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 ended May 31, 1998          Commission File No. 0-27682



                         Globe Business Resources, Inc.



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



                               11260 Chester Road
                                    Suite 400
                              Cincinnati, OH 45246
                              Phone: (513) 771-8287


     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 July 3, 1998,  4,555,707 shares of the Registrant's  common stock, no
par value, were outstanding.



<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
                    May 31, 1998 and February 28, 1998

                    Consolidated Statement of Income -                     4
                    Three months ended May 31, 1998 and 1997

                    Consolidated Statement of Cash Flows -                 5
                    Three months ended May 31, 1998 and 1997

                    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                                     14

        Item 2.     Changes in Securities                                 14

        Item 3.     Defaults Upon Senior Securities                       14

        Item 4.     Submission of Matters to a Vote of Security Holders   14

        Item 5.     Other Information                                     14

        Item 6.     Exhibits, Financial Statement Schedules and
                    Reports on Form 8-K                                   14


<PAGE>


                         PART I - FINANCIAL INFORMATION

                         GLOBE BUSINESS RESOURCES, INC.
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in thousands)



                                                           May 31,  February 28,
                                                             1998       1998 
                                                         ---------  ------------

                                                         (Unaudited)

ASSETS:
Cash                                                     $     363    $     526
Trade accounts receivable, less allowance 
  for doubtful accounts of $623 
  and $609, respectively                                     9,710        8,252
Other receivables                                              569          131
Prepaid expenses                                             2,876        2,038
Rental furniture, net                                       53,614       53,220
Property and equipment, net                                  8,040        7,743
Goodwill and other intangibles, net                         30,613       26,695
Note receivable from officer                                   100          100
Other, net                                                     971          732
                                                         ---------    ---------

  Total assets                                           $ 106,856    $  99,437
                                                         =========    =========



LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable                                         $   5,054    $   3,561
Customer deposits                                            2,202        2,027
Accrued compensation                                         2,140        2,061
Accrued taxes                                                  938          325
Deferred income taxes                                        4,123        4,183
Accrued interest payable                                       878        1,121
Other accrued expenses                                       1,533        1,025
Debt                                                        53,533       49,713
                                                         ---------    ---------

  Total liabilities                                         70,401       64,016
                                                         ---------    ---------

Common stock and other shareholders' equity:
  Common stock, no par, 15,000,000 shares
    authorized, 4,555,142, and 4,548,399
    shares issued and outstanding                           21,496       21,492
  Retained earnings                                         19,043       18,013
  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         36,455       35,421
                                                         ---------    ---------

  Total liabilities and shareholders' equity             $ 106,856    $  99,437
                                                         =========    =========


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

<PAGE>

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

                                                     For the three months ended,
                                                     ---------------------------
                                                       May 31,          May 31,
                                                       1998              1997
                                                     ---------------------------
                                                               (Unaudited)

Revenues:
     Corporate housing sales                         $ 16,858           $  7,074
     Rental sales                                      11,355             11,318
     Retail sales                                       4,669              3,800
                                                     --------           --------
                                                       32,882             22,192
                                                     --------           --------

Cost of revenues:
     Cost of corporate housing sales                   11,982              4,832
     Cost of rental sales                                 798              1,000
     Cost of retail sales                               2,834              2,415
     Furniture depreciation and disposals               2,349              2,170
                                                     --------           --------
                                                       17,963             10,417
                                                     --------           --------

Gross profit                                           14,919             11,775

Operating expenses:
     Warehouse and delivery                             2,576              2,290
     Occupancy                                          1,854              1,667
     Selling and advertising                            2,634              2,311
     General and administration                         4,670              2,793
     Amortization of intangible assets                    427                161
                                                     --------           --------
                                                       12,161              9,222
                                                     --------           --------

Operating income                                        2,758              2,553

Other expenses:
     Interest expense                                     964                601
     Other, net                                            31                 46
                                                     --------           --------

                                                          995                647

Income before income taxes                              1,763              1,906

Provision for income taxes                                688                744
                                                     --------           --------


Net income                                           $  1,075           $  1,162
                                                     ========           ========

Earnings per common share:

     Basic                                           $   0.24           $   0.26
                                                     ========           ========
     Diluted                                         $   0.23           $   0.26
                                                     ========           ========

Weighted average number of 
common shares outstanding:
     Basic                                              4,550              4,441
     Diluted                                            4,679              4,496

