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 August 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  September  30, 1998,  4,556,437  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, 1998 and February 28, 1998

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

                        Consolidated Statement of Cash Flows -              5
                        Six months ended August 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                                  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                                  16

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




                                     Page 2


<PAGE>



                         PART I - FINANCIAL INFORMATION

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



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

ASSETS:
Cash                                                     $     615    $     526
Trade accounts receivable, less allowance for 
  doubtful accounts of $689 and $609, 
  respectively                                              10,343        8,252
Other receivables                                              696          131
Prepaid expenses                                             4,498        2,038
Rental furniture, net                                       56,414       53,220
Property and equipment, net                                  8,082        7,743
Goodwill and other intangibles, less accumulated
  amortization of $2,166 and $1,228, respectively           37,903       26,695
Note receivable from officer                                   100          100
Other, net                                                     798          732
                                                         ---------    ---------
  Total assets                                           $ 119,449    $  99,437
                                                         =========    =========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Accounts payable                                         $   6,574    $   3,561
Customer deposits                                            2,434        2,027
Accrued compensation                                         2,515        2,061
Accrued taxes                                                  889          325
Deferred income taxes                                        4,122        4,183
Accrued interest payable                                     1,575        1,121
Other accrued expenses                                       1,268        1,025
Debt                                                        61,958       49,713
                                                         ---------    ---------
  Total liabilities                                         81,335       64,016
                                                         ---------    ---------

Common stock and other shareholders' equity:
  Common stock, no par, 15,000,000 shares
    authorized, 4,556,025, and 4,548,399
    shares issued and outstanding                           21,501       21,492
  Retained earnings                                         20,697       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         38,114       35,421
                                                         ---------    ---------

  Total liabilities and shareholders' equity             $ 119,449    $  99,437
                                                         =========    =========



   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,
                                      1998        1997       1998       1997
                                   ----------  ---------- ----------  ----------
                                        (Unaudited)            (Unaudited)

Revenues:
     Corporate housing sales       $ 24,490    $  9,390   $ 41,348    $  16,464
     Rental sales                    11,123      12,282     22,478       23,600
     Retail sales                     4,063       3,414      8,732        7,214
                                   --------    --------   --------    ---------
                                     39,676      25,086     72,558       47,278
                                   --------    --------   --------    ---------
Cost of revenues:
     Cost of corporate housing
       sales                         16,684       6,758     28,666       11,590
     Cost of rental sales               673         779      1,471        1,779
     Cost of retail sales             2,446       2,138      5,280        4,553
     Furniture depreciation 
       and disposals                  2,501       2,140      4,850        4,310
                                    -------    --------    --------   ----------
                                     22,304      11,815     40,267       22,232
                                    -------    --------   --------    ---------

Gross profit                         17,372      13,271     32,291       25,046

Operating expenses:
     Warehouse and delivery           2,869       2,489      5,445        4,779
     Occupancy                        1,878       1,730      3,732        3,397
     Selling and advertising          2,953       2,166      5,587        4,477
     General and administration       5,251       3,460      9,921        6,253
     Amortization of intangible
       assets                           511         208        938          369
                                    -------    --------   --------    ---------
                                     13,462      10,053     25,623       19,275
                                    -------    --------   --------    ---------
 
Operating income                      3,910       3,218      6,668        5,771

Other expenses:
     Interest expense                 1,145         752      2,109        1,353
     Other, net                          35          29         66           75
                                    -------    --------   --------    ---------
                                      1,180         781      2,175        1,428

Income before income taxes            2,730       2,437      4,493        4,343

Provision for income taxes            1,065         951      1,753        1,695
                                    -------    --------   --------    ---------

Net income                          $ 1,665    $  1,486   $  2,740    $   2,648
                                    =======    ========   ========    =========

Earnings per common share:
     Basic                          $  0.37    $   0.33   $   0.60    $    0.60
                                    =======    ========   =========   =========
     Diluted                        $  0.36    $   0.33   $   0.59    $    0.59
                                    =======     ========   =========  =========

