SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q



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



For the quarterly period                             Commission File No. 0-27682
ended August 31, 1997 


                         GLOBE BUSINESS RESOURCES, INC.



Incorporated under the                                       IRS Employer
  laws of Ohio                                    Identification No. 31-1256641



                              1925 Greenwood Avenue
                              Cincinnati, OH 45246
                              Phone: (513) 771-8221







        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



        As of September 30, 1997,  4,444,509 shares of the  Registrant's  common
stock, no par value, were outstanding.




                                     Page 1


<PAGE>




                         GLOBE BUSINESS RESOURCES, INC.
                            INDEX TO QUARTERLY REPORT
                                  ON FORM 10-Q



                                                                        Page No.

PART I.    FINANCIAL INFORMATION

           Item 1.  Consolidated Financial Statements

                    Consolidated Balance Sheet -                            3
                    August 31, 1997 and February 28, 1997

                    Consolidated Statement of Income -                      4
                    Three and six months ended August 31, 1997 and 1996

                    Consolidated Statement of Cash Flows -                  5
                    Six months ended August 31, 1997 and 1996

                    Notes to Consolidated Financial Statements              6

           Item 2.  Management's Discussion and Analysis of
                    Financial Condition and Results of Operations          10



PART II.   OTHER INFORMATION

           Item 1.  Legal Proceedings                                      15

           Item 2.  Changes in Securities                                  15

           Item 3.  Defaults Upon Senior Securities                        15

           Item 4.  Submission of Matters to a Vote of Security Holders    15

           Item 5.  Other Information                                      15

           Item 6.  Exhibits, Financial Statement Schedules and
                    Reports on Form 8-K                                    16


                                     Page 2


<PAGE>




                         PART I - FINANCIAL INFORMATION

                                 GLOBE BUSINESS
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in thousands)


                                                       August 31,   February 28,
                                                          1997         1997
                                                       -----------  ------------
                                                       (Unaudited)
ASSETS:
Cash                                                       $    776    $    717
Trade accounts receivable, less allowance for
  doubtful accounts of $711 and $460, respectively            7,933       5,345
Other receivables                                                35         342
Prepaid expenses                                              1,512       1,504
Rental furniture, net                                        51,680      48,462
Property and equipment, net                                   7,130       4,907
Goodwill and other intangibles, net                          14,699      10,243
Other, net                                                      305         258
                                                           --------    --------
  Total assets                                             $ 84,070    $ 71,778
                                                           ========    ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable                                           $  5,012    $  4,012
Customer deposits                                             1,624       1,343
Accrued compensation                                          1,676       1,762
Accrued taxes                                                   848         557
Deferred income taxes                                         3,788       2,901
Accrued interest payable                                        764         371
Other accrued expenses                                          692         480
Debt                                                         37,150      30,516
                                                           --------    --------
  Total liabilities                                          51,554      41,942
                                                           ========    ========
Common stock and other shareholders' equity:
  Common stock, no par, 15,000,000 and
  10,000,000 shares authorized, 4,443,759
  and 4,440,509 shares issued and outstanding                19,915      19,883
Retained earnings                                            16,685      14,037
Fair market value in excess of historical cost of
  acquired net assets attributable to related party
  transactions                                               (4,084)     (4,084)
                                                           --------    --------
Total common stock and other shareholders' equity            32,516      29,836
Total liabilities and shareholders' equity                 $ 84,070    $ 71,778
                                                           ========    ========

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


                                     Page 3


<PAGE>


                         GLOBE BUSINESS RESOURCES, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                      (In thousands, except per share data)


                                         For the                  For the
                                    three months ended,      six months ended
                                   August 31,  August 31,  August 31, August 31,
                                        1997        1996      1997        1996
                                   ----------  ----------  ---------- ----------
                                          (Unaudited)           (Unaudited)
Revenues:
  Rental sales                       $ 12,282   $ 10,363    $ 23,600   $ 19,793
  Corporate housing sales               9,390      3,669      16,464      3,669
  Retail sales                          3,414      3,678       7,214      7,361
                                     --------   --------    --------   --------
                                       25,086     17,710      47,278     30,823
                                     --------   --------    --------   --------