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



<PAGE>


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

                                                              For the three
                                                               months ended,
                                                          ----------------------

                                                          May 31,        May 31,
                                                            1998          1997
                                                          ----------   ---------
                                                                (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                 $  1,075    $  1,162
Adjustments to reconcile net income to
  net cash provided by operating activities:
    Rental furniture depreciation                             1,902       1,729
    Other depreciation and amortization                         934         434
    Provision for losses on accounts receivable                 154         100
    Provision for deferred income taxes                         (60)         52
    (Gain)/loss on sale of property and equipment                (5)       --
    Book value of furniture sales and rental buyouts          3,748       3,192
    Changes in assets and liabilities:
      Accounts receivable                                    (2,064)       (579)
      Note receivable                                          --          --
      Other assets, net                                        (239)          3
      Prepaid expenses                                         (838)        (13)
      Accounts payable                                        1,493         218
      Customer deposits                                         117         223
      Accrued compensation                                      (17)       (274)
      Accrued taxes                                             613         694
      Accrued interest payable                                 (243)          6
      Other accrued expenses                                    326         118
                                                           --------    --------
        Net cash provided by operating activities             6,896       7,065
                                                           --------    --------


CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to rental furniture                                (5,234)     (6,349)
Purchases of property and equipment                            (805)     (1,577)
Proceeds from disposition of property and equipment               6        --
Purchases of businesses, net of cash acquired                (4,852)     (3,452)
                                                           --------    --------
        Net cash used in investing activities               (10,885)    (11,378)
                                                           --------    --------


CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on the revolving credit agreement                 37,276      28,587
Repayments on the revolving credit agreement                (33,259)    (25,425)
Borrowings on the senior note                                  --          --
Borrowings/(repayments) of other debt                           (75)      1,250
Principal payments under capital lease obligations             (121)       (115)
Exercise of common stock options                                  5        --
                                                           --------    --------
        Net cash provided by financing activities             3,826       4,297
                                                           --------    --------

Net decrease in cash                                           (163)        (16)
Cash at beginning of period                                     526         717
                                                           --------    --------
Cash at end of period                                      $    363    $    701
                                                           ========    ========


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


<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 May 31,
1998,  and the results of its operations for the three months ended May 31, 1998
and 1997 and its cash flows for the three  months  ended May 31,  1998 and 1997.
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, 1998.

     Certain prior year amounts have been  reclassified  to conform with current
year presentation.

NOTE 2 -- ACQUISITIONS

     During the first  quarter of fiscal 1999,  the Company  completed two asset
acquisitions  and settled certain  contingent  consideration  on two fiscal 1998
acquisitions. These transactions were completed by payment of approximately $4.9
million in cash and the assumption of certain liabilities.

     On April 30, 1998, Globe acquired certain assets of privately owned Express
Rental,  Inc., dba Express Furniture Rental ("EFR"),  which is based in Ventura,
California  and operates in the  rent-to-rent  segment of the  furniture  rental
business.  The assets  acquired  consist of EFR's Los Angeles  operations,  with
annual revenues of approximately $2.0 million.

     On May 1, 1998,  Globe acquired  substantially  all the assets of privately
owned Feld Corporate  Housing  ("FCH"),  which operates in Denver,  Colorado and
provides  short-term  housing to transferring or temporarily  assigned corporate
personnel,  new hires, trainees and consultants.  FCH maintained an inventory of
approximately 250 leased housing units at the time of acquisition and had annual
revenues of approximately $5.0 million for the year ended December 31, 1997.

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

     The purchase price allocation for the acquired businesses is as follows:


                                                                     (Unaudited)
                                                                   -------------

Cash, receivables and prepaids                                       $    (14)
Rental furniture                                                          810
Property and equipment                                                      -
Other assets                                                                -
Goodwill and other intangibles                                           4,345
                                                                      --------
                                                                         5,141
Liabilities assumed                                                       (289)
                                                                      ---------
                                                                      $  4,852
                                                                      ========

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

                                                      Three months ended May 31,
                                                      --------------------------
                                                           1998           1997
                                                       -----------     ---------
Revenues                                                 $  33,930     $  23,743
Net income                                                   1,173         1,310
Basic earnings per common share                          $    0.26     $    0.29
Diluted earnings per common share                        $    0.25     $    0.29
Weighted average number of common
  shares outstanding:
      Basic                                                  4,550         4,441
      Diluted                                                4,679         4,496

SUBSEQUENT EVENT

     On June 1, 1998, Globe acquired  substantially  all the assets of privately
owned Village Suites ("VS") for approximately  $7,700 in cash and the assumption
of certain  liabilities.  VS,  based in Detroit,  Michigan  with  operations  in
Illinois, Michigan, Minnesota, Ohio and Wisconsin provides short-term housing to
transferring or temporarily  assigned corporate personnel,  new hires,  trainees
and consultants.  VS maintained an inventory of approximately 770 leased housing
units at the time of acquisition and had annual revenues of approximately  $13.0
million for the year ended September 30, 1997.

