...........................................................         25,000         100,000
Deferred rent liability .........................................................................        155,998         126,925
     Stockholders' equity:
          Series E preferred stock, $.01 par, 10,000,000 shares authorized;
            4,200,570 and 2,500,570 shares outstanding ..........................................      5,966,549       2,500,570
          Common stock, $.01 par value, 40,000,000 shares
            authorized; 4,103,519 and 4,083,519 shares outstanding ..............................         41,035          40,835
          Additional paid-in-capital ............................................................      6,675,398       6,512,107
          Accumulated deficit ...................................................................     (8,919,393)     (8,050,476)

                                            Total stockholders' equity ..........................      3,763,589       1,003,036
                                                                                                    ------------    ------------
                                                                                                    $ 12,987,642     $ 9,378,618
</TABLE>

            See accompanying notes to condensed financial statements


<PAGE>
                                   SIGNATURES




         In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, this 17th day of February 1998.


PLAY CO. TOYS & ENTERTAINMENT CORP.


By: /s/ Richard L. Brady
Richard L. Brady
President and Chief Executive Officer


By: /s/ James B. Frakes
James B. Frakes
Chief Financial Officer