Costs and expenses:
  Cost of rental sales                  2,799      2,724       5,865      5,191
  Cost of corporate housing sales       6,728      2,502      11,619      2,502
  Cost of retail sales                  2,138      2,306       4,553      4,509
  Warehouse and delivery                2,847      2,145       5,343      3,930
  Occupancy                             1,730      1,460       3,397      2,849
  Selling and advertising               2,166      2,102       4,477      3,970
  General and administration            3,460      2,287       6,253      4,133
                                     --------   --------    --------   --------
                                       21,868     15,526      41,507     27,084
                                     --------   --------    --------   --------

Operating income                        3,218      2,184       5,771      3,739

Other expenses (income):
  Interest expense                        752        383       1,353        607
  Other, net                               29        (33)         75        (58)
                                     --------   --------    --------   --------
                                          781        350       1,428        549
                                     --------   --------    --------   --------
Income before income taxes              2,437      1,834       4,343      3,190
Provision for income taxes                951        711       1,695      1,243
                                     --------   --------    --------   --------
Net income                           $  1,486   $  1,123    $  2,648   $  1,947
                                     ========   ========    ========   ========
Net income per common share          $   0.33   $   0.26    $   0.60   $   0.45
                                     ========   ========    ========   ========

Weighted average number  
common shares outstanding               4,443      4,309       4,442      4,282

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



                                     Page 4


<PAGE>




                         GLOBE BUSINESS RESOURCES, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                             (Dollars in thousands)


                                                       For the six months ended,
                                                        August 31,    August 31,
                                                           1997         1996
                                                        ----------    ----------
                                                               (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                 $  2,648    $  1,947
Adjustments to reconcile net income
 to net cash provided by
 operating activities:
   Rental furniture depreciation                              3,523       2,917
   Other depreciation and amortization                        1,023         485
   Provision for losses on accounts receivable                  255          50
   Provision for deferred income taxes                          887         507
   (Gain)/loss on sale of property and equipment                 (4)          4
   Book value of furniture sales and rental buyouts           5,932       5,811
   Changes in assets and liabilities:
     Accounts receivable                                     (2,734)     (1,205)
     Other assets, net                                           (6)       (115)
     Prepaid expenses                                           127        (188)
     Accounts payable                                           959          15
     Customer deposits                                          144         (35)
     Accrued compensation                                      (181)       (854)
     Accrued taxes                                              279         504
     Accruted interest payable                                  393          94
     Other accrued expenses                                     178        (133)
                                                           --------    --------
        Net cash provided by operating activities            13,523       9,804
                                                           --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to rental furniture                               (12,132)    (15,150)
Purchases of property and equipment                          (2,503)       (714)
Proceeds from disposition of property and equipment               7        --
Debenture retirement                                           --           (59)
Purchase of businesses, net of cash acquired                 (5,432)     (5,912)
                                                           --------    --------
        Net cash used in investing activities               (20,060)    (21,835)
                                                           --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on the revolving credit agreement                 56,316      49,023
Repayments on the revolving credit agreement                (50,885)    (35,853)
Net proceeds (repayments) of other debt                       1,370        (595)
Principal payments under capital lease obligations             (211)       (162)
Exercise of common stock options                                  6          15
                                                           --------    --------
        Net cash provided by financing activities             6,596      12,428
                                                           --------    --------
Net (decrease)/increase in cash                                  59         397
Cash at beginning of period                                     717         133
                                                           --------    --------
Cash at end of period                                      $    776    $    530
                                                           --------    --------


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



                                     Page 5


<PAGE>




                         GLOBE BUSINESS RESOURCES, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)


NOTE 1 -- PRESENTATION OF INTERIM INFORMATION

        In the opinion of the management of Globe Business Resources,  Inc., the
accompanying unaudited consolidated financial statements include all adjustments
considered  necessary to present fairly its financial  position as of August 31,
1997,  and the  results of its  operations  for the three and six  months  ended
August 31, 1997 and 1996 and its cash flows for the six months  ended August 31,
1997 and 1996.  Interim results are not necessarily  indicative of results for a
full year.

        The  consolidated  financial  statements  and  notes  are  presented  in
accordance  with the  requirements  of Form  10-Q,  and do not  contain  certain
information included in the Company's audited consolidated  financial statements
and notes in its Form 10-K for the fiscal year ended February 28, 1997.