NOTE 3 -- EARNINGS PER SHARE

     The Company  adopted  SFAS No.  128,  "Earnings  per Share",  in the fourth
quarter of fiscal 1998.  All earnings per share  amounts for prior  periods have
been restated to conform to this statement,  which had no material effect on the
previously reported earnings per share.

     For all periods  presented,  basic  earnings  per share was  calculated  by
dividing net income applicable to common stock by the weighted average number of
shares outstanding during the period.

     For all periods  presented,  diluted  earnings per share was  calculated by
dividing net income applicable to common stock by the weighted average number of
shares and  dilutive  potential  common  shares  outstanding  during the period.
Potential  common shares  include  outstanding  stock  options and  contingently
issuable shares.

<PAGE>


     The following table presents the calculation of basic and diluted  earnings
per share for the periods indicated.

                                                      Three months ended May 31,
                                                      -------------------------
                                                         1998            1997
                                                      ----------       --------
                                                              (Unaudited)

Net income used to calculate basic and diluted        
  earnings per share                                  $ 1,075           $ 1,162
                                                      =======           =======



Weighted average common shares used to calculate
  basic earnings per share                              4,550             4,441
                                                      =======           =======


Basic earnings per common share                       $  0.24           $  0.26
                                                      =======           =======



Shares used in the calculation of                      
diluted earnings per share:
  Weighted average common shares                        4,550             4,441
  Dilutive effect of assumed exercise
    of options for the purchase 
    of common shares                                       57                46
  Dilutive effect of assumed issuance of
    contingently issuable shares                           72                 9
                                                      -------          --------

Weighted average common shares used to calculate
    diluted earnings per share                          4,679             4,496
                                                      =======           =======

Diluted earnings per common share                     $  0.23          $   0.26
                                                      =======           =======


NOTE 4 -- RENTAL FURNITURE

        Rental furniture consists of the following:


                                                   May 31,          February 28,
                                                    1998                1998
                                                 -----------        ------------
                                                 (unaudited)

Furniture on rental                               $42,999             $41,884
Furniture on hand                                  21,074              21,537
                                                 --------            --------
                                                   64,073              63,421
Accumulated depreciation                          (10,459)            (10,201)
                                                 ---------           ---------
                                                  $53,614             $53,220
                                                  =======             =======

<PAGE>


NOTE 5 -- DEBT

     Outstanding debt consists of:


                                                      May 31,       February 28,
                                                       1998              1998
                                                      --------      ------------
                                                     (Unaudited)

The Fifth Third Bank, PNC Bank and
  Norwest Bank unsecured revolving note,
  average interest of 7.31%                           $ 20,493       $      -

The Fifth Third Bank and PNC Bank unsecured
  revolving note, average interest of 7.39%                  -         16,476

7.54% Senior Notes, unsecured, interest
  payable semi-annually on March 1 and
  September 1, due September 1, 2007                    30,000         30,000

6.0% note payable to seller of acquired
  business, payable in monthly installments,
  due December 31, 2000                                    775            850

7.5% note payable to seller of acquired
  business, payable in monthly 
  installments, due November 2, 1998                       157            181

7.2% mortgage note payable to 
  The Fifth Third Bank, interest 
  payable in monthly installments,
  due December 1, 2002                                   1,496          1,510

Capital lease obligations                                  612            696
                                                      --------       --------
                                                      $ 53,533       $ 49,713
                                                      ========       ========

     The funds  required  for the EFR and FCH  acquisitions  were  derived  from
borrowings under the Company's unsecured revolving Credit Agreement.

     On May 14, 1998,  the Company's  $30 million  unsecured  revolving  line of
credit with the Fifth Third Bank and PNC Bank was increased,  by amendment, to a
$45 million  unsecured  revolving  line of credit with The Fifth Third Bank, PNC
Bank and Norwest Bank.  Interest rates, unused facility fees and other terms are
unchanged from the original  revolving  Credit  Agreement.  At May 31, 1998, the
revolving  Credit   Agreement   provided  a  total  unused  credit  facility  of
approximately $24.5 million.