Weighted average number of 
  common shares outstanding:
     Basic                            4,556       4,443      4,553        4,442
     Diluted                          4,681       4,545      4,680        4,522

   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,
                                                         1998            1997
                                                      ----------      ----------
                                                              (Unaudited)


CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                              $  2,740      $  2,648
Adjustments to reconcile net income to
  net cash provided by operating activities:
    Rental furniture depreciation                          3,924         3,523
    Other depreciation and amortization                    1,963         1,023
    Provision for losses on accounts receivable              324           255
    Provision for deferred income taxes                      (61)          887
    Gain on sale of property and equipment                    (6)           (4)
    Book value of furniture sales and rental buyouts       6,874         5,932
    Changes in assets and liabilities:
      Accounts receivable                                 (3,049)       (2,634)
      Note receivable                                         --            --
      Other assets, net                                      (32)           (6)
      Prepaid expenses                                    (1,754)          127
      Accounts payable                                     3,012           959
      Customer deposits                                      345           144
      Accrued compensation                                   333          (181)
      Accrued taxes                                          564           279
      Accrued interest payable                               454           393
      Other accrued expenses                                 (55)          178
                                                        --------      --------
        Net cash provided by operating activities         15,576        13,523
                                                        --------      --------

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to rental furniture                            (12,897)      (12,132)
Purchases of property and equipment                       (1,354)       (2,503)
Proceeds from disposition of property and equipment            6             7
Purchases of businesses, net of cash acquired            (13,492)       (5,432)
                                                        --------      --------
        Net cash used in investing activities            (27,737)      (20,060)
                                                        --------      --------

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on the revolving credit agreement              87,160        56,316
Repayments on the revolving credit agreement             (74,543)      (50,885)
Borrowings on the senior note                                 --            --
Borrowings/(repayments) of other debt                       (150)        1,370
Principal payments under capital lease obligations          (222)         (211)
Exercise of common stock options                               5             6
                                                        --------      --------
        Net cash provided by financing activities         12,250         6,596
                                                        --------      --------

Net increase in cash                                          89            59
Cash at beginning of period                                  526           717
                                                        --------      --------
Cash at end of period                                   $    615      $    776
                                                        ========      ========


   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,
1998,  and the  results of its  operations  for the three and six  months  ended
August 31, 1998 and 1997 and its cash flows for the six months  ended August 31,
1998 and 1997. All adjustments are of a normal recurring nature. 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 six months of fiscal  1999,  the Company  completed  three
asset  acquisitions and settled certain  contingent  consideration on two fiscal
1998 acquisitions. These transactions were completed by payment of approximately
$13.5  million in cash and the  assumption  of certain  liabilities.  One of the
fiscal 1999 acquisitions  operates in the rent-to-rent  segment of the furniture
rental  business.  The  remaining  acquisitions,  which include the June 1, 1998
purchase of  Detroit-based  Village  Suites,  operate in the  corporate  housing
business,  providing  short-term housing to transferring or temporarily assigned
corporate personnel,  new hires,  trainees and consultants.  At their respective
dates  of  acquisition,   these  businesses   maintained   inventories  totaling
approximately  1,000 leased housing units and had annual  revenues in their most
recent fiscal year totaling approximately $18.0 million.

     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                                        $    637
Rental furniture                                                         1,095
Property and equipment                                                      10
Other assets                                                                34
Goodwill and other intangibles                                          12,146
                                                                      --------
                                                                        13,922
Liabilities assumed                                                      (430)
                                                                      --------
                                                                      $ 13,492
                                                                      ========



                                     Page 6


<PAGE>




     The following table sets forth certain Globe consolidated  income statement
data on a pro forma basis, as if the fiscal 1999  acquisitions were completed at
the beginning of the periods indicated.