NOTE 2 -- ACQUISITIONS

        On April  28,  1997,  Globe  acquired  substantially  all the  assets of
privately owned The Hotel Alternative,  Inc. ("THA") for approximately $3,400 in
cash,  the  assumption  of  certain  liabilities  and  contingent  consideration
consisting of up to $1,000 payable in the fourth quarter of fiscal year 1998 and
up to 50,000 shares of Globe common stock, currently held in escrow, issuable in
the first  quarter  of fiscal  year  1999.  THA,  with  operations  in  Seattle,
Washington and Portland,  Oregon, provides short-term housing to transferring or
temporarily assigned corporate personnel,  new hires,  trainees and consultants.
THA  maintained an inventory of  approximately  500 leased housing units and had
annual  revenues of  approximately  $6.0 million for the year ended December 31,
1996.

        On June 5, 1997, Globe and the prior owner of Guest Suites,  Inc. agreed
to final settlement of contingent  consideration related to Globe's December 16,
1996  asset  acquisition.  The  settlement,  recorded  as an  adjustment  to the
original  purchase price during the second quarter of fiscal 1998,  consisted of
$350 and 2,500 shares of Globe common stock.

        On July  11,  1997,  Globe  acquired  substantially  all the  assets  of
privately owned Executive  Relocation  Services,  Inc. ("ERS") for approximately
$1,600  in  cash,   the  assumption  of  certain   liabilities   and  contingent
consideration consisting of up to $500 payable in two installments of up to $250
in the first quarter of fiscal 1999 and fiscal 2000.  ERS operates in Nashville,
Tennessee  and  provides  short-term  housing  to  transferring  or  temporarily
assigned  corporate  personnel,   new  hires,  trainees  and  consultants.   ERS
maintained an inventory of approximately 200 leased housing units and had annual
revenues of approximately $2.6 million for the year ended December 31, 1996.

        In accordance with  APB  No. 16, these acquisitions  were  accounted for
using the purchase method.


                                     Page 6


<PAGE>




        The purchase price allocation for THA and ERS is as follows:


                                                                (Unaudited)
                                                                -----------
Cash, receivables and prepaids                                   $     64
Rental furniture                                                      541
Property and equipment                                                318
Other assets                                                           41
Goodwill and other intangibles                                      4,824
                                                                   ------
                                                                    5,788
Liabilities assumed                                                 (341)
                                                                   ------
                                                                   $5,447
                                                                   ======


        The  following  table  sets  forth  certain  Globe  consolidated  income
statement  data on a pro forma  basis,  as if THA and ERS were  acquired  at the
beginning of the periods indicated.


                                                   Six months ended August 31
                                                     1997                1996
                                                   -------             -------
Revenues                                           $50,155             $37,413
Net income                                           2,717               2,170
Net income per common share                          $0.61               $0.51
Weighted average number of common
  shares outstanding                                 4,442               4,282


SUBSEQUENT EVENT

        On September 1, 1997,  Globe  acquired  substantially  all the assets of
privately owned Research  Triangle Guest Houses  ("RTGH"),  a division of Turner
Creek  Enterprises,  Inc.,  for  approximately  $225 in cash.  RTGH  operates in
Raleigh/Durham,  North Carolina and provides  short-term housing to transferring
or  temporarily   assigned  corporate   personnel,   new  hires,   trainees  and
consultants.  RTGH maintained an inventory of  approximately  170 leased housing
units and had annual revenues of  approximately  $2.7 million for the year ended
June 30, 1997.


NOTE 3 -- EARNINGS PER SHARE

        Earnings  per share for the periods  ended August 31, 1997 and 1996 were
determined  by dividing  net income  applicable  to common stock by the weighted
average  number of  shares  of  common  stock  outstanding  during  the  period.
Outstanding  stock options are not included as common stock equivalents as their
exercise would not cause a dilutive effect in excess of 3%.



                                     Page 7


<PAGE>




        The Financial  Accounting Standards Board issued SFAS No. 128, "Earnings
Per  Share",  in February  1997.  This  Statement  must be adopted in the fourth
quarter of fiscal year 1998.  Early adoption is not permitted.  Had earnings per
share  been  calculated  under the  provisions  of SFAS No.  128 for the  second
quarter and first six months of fiscal  years 1998 and 1997,  reported  earnings
per share and related shares outstanding would have been as follows:

                                     For the                   For the
                                three months ended,       six months ended,
                               -----------------------   -----------------------
                               August 31,   August 31,   August 31,   August 31,
                                  1997         1996        1997           1996
                               ----------   ----------   ----------   ----------
                                       (Unaudited)              (Unaudited)
Earnings per common share:
        Basic                     $0.33         $0.26      $0.60         $0.45
        Diluted                   $0.33         $0.26      $0.59         $0.45