<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 both the corporate housing and rent-to-rent  furniture  businesses.
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.  The  rent-to-rent  furniture  business rents quality
office and  residential  furniture  to a variety  of  corporate  and  individual
customers. 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.

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  corporate  housing,  rental and  retail  sales
revenues.



                                                  For the three months ended,
                                                --------------------------------
                                                May 31, 1998        May 31, 1997
                                                ------------        ------------

Revenues:
  Corporate housing sales                           51.3%                 31.9%
  Rental sales                                      34.5%                 51.0%
  Retail sales                                      14.2%                 17.1%
                                                ---------             ---------
    Total revenues                                 100.0%                100.0%

Gross profit:
  Corporate housing sales                           28.9%                 31.7%
  Rental sales                                      93.0%                 91.2%
  Retail sales                                      39.3%                 36.4%
                                                ---------              ---------
  Gross profit before depreciation 
    and disposals                                   52.5%                 62.8%
  Furniture depreciation and disposals              (7.1%)                (9.8%)
                                                ---------              --------
    Combined gross profit                            45.4%                53.1%

Operating expenses                                   35.7%                40.8%
Amortization of intangible assets                     1.3%                 0.7%
                                                ----------              --------
Operating income                                      8.4%                11.5%
Interest/other                                        3.0%                 2.9%
                                                ----------              --------
Income before taxes                                   5.4%                 8.6%
                                                ==========              ========


<PAGE>


Impact of Corporate Housing Acquisitions

     Globe entered the corporate housing business in fiscal 1997 by making three
acquisitions.  Seven additional  corporate  housing  businesses were acquired in
fiscal 1998. Globe continued its corporate  housing  acquisition  program during
the first quarter of fiscal 1999 with the acquisition of Feld Corporate  Housing
in May  1998.  Another  corporate  housing  acquisition  was made in June  1998,
subsequent to completion of the first  quarter.  All  acquisitions  to date have
been accounted for using the purchase method of accounting.

     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 corporate housing  acquisitions  approximates  $31.0 million and is being
amortized on a  straight-line  basis  primarily over twenty years.  Goodwill and
intangibles  amortization,  which is a separate component of operating expenses,
reduced  operating  profit by $0.4  million,  or 1.3% of revenues,  in the first
quarter  of fiscal  1999 and $0.2  million,  or 0.7% of  revenues,  in the first
quarter of fiscal 1998.

     The corporate  housing business has a lower gross profit margin, as well as
lower operating expenses as a percentage of revenues,  than the furniture rental
business.  As a result, the Company's gross profit margin and operating expenses
as a percentage of revenues have been  declining  since the Company  entered the
corporate housing business.  Gross profit margin decreased to 45.4% in the first
quarter of fiscal 1999 from 53.1% in the first quarter of fiscal 1998, resulting
from the larger  percentage of total revenues from  corporate  housing (51.3% in
the first quarter of fiscal 1999 versus 31.9% in the comparable period of fiscal
1998).  Gross profit  margin on rental sales in the first quarter of fiscal 1999
was 93.0%,  versus 28.9% for corporate housing.  Comparable gross profit margins
for the first quarter of fiscal 1998 were 91.2% and 31.7%, respectively. Because
the  Company  is  integrating  its  furniture   rental  and  corporate   housing
operations,  these gross profit percentages  exclude furniture  depreciation and
disposals which can no longer be separately identified.  An additional result of
this integration is that operating  expenses and,  therefore,  operating margins
for furniture  rental and corporate  housing cannot be specifically  identified.
Combined operating expenses,  excluding goodwill, decreased to 35.7% of revenues
in the first  quarter of fiscal  1999 from 40.8% in the first  quarter of fiscal
1998,  while the  operating  margin,  including  goodwill,  decreased to 8.4% of
revenues in the first quarter of fiscal 1999 from 11.5% of revenues in the first
quarter of fiscal  1998.  The  reduction in  operating  margin is primarily  the
result of the increasing mix of corporate  housing  revenues over the comparable
periods,  additions to the Company's management team and related  infrastructure
spending  to support  the  Company's  rapid  growth,  and  greater  amortization
expenses. Excluding amortization expenses, operating margins declined to 9.7% in
the first quarter of fiscal 1999 from 12.2% in the first quarter of fiscal 1998.