                                                     Six months ended August 31,
                                                     ---------------------------
                                                        1998              1997
                                                     ---------         ---------

Revenues                                               $77,968          $56,549
Net income                                               3,074            2,982
Basic earnings per common share                        $  0.68          $  0.67
Diluted earnings per common share                      $  0.66          $  0.66
Weighted average number of common
  shares outstanding:
      Basic                                              4,553            4,442
      Diluted                                            4,680            4,522


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 7


<PAGE>


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


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


Net income used to calculate basic
  and diluted earnings per share      $ 1,665    $ 1,486     $ 2,740    $ 2,648
                                      =======    =======     =======    =======
Weighted average common shares 
  used to calculate basic 
  earnings per share                    4,556      4,443       4,553      4,442
                                      =======    =======     =======    =======

Basic earnings per common share       $  0.37    $  0.33     $  0.60    $  0.60
                                      =======    =======     =======    =======


Shares used in the calculation
   of diluted earnings
   per share:
  Weighted average common shares        4,556      4,443       4,553      4,442
  Dilutive effect of assumed 
   exercise of options for the 
   purchase of common shares               53         77          55         63
  Dilutive effect of assumed 
    issuance of contingently 
    issuable shares                        72         25          72         17
                                      -------     ------     -------     ------
Weighted average common shares 
  used to calculate
  diluted earnings per share            4,681      4,545       4,680      4,522
                                      ========    ======     =======     ======

Diluted earnings per common share     $   0.36   $  0.33     $  0.59     $ 0.59
                                      ========   =======     =======     ======


NOTE 4 -- RENTAL FURNITURE

     Rental furniture consists of the following:



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

Furniture on rental                         $ 45,815             $ 41,884
Furniture on hand                             21,744               21,537
                                            --------             --------
                                              67,559               63,421
Accumulated depreciation                     (11,145)             (10,201)
                                            --------             --------
                                            $ 56,414             $ 53,220
                                            ========             ========



                                     Page 8


<PAGE>




NOTE 5 -- DEBT

     Outstanding debt consists of:



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

The Fifth Third Bank, PNC Bank and
  Norwest Bank unsecured revolving note,
  average interest of 7.39%                              $29,106       $     -

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                                      700           850

7.5% note payable to seller of acquired   
  business, payable in monthly installments,
  due November 2, 1998                                       133           181

7.2% mortgage note payable to
  The Fifth Third Bank, interest 
  payable in monthly installments, 
  due December 1, 2002                                     1,481         1,510

Capital lease obligations                                    538           696
                                                         -------       -------
                                                         $61,958       $49,713
                                                         =======       ========

     The funds  required  for the fiscal 1999  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 August 31, 1998, the
revolving  Credit   Agreement   provided  a  total  unused  credit  facility  of
approximately $15.9 million.


                                     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 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                 For the
                                  three months ended,       six months ended,
                                 ----------------------   ----------------------
                                 August 31,  August 31,   August 31,  August 31,
                                    1998        1997         1998       1997
                                 ----------  ----------   ----------  ----------

Revenues:
  Corporate housing sales           61.7%       37.4%        57.0%       34.8%
  Rental sales                      28.0%       49.0%        31.0%       49.9%
  Retail sales                      10.2%       13.6%        12.0%       15.3%
                                   ------      ------       ------      ------
    Total revenues                 100.0%      100.0%       100.0%      100.0%
Gross profit:
  Corporate housing sales           31.9%       28.0%        30.7%       29.6%
  Rental sales                      93.9%       93.7%        93.5%       92.5%
  Retail sales                      39.8%       37.4%        39.5%       36.9%
                                   ------      ------       ------      ------
  Gross profit before 
    depreciation and disposals      50.1%       61.4%        51.2%       62.1%
  Furniture depreciation
    and disposals                   (6.3%)      (8.5%)       (6.7%)      (9.1%)
                                   ------      ------       ------      ------
    Combined gross profit           43.8%       52.9%        44.5%       53.0%