Weighted average number of
  common shares outstanding:
        Basic                     4,443         4,309       4,442        4,282
        Diluted                   4,515         4,325       4,497        4,304


NOTE 4 -- RENTAL FURNITURE


                                     August 31, 1997       February 28, 1997
                                     ---------------       -----------------
                                       (Unaduited)         

Furniture on rental                      $42,872               $39,509
Furniture on hand                         18,193                16,808
                                         -------               -------
                                          61,065                56,317
Accumulated depreciation                 (9,385)               (7,855)
                                         -------               -------
                                         $51,680               $48,462
                                         -------               -------


                                     Page 8


<PAGE>




NOTE 5 -- DEBT

        Outstanding debt consists of:


                                                      August 31,    February 28,
                                                         1997           1997
                                                       ----------     ---------
                                                      (Unaudited)
The 1996 Credit Agreement:                         
  The Fifth Third Bank, PNC Bank, 
  KeyBank and Fountain Square Commercial
  Funding Corp. revolving note, average
  interest of 8.11% nd 7.59%, respectively              $33,984      $28,554

  6.0% note payable to seller of acquired 
    business, payable in monthly installments,
    due December 31, 2000                                 1,000        1,150

  7.5% note payable to seller of acquired 
    business, payable in monthly installments,
    due November 2, 1998                                  227            271

8.5% construction loan payable to The 
    Fifth Third Bank, interest payable in 
    monthly installments, due September 1, 1997         1,520              -

Capital lease obligations                                 419            541
                                                    ---------      ---------
                                                      $37,150        $30,516
                                                    ---------      ---------


        The funds  required for the THA and ERS  acquisitions  (see Note 2) were
derived from borrowings under the Company's 1996 Credit Agreement. At August 31,
1997,  the 1996 Credit  Agreement  provided a total  unused  credit  facility of
approximately $11.0 million.


SUBSEQUENT EVENTS

        On  September  1, 1997,  the  construction  loan terms were  extended to
December 1, 1997.

        On September 29, 1997 the Company completed a private placement of $30.0
million of 7.54%  Senior  Notes due  September 1, 2007,  with  interest  payable
semi-annually on March 1 and September 1. After one year, the Company may redeem
the Senior Notes at a premium.

        Also on September 29, 1997, the Company  established a new $30.0 million
credit agreement with The Fifth Third Bank and PNC Bank. This agreement replaces
The 1996 Credit Agreement.  Interest rates for this revolving line of credit are
based on a leverage formula which initially will be the lesser of the prime rate
minus 25 basis points or LIBOR plus 150 basis points. The term of this agreement
will expire on September 30, 2000.

        Both the Senior Notes and the new credit agreement are unsecured.

                                     Page 9


<PAGE>




                                     ITEM 2

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS



        The following discussion and analysis should be read in conjunction with
the Company's Consolidated Financial Statements beginning on page 3.

GENERAL

        Globe  is a major  participant  in the  temporary  relocation  industry,
operating  in the  rent-to-rent  furniture  business  as  well  as in  corporate
housing.   The  rent-to-rent   furniture   business  rents  quality  office  and
residential  furniture to a variety of corporate and individual  customers.  The
corporate housing business provides  short-term  housing through an inventory of
leased housing units to temporarily  assigned  corporate  personnel,  new hires,
trainees and consultants. Additionally, the Company sells residential and office
furniture  that no longer meets its  "showroom  condition"  standards for rental
through its  clearance  centers and offers new  furniture  for sale  through its
showrooms and account executives.

        The Company's fiscal year ends on February 28/29.

        The discussions  contained under Results of Operations and Liquidity and
Capital Resources include forward-looking  information which is subject to risks
and qualifications  including, but not limited to, those set forth in Exhibit 99
to the Company's Form 10-K for the year ended February 28, 1997.

RESULTS OF OPERATIONS

        The following table sets forth for the periods  indicated certain income
statement  data as a percentage of total  revenues and certain gross profit data
as a  percentage  of  respective  rental,  corporate  housing  and retail  sales
revenues.