     Globe plans to continue  its  consolidation  of corporate  housing  through
additional acquisitions, thereby capitalizing on the desire of many corporations
to have a corporate housing company that can meet their needs  nationally.  With
the  acquisitions  to date,  Globe has  expanded its  presence  into  twenty-two
markets  and is the  market  leader in nine of these  markets,  with  annualized
corporate  housing  revenues in excess of $90  million.  Globe is vying with two
other corporate housing companies for the number two position in the industry.

     As Globe  increases  its presence in the  corporate  housing  business some
competing  corporate  housing companies that are customers of Globe may transfer
their furniture  rental business to other vendors.  At the end of June 1998, the
Company's   annualized   revenues  from  these   corporate   housing   companies
approximated $9.5 million.

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

<PAGE>


Comparison of First Quarter Fiscal 1999 to First Quarter Fiscal 1998

     Total revenues of $32.9 million  increased $10.7 million,  or 48.2%, in the
first quarter of fiscal 1999,  from $22.2 million in the first quarter of fiscal
1998,  primarily  due to  acquisitions  which  occurred  subsequent to the first
quarter of fiscal 1998.  Excluding  the  corporate  housing  operations  and the
impact of intercompany eliminations,  total revenues increased 9.6% in the first
quarter of fiscal 1999 compared to the first quarter of fiscal 1998.

     Corporate  housing revenues of $16.9 million in the first quarter of fiscal
1999  increased  138.3% from $7.1  million in the first  quarter of fiscal 1998.
This increase was primarily  caused by  acquisitions  which  occurred  after the
first quarter of fiscal 1998.

     Rental  revenues of $11.3  million in the first quarter of fiscal 1999 were
flat when compared to the first quarter of fiscal 1998 due to the elimination of
revenues from corporate housing customers  acquired by the Company subsequent to
the  first  quarter  of  fiscal  1998.  Excluding  the  impact  of  intercompany
eliminations, rental revenues increased 5.1%.

     Sales  revenues of $4.7 million  increased $0.9 million,  or 22.9%,  in the
first  quarter of fiscal 1999 from $3.8  million in the first  quarter of fiscal
1998,  driven by an increase of $0.6  million,  or 37.7%,  in  clearance  center
revenues  over the period.  The  additional  $0.3 million  increase is primarily
attributable to increased sales of new office  furniture in the first quarter of
fiscal 1999 versus the first quarter of fiscal 1998.

     Gross profit of $14.9 million in the first quarter of fiscal 1999 increased
$3.1 million,  or 26.7%,  from $11.8 million in the first quarter of fiscal 1998
and  declined  as a  percentage  of  revenues  to 45.4% from 53.1% over the same
period due to the higher mix of corporate housing revenues and the lower margins
associated  with these  revenues.  Gross  profit on both rental and retail sales
revenues  improved versus the comparable  prior year period.  Corporate  housing
gross  profit  declined  versus the  comparable  prior year period but  improved
versus the gross profit levels which were experienced in the last nine months of
fiscal 1998 as the Company is actively  addressing  occupancy  levels at certain
corporate housing locations.

     Operating  expenses  of $12.2  million in the first  quarter of fiscal 1999
increased  31.9%  from $9.2  million in the first  quarter  of fiscal  1998 as a
result of  acquisitions,  as well as additions to the Company's  management team
and related infrastructure spending to support the Company's rapid growth, which
occurred  subsequent  to the first  quarter of fiscal 1998.  As a percentage  of
total revenues, these expenses declined to 37.0% from 41.6% over the same period
as a result of  corporate  housing's  lower  operating  expenses as a percent of
revenues.  The  investment in management  and  infrastructure  should enable the
Company to continue  its  acquisition  strategy  without  incurring  significant
additional overhead.

     As a result of the changes in revenues, gross profit and operating expenses
discussed above,  operating  income  increased 8.0% to $2.8 million,  or 8.4% of
revenues in the first  quarter of fiscal 1999,  from $2.6  million,  or 11.5% of
revenues in the first quarter of fiscal 1998.

     Interest/other  expense increased $0.4 million to $1.0 million in the first
quarter of fiscal 1999 from $0.6 million in the first quarter of fiscal 1998 and
as a percentage of total revenues  increased slightly to 3.0% from 2.9% over the
same period.  The increased  expense for fiscal 1999 was due primarily to higher
debt balances than in the  comparable  period of fiscal 1998.  The debt increase
was the result of funding required for acquisitions.