Operating expenses                  32.6%       39.2%        34.0%       40.0%
Amortization of intangible
  assets                             1.3%        0.8%         1.3%        0.8%
                                   ------      ------       ------      ------
Operating income                     9.9%       12.8%         9.2%       12.2%
Interest/other                       3.0%        3.1%         3.0%        3.0%
                                   ------      ------       ------      ------
Income before taxes                  6.9%        9.7%         6.2%        9.2%
                                   ======      ======       ======      ======


                                     Page 10

<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 two quarters of fiscal 1999 with the  acquisitions  of Feld  Corporate
Housing in May 1998 and Village  Suites in June 1998. 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  $38.8 million and is being
amortized  on  a  straight-line   basis  over  periods  ranging  from  three  to
thirty-five  years,  with a weighted average life of approximately  twenty-three
years. Goodwill and intangibles  amortization,  which is a separate component of
operating  expenses,  reduced  operating  profit  by  $0.9  million,  or 1.3% of
revenues,  in the first six months of fiscal 1999 and $0.4  million,  or 0.8% of
revenues, in the first six months 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 44.5% in the first
six months of fiscal  1999 from  53.0% in the first six  months of fiscal  1998,
resulting from the larger  percentage of total  revenues from corporate  housing
(57.0% in the first six months of fiscal  1999  versus  34.8% in the  comparable
period of fiscal  1998).  Gross  profit  margin on rental sales in the first six
months of fiscal 1999 was 93.5%, versus 30.7% for corporate housing.  Comparable
gross  profit  margins  for the first six  months of fiscal  1998 were 92.5% and
29.6%, 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 34.0% of revenues in the first six months of fiscal 1999 from 40.0%
in the first six months of fiscal 1998,  while the operating  margin,  including
goodwill,  decreased  to 9.2% of revenues in the first six months of fiscal 1999
from 12.2% of revenues in the first six months 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 10.5% in the first six months of fiscal
1999 from 13.0% in the first six months 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-three
markets  and is the  market  leader in nine of these  markets,  with  annualized
corporate housing revenues of approximately $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 September 1998,
the  Company's  annualized  revenues  from  these  corporate  housing  companies
approximated $8.9 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 11

<PAGE>

COMPARISON OF SECOND QUARTER FISCAL 1999 TO SECOND QUARTER FISCAL 1998

     Total revenues of $39.7 million  increased $14.6 million,  or 58.2%, in the
second  quarter  of fiscal  1999,  from $25.1  million in the second  quarter of
fiscal 1998,  primarily due to  acquisitions.  Excluding  the corporate  housing
operations and the impact of the elimination of revenues from acquired corporate
housing customers, total revenues increased 5.7% in the second quarter of fiscal
1999 when compared to the second quarter of fiscal 1998.

     Corporate  housing sales of $24.5  million in the second  quarter of fiscal
1999  increased  160.8% from $9.4 million in the second  quarter of fiscal 1998.
This increase was primarily  caused by  acquisitions  which  occurred  after the
second quarter of fiscal 1998.

     Rental  sales of  $11.1  million  in the  second  quarter  of  fiscal  1999
decreased  9.4% from $12.3 million in the second  quarter of fiscal 1998 largely
as a  result  of  intercompany  eliminations.  Excluding  the  impact  of  these
eliminations,   rental  revenues   increased  2.0%.  The  moderate  increase  is
attributable  to a loss  of  business  from  some  competing  corporate  housing
customers and a general slowdown in growth in the industry.

     Retail sales of $4.1  million  increased  $0.7  million,  or 19.0%,  in the
second  quarter of fiscal 1999 from $3.4 million in the second quarter of fiscal
1998,  driven by  increases of 46.5% in new office  furniture  sales and 7.8% in
clearance center revenues over the comparable prior year period.

     Gross  profit  of $17.4  million  in the  second  quarter  of  fiscal  1999
increased  $4.1 million,  or 30.9%,  from $13.3 million in the second quarter of
fiscal 1998 and  declined as a  percentage  of revenues to 43.8% from 52.9% over
the same  period due to the higher mix of  corporate  housing  revenues  and the
lower margins associated with these revenues.  Gross profit percent on corporate
housing, rental and retail sales revenues all improved during the second quarter
of fiscal 1999 versus the comparable prior year period.