                                     For the                     For the
                               three months ended,         six months ended
                              -----------------------   ------------------------
                              August 31,   August 31,   August 31,    August 31,
                                 1997         1996        1997           1996
                              ----------   ----------   ----------    ----------
Revenues:
  Rental sales                   49.0%        58.5%         49.9%        64.2%
  Corporate housing sales        37.4%        20.7%         34.8%        11.9%
  Retail sales                   13.6%        20.8%         15.3%        23.9%
                                ------       ------        ------       ------
    Total revenues              100.0%       100.0%        100.0%       100.0%

Gross profit:
  Rental sales                   77.2%        73.7%         75.1%        73.8%
  Corporate housing sales        28.3%        31.8%         29.4%        31.8%
  Retail sales                   37.4%        37.3%         36.9%        38.7%
                                ------       ------        ------       ------
    Total gross profit           53.5%        57.5%         53.4%        60.4%

Operating expenses               40.7%        45.1%         41.2%        48.3%
                                ------       ------        ------       ------
Operating income                 12.8%        12.3%         12.2%        12.1%

Interest/other                    3.1%         2.0%          3.0%         1.8%
                                ------       ------        ------       ------
Income before taxes               9.7%        10.4%          9.2%        10.3%
                                ------       ------        ------       ------


                                    Page 10


<PAGE>

  Impact of Corporate Housing Acquisitions
  ----------------------------------------

     Globe entered the corporate housing business in fiscal 1997 by making three
asset  acquisitions,  one in June 1996 and two in December 1996.  Globe acquired
two  additional  corporate  housing  businesses in the first half of fiscal 1998
with the asset  acquisitions  of The Hotel  Alternative,  Inc. in April 1997 and
Executive  Relocation  Services,  Inc. in July 1997. A third  corporate  housing
acquisition was made in September  1997,  subsequent to completion of the second
quarter.

     The corporate  housing  businesses all have lower gross profit margins,  as
well as  lower  operating  expenses  as a  percentage  of  sales,  than  Globe's
furniture  rental business.  As a result,  the Company's gross profit margin and
operating  expenses as a percentage of sales are both lower in the first half of
fiscal 1998 than in the prior year.  Gross profit margin on rental sales for the
first half of 1998 was 75.1%,  versus 29.4% for the combined  corporate  housing
businesses.  Comparable  gross  profit  margins  for the first half of 1997 were
73.8% and 31.8%,  respectively.  Because the Company  started to  integrate  its
furniture rental and corporate housing operations in the first quarter of fiscal
1998, operating expenses and, therefore,  operating margins for furniture rental
and corporate housing cannot be specifically  identified,  however, the combined
operating  margin for the businesses has improved to 12.2% for the first half of
1998 from 12.1% for the same period of 1997.

     Corporate   housing   companies'   assets  consist  primarily  of  accounts
receivable, customer deposits and some minor furniture and fixed asset balances.
Consequently,  the purchase price for these  businesses is allocated  largely to
goodwill and other intangibles.  Cost of goodwill and other intangibles  related
to the fiscal 1998 and 1997 corporate housing  acquisitions  approximated  $15.3
million and is being  amortized as a cost of rental  revenues on a straight-line
basis primarily over twenty years. Goodwill and intangibles amortization reduced
gross profit by $0.4 million in the first half of fiscal 1998.

     Globe plans to continue consolidating  corporate housing through additional
acquisitions,  thereby capitalizing on the desire of many corporations to have a
corporate  housing  company  that can handle  their needs  nationally.  With the
fiscal  1998 and 1997  acquisitions,  Globe  has  become a market  leader in six
markets,  with annualized  corporate  housing revenues in excess of $35 million.
Globe is vying with a small number of corporate housing companies for the number
two position in the industry.

     As Globe  increases  its presence in the corporate  housing  business it is
possible that competing corporate housing companies may transfer their furniture
rental business to other vendors.

     Due to the significant impact of the corporate housing  acquisitions on the
Company's  operations and financial results, the Company's historical results of
operations  and  period-to-period  comparisons  will not be indicative of future
results.


  Comparison of Second Quarter Fiscal 1998 to Second Quarter Fiscal 1997
  ----------------------------------------------------------------------

     Total revenues of $25.1 million  increased $7.4 million,  or 41.6%,  in the
second  quarter  of fiscal  1998,  from $17.7  million in the second  quarter of
fiscal 1997,  primarily due to  acquisitions  which  occurred  subsequent to the
second quarter of fiscal 1997. Excluding the corporate housing operations, total
revenues increased $1.7 million,  or 11.8%, in the second quarter of fiscal 1998
compared to the second quarter of fiscal 1997.