     Income  before  income taxes of $1.8 million in the first quarter of fiscal
1999  declined $0.1  million,  or 7.5%,  compared to the first quarter of fiscal
1998 and as a percentage  of revenues  decreased to 5.4% from 8.6% over the same
period.

     The Company's  effective tax rate, which includes federal,  state and local
taxes, remained flat at 39.0% in the first quarter of fiscal 1999 as compared to
the first quarter of fiscal 1998.


<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

     On May 14, 1998, the Company's  $30.0 million  unsecured line of credit was
increased to $45.0 million. 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 July 3,  1998,  the
unused line of credit was $15.8 million, which is available for acquisitions and
general corporate purposes.

     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.

     From March 1, 1998  through  July 3, 1998 Globe  used  approximately  $12.6
million  from its lines of credit  and  assumed  approximately  $0.7  million of
certain  liabilities  in  completing  three  acquisitions  and settling  certain
contingent  consideration for two fiscal 1998  acquisitions.  (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 $5.2 million in the first three months of fiscal 1999
and $6.3 million in the first three  months of fiscal  1998.  The lower level of
purchases  in the first  quarter of fiscal  1999  versus  the prior year  period
reflects the Company's  efforts to better manage inventory  utilization.  As the
Company's growth strategies are implemented, furniture purchases are expected to
increase.

     Capital  expenditures were $0.8 million and $1.6 million in the first three
months of fiscal 1999 and 1998,  respectively.  Current year  expenditures  were
financed through cash provided by operations  while the prior year  expenditures
were financed  primarily by a $1.5 million  mortgage loan.  Expenditures for the
first  three  months  of fiscal  1999 were  largely  attributable  to  continued
development of computer  systems.  The decrease from the prior year results from
the completion of construction of a showroom/warehouse facility in Indianapolis,
Indiana during fiscal 1998. Costs to further develop the computer systems, which
are anticipated to be approximately  $1.3 million,  will be incurred in the next
9-12  months  and  are  expected  to  be  financed  through  cash  generated  by
operations.

     In the first  three  months of fiscal 1999 and 1998,  net cash  provided by
operations  was $6.9 million and $7.1  million,  respectively,  generating  $0.9
million more cash than was  necessary to fund  investing  activities  (excluding
acquisitions)  in the first three  months of fiscal 1999 and $0.9  million  less
cash than was necessary to fund investing activities (excluding acquisitions) in
the first three months of fiscal 1998. The improvement in cash flow in the first
quarter of fiscal 1999 is the result of the lower levels of furniture  purchases
and capital expenditures in the current year period discussed above.

     Aside from acquisitions,  furniture purchases, which have historically been
seasonally weighted to the first half of the fiscal year, are the primary reason
for use of the credit facilities. Any temporary cash deficiencies resulting from
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,  other than  significant  acquisitions and any repurchases that
may be made  under  the  Company's  authorized  $3.0  million  stock  repurchase
program, for the foreseeable future.

YEAR 2000

     The  Company's  internal  financial and  operational  systems are Year 2000
compliant.  Management  is not aware of exposures  related to the  operations of
customers  or vendors.  No material  adverse  consequences  are  anticipated  in
conjunction  with the Year 2000 issue and  management  intends  to  monitor  the
situation on an ongoing basis.

<PAGE>


                                     PART II


                                     ITEM 1
                                Legal Proceedings

                                      None


                                     ITEM 2
                              Changes in Securities

                                      None


                                     ITEM 3
                         Defaults Upon Senior Securities

                                      None


                                     ITEM 4
               Submission of Matters to a Vote of Security Holders

                                      None


                                     ITEM 5
                                Other Information

                                      None


                                     ITEM 6
         Exhibits, Financial Statement Schedules and Reports on Form 8-K


(a)     Exhibits:

        10.5.1        Amendment to Credit  Agreement among the  Registrant,  The
                      Fifth Third Bank,  PNC Bank and Norwest Bank dated May 14,
                      1998.

        27            Financial Data Schedule

        99            Safe Harbor Statement

 (b)    Reports on Form 8-K filed during the first quarter of 1999:

        Form 8-K filed May 18, 1998 for the Feld Corporate Housing acquisition.

<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
                                             ---------------------------------
                                                 Sharon G. Kebe
                                                 Senior Vice President-Finance
                                                 and Treasurer
                                                 (Principal Financial Officer)

Signed:  July 9, 1998