     Rental  revenues  of $12.3  million  in the second  quarter of fiscal  1998
increased  18.5% from $10.4 million in the second  quarter of fiscal 1997.  This
growth was driven by significant  volume increases in the California  markets as
well as several midwestern markets, and is partially attributable to a furniture
rental  acquisition  which  occurred  subsequent to the second quarter of fiscal
1997.

                                     Page 11


<PAGE>


     Corporate  housing revenues of $9.4 million in the second quarter of fiscal
1998  increased  155.9% from $3.7 million in the second  quarter of fiscal 1997.
This increase was primarily driven by acquisitions which occurred  subsequent to
the second quarter of fiscal 1997.

     Sales  revenues of $3.4 million  decreased  $0.3  million,  or 7.2%, in the
second  quarter of fiscal 1998 from $3.7 million in the second quarter of fiscal
1997,  driven by a down quarter in new office furniture sales and a flat quarter
in clearance  sales.  Sales revenues should increase in the third quarter due to
several large new office furniture sales expected to be delivered and due to new
advertising  programs  currently  being rolled out which are designed to improve
the trend in clearance sales.

     Gross  profit  of $13.4  million  in the  second  quarter  of  fiscal  1998
increased  $3.2 million,  or 31.9%,  from $10.2 million in the second quarter of
fiscal 1997 and  declined as a  percentage  of revenues to 53.5% from 57.5% over
the same  period due to the higher mix of  corporate  housing  revenues  and the
lower margins associated with these revenues.

     Operating  expenses of $10.2  million in the second  quarter of fiscal 1998
increased  27.6% from $8.0 million in the second quarter of fiscal 1997, but, as
a percentage of total revenues declined to 40.7% from 45.1% over the same period
as a result of  corporate  housing's  lower  operating  expenses as a percent of
sales.

     As a result of the changes in revenues, gross profit and operating expenses
discussed above,  operating income increased 47.3% to $3.2 million,  or 12.8% of
revenues in the second  quarter of fiscal 1998,  from $2.2 million,  or 12.3% of
revenues in the second quarter of fiscal 1997.

     Interest/other expense increased $0.4 million to $0.8 million in the second
quarter of fiscal  1998 from $0.4  million in the second  quarter of fiscal 1997
and as a percentage of total revenues  increased to 3.1% from 2.0% over the same
period.  The increased  expense for fiscal 1998 was due primarily to higher debt
balances  than in the  comparable  period of fiscal 1997.  The debt increase was
driven by funding required for acquisitions.

     Income before income taxes of $2.4 million in the second  quarter of fiscal
1998 increased $0.6 million, or 32.9%,  compared to the second quarter of fiscal
1997 and as a percentage of revenues  decreased to 9.7% from 10.4% over the same
period primarily due to interest costs on higher loan balances in fiscal 1998.

     The Company's  effective tax rate, which includes federal,  state and local
taxes,  increased  slightly  to 39.0% in the second  quarter  of fiscal  1998 as
compared to 38.8% in the second quarter of fiscal 1997.


  Comparison of Six Months Ended August 31, 1997
  to Six Months Ended August 31, 1996

     Total revenues of $47.3 million  increased $16.5 million,  or 53.4%, in the
first six months of fiscal 1998,  from $30.8  million in the first six months of
fiscal 1997,  primarily due to  acquisitions.  Excluding  the corporate  housing
operations,  total revenues  increased $3.7 million,  or 13.5%, in the first six
months of fiscal 1998 compared to the first six months of fiscal 1997.

     Rental  revenues  of $23.6  million in the first six months of fiscal  1998
increased  19.2%  from $19.8  million  in the first six  months of fiscal  1997,
driven by strong volume growth in the California  markets and several midwestern
markets.  The growth is partially  attributable to furniture rental acquisitions
made during the second and third quarters of fiscal 1997.


                                     Page 12


<PAGE>


     Corporate  housing  revenues  of $16.5  million  in the first six months of
fiscal 1998  increased  from $3.7 million in the first six months of fiscal 1997
due to acquisitions.

     Sales  revenues of $7.2 million  decreased  $0.2  million,  or 2.0%, in the
first six  months of fiscal  1998 from $7.4  million  in the first six months of
fiscal 1997. This decrease is largely attributable to a drop in clearance sales,
however,  new  advertising  programs  are  currently  being rolled out which are
designed to reverse the trend.

     Gross  profit  of $25.2  million  in the first  six  months of fiscal  1998
increased $6.6 million,  or 35.6%, from $18.6 million in the first six months of
fiscal 1997 and  declined as a  percentage  of revenues to 53.4% from 60.4% over
the same  period due to the higher mix of  corporate  housing  revenues  and the
lower margins associated with these revenues.

        Operating  expenses  of $19.5  million in the first six months of fiscal
1998 increased  30.8% from $14.9 million in the first six months of fiscal 1997,
but, as a  percentage  of total  revenues  declined to 41.2% from 48.3% over the
same period due to the impact of corporate housing's lower operating expenses as
a percentage of sales.

        As a result of the  changes in  revenues,  gross  profit  and  operating
expenses discussed above,  operating income increased 54.3% to $5.8 million,  or
12.2% of revenues in the first six months of fiscal 1998, from $3.7 million,  or
12.1% of revenues in the first six months of fiscal 1997.

        Interest/other  expense  increased  $0.9  million to $1.4 million in the
first six  months of fiscal  1998 from $0.5  million  in the first six months of
fiscal 1997 and as a percentage  of total  revenues  increased to 3.0% from 1.8%
over the same period. The increased expense for fiscal 1998 was due primarily to
higher debt balances than in the comparable  period of fiscal 1997. The increase
in debt was driven by funding required for acquisitions.

        Income  before  taxes of $4.3  million in the first six months of fiscal
1998  increased  $1.2  million,  or 36.1%,  compared  to the first six months of
fiscal 1997 and as a  percentage  of revenues  decreased to 9.2% from 10.3% over
the same  period  primarily  due to interest  costs on higher  loan  balances in
fiscal 1998.

        The Company's  effective tax rate,  which  includes  federal,  state and
local taxes, remained flat at 39.0%.


LIQUIDITY AND CAPITAL RESOURCES

        On September 29, 1997, the Company established a $30.0 million unsecured
line of credit which replaced an existing $45.0 million line of credit. Interest
rates for this revolving line of credit are based on a leverage  formula,  which
is  currently  the lesser of the prime rate minus 25 basis  points or LIBOR plus
150 basis points. At September 30, 1997, the line of credit provided up to $30.0
million of financing for the Company  which will be available  for  acquisitions
and general  corporate  purposes.  The unused line of credit as of September 30,
1997 was $22.8 million.

        The term of the line of  credit  will  expire  on  September  30,  2000,
requiring full payment of the then outstanding  balance.  The Company expects to
have other financing arrangements in place prior to this date.


                                     Page 13


<PAGE>


        On September  29,  1997,  the Company  completed a private  placement of
$30.0  million of  unsecured  7.54% Senior  Notes due  September  1, 2007,  with
interest  payable  semi-annually  on March 1 and September 1. These Senior Notes
may be redeemed at a premium after one year.

        From March 1997 through  September  1997 Globe used  approximately  $5.7
million from its lines of credit and assumed  certain  liabilities in completing
three  asset   acquisitions  and  reaching  a  final  settlement  on  contingent
consideration  for a fiscal 1997  acquisition.  (See note 2 to the  consolidated
financial statements for further discussion of these acquisitions.)

        The  Company's  principal use of cash is for  furniture  purchases.  The
Company  purchases  furniture  to replace  furniture  which has been sold and to
maintain  adequate levels of rental  furniture to meet existing and new customer
needs.  Furniture purchases were $12.1 million in the first six months of fiscal
1998 and $15.1  million in the first six months of fiscal 1997. As the Company's
growth strategies are implemented, furniture purchases are expected to increase.

        Capital expenditures were $2.5 million and $0.7 million in the first six
months of fiscal 1998 and 1997, respectively. The significant increase in fiscal
1998 is largely  attributable to continued  development of a new computer system
and  construction of a new building in Indianapolis,  Indiana.  Costs to further
develop the  computer  system will be incurred in the next 12-18  months.  These
expenses are anticipated to be approximately $0.7 million.

        On March 13, 1997,  Globe obtained a $1.5 million  construction  loan in
order to fund  construction of the building in Indianapolis.  The loan, which is
secured by real estate and the  building,  is due December 1, 1997.  The Company
intends to replace this loan with  permanent  financing on December 1, 1997.  At
September 30, 1997 one thousand was outstanding against the loan.

        In the first six months of fiscal  1998 and 1997,  net cash  provided by
operations was $13.5 million and $9.8 million, respectively, generating $1.1 and
$6.1  million,  respectively,  less cash than was  necessary  to fund  investing
activities (excluding acquisitions),  thus requiring use of the Company's credit
facilities.  Furniture purchases, which are typically seasonally weighted to the
first half of the year, are the primary reason for use of the credit facilities.
These purchases are expected to slow during the third and fourth  quarters.  Any
temporary  cash  deficiencies  resulting  from  the  seasonal  nature  of  these
purchases will be funded via the line of credit.  The Company  expects cash flow
from  operations  plus  the  credit  facilities  to be  sufficient  to fund  the
Company's needs for the foreseeable future.

                                     Page 14


<PAGE>


                                     PART II


                                     ITEM 1
                                LEGAL PROCEEDINGS

                                      None


                                     ITEM 2
                              CHANGES IN SECURITIES

        On June 5, 1997 the  Company  issued  2,500  shares  of common  stock to
Sonnen Schein, Inc., c/o Pamela J. Bayne as part of the final settlement for the
December 16, 1996 asset acquisition of Guest Suites, Inc.

        These issuances were exempt from  registration  under the Securities Act
of 1933 pursuant to the exemptions from registration provided by Section 4(2) of
the Act.


                                     ITEM 3
                         DEFAULTS UPON SENIOR SECURITIES

                                      None


                                     ITEM 4
               SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     The Company's  Annual  Meeting of  Shareholders  was held on July 22, 1997.
Each of the  following  matters  was voted upon and  approved  by the  Company's
shareholders as indicated below:

1.   Elected the following directors:

        a.     David D. Hoguet, 4,364,056 votes for, 10,357 abstentions
        b.     Blair D. Neller, 4,364,056 votes for, 10,357 abstentions
        c.     Alvin Z. Meisel, 4,364,056 votes for, 10,357 abstentions
        d.     William R. Griffin, 4,364,056 votes for, 10,357 abstentions
        e.     Thomas C. Parise, 4,364,056 votes for, 10,357 abstentions.

2.   Amended the Articles of  Incorporation to increase the number of authorized
     shares  of  Common  Stock  from ten  million  to  fifteen  million  shares,
     4,317,211 votes for, 44,677 votes against, 12,525 abstentions.

3.   Adopted the Globe 1997 Stock Option and  Incentive  Plan,  3,876,762  votes
     for, 478,320 votes against, 19,331 abstentions.

4.   Adopted the Globe 1997 Directors  Stock Option Plan,  4,281,272  votes for,
     76,320 votes against, 16,821 abstentions.

5.   Ratified the  appointment of Price  Waterhouse  LLP as  independent  public
     accountants  for fiscal 1998,  4,360,731  votes for,  4,665 votes  against,
     9,017 abstentions.


                                     Page 15


<PAGE>


                                     ITEM 5
                                OTHER INFORMATION

                                      None


                                     ITEM 6
         EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)     Exhibits:

        3(i)   Amendment to Articles of Incorporation, filed herewith
        10.8   1997 Stock Option and Incentive Plan*
        10.9   1997 Directors Stock Option Plan*
        10.10  Credit  Agreement among the Registrant,  The Fifth Third Bank and
               PNC Bank dated as of September 29, 1997, filed herewith
        10.11  7.54%  Senior Notes due  September 1, 2007 among the  Registrant,
               Security Life of Denver Insurance Company, Life Insurance Company
               of Georgia, Peerless Insurance Company, Indiana Insurance Company
               and  Southland  Life  Insurance  Company dated as of September 1,
               1997, filed herewith
        27     Financial Data Schedule

        *      Incorporated  by reference to the definitive  proxy  statement
               for the 1997 annual shareholders meeting.

(b)     Reports on Form 8-K filed during the second quarter of 1998:  None


                                     Page 16


<PAGE>




                                   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.

                                            Globe Business Resources, Inc.



                                            By:    /s/Sharon G. Kebe
                                               ---------------------------------
                                               Senior Vice President-Finance 
                                                  and Treasurer
                                               (Principal Financial Officer)

Signed:  October 6, 1997



                                     Page 17