     Operating  expenses of $13.5  million in the second  quarter of fiscal 1999
increased  33.9% from $10.1  million in the second  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. As a
percentage of total revenues,  these expenses  declined to 33.9% from 40.1% 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 21.5% to $3.9 million,  or 9.9% of
revenues in the second  quarter of fiscal 1999,  from $3.2 million,  or 12.8% of
revenues in the second quarter of fiscal 1998.

     Interest/other expense increased $0.4 million to $1.2 million in the second
quarter of fiscal  1999 from $0.8  million in the second  quarter of fiscal 1998
and as a percentage of total revenues  decreased to 3.0% from 3.1% 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 $2.7 million in the second  quarter of fiscal
1999 increased $0.3 million, or 12.0%,  compared to the second quarter of fiscal
1998 and as a percentage  of revenues  decreased to 6.9% from 9.7% over the same
period.

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

COMPARISON OF SIX MONTHS ENDED AUGUST 31, 1998 TO
SIX MONTHS ENDED AUGUST 31, 1997

     Total revenues of $72.6 million  increased $25.3 million,  or 53.5%, in the
first six months of fiscal 1999,  from $47.3  million in the first six months of
fiscal 1998, primarily due to acquisitions.

     Excluding the corporate  housing  operations and the impact of intercompany
eliminations,  total  revenues  increased 8.4% in the first six months of fiscal
1999 compared to the first six months of fiscal 1998.

                                    Page 12

<PAGE>

     Corporate  housing sales of $41.3 million in the first six months of fiscal
1999  increased  151.1% from $16.5  million in the first quarter of fiscal 1998.
This increase was primarily caused by acquisitions.

     Rental  sales of $22.5  million  in the  first six  months  of fiscal  1999
decreased  4.8% from $23.6 million in the first six months of fiscal 1998 due to
intercompany  eliminations.  Excluding the impact of intercompany  eliminations,
rental  revenues  increased a moderate 4.5%,  reflecting the impact of a general
slowdown in growth in the  industry and a loss of business  from some  competing
corporate housing customers.

     Retail sales of $8.7 million increased $1.5 million, or 21.0%, in the first
six  months of fiscal  1999 from $7.2  million in the first six months of fiscal
1998,  driven by increases of 38.0% in new office  furniture  sales and 22.4% in
clearance center revenues versus the comparable prior year period.

     Gross  profit  of $32.3  million  in the first  six  months of fiscal  1999
increased $7.3 million,  or 28.9%, from $25.0 million in the first six months of
fiscal 1998 and  declined as a  percentage  of revenues to 44.5% from 53.0% over
the same  period due to the higher mix of  corporate  housing  revenues  and the
lower margins associated with these revenues.  Gross profit percent on corporate
housing,  rental and retail sales  revenues all improved  versus the  comparable
prior year period.

     Operating  expenses of $25.6 million in the first six months of fiscal 1999
increased  32.9% from $19.3  million in the first six months 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. As a
percentage of total revenues,  these expenses  declined to 35.3% from 40.8% 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 15.5% to $6.7 million,  or 9.2% of
revenues in the first six months of fiscal 1999, from $5.8 million,  or 12.2% of
revenues in the first six months of fiscal 1998.

     Interest/other  expense increased $0.8 million to $2.2 million in the first
six  months of fiscal  1999 from $1.4  million in the first six months of fiscal
1998 and remained  flat at 3.0% of total  revenues.  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 $4.5  million  in the first six  months of
fiscal 1999 increased $0.1 million, or 3.5%, compared to the first six months of
fiscal 1998 and as a percentage of revenues decreased to 6.2% from 9.2% over the
same period.

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

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 September 30, 1998, the
unused line of credit was $15.4 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.



                                    Page 13

<PAGE>




     From March 1, 1998 through October 2, 1998 Globe used  approximately  $13.5
million  from its lines of credit  and  assumed  approximately  $0.4  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 $12.9  million in the first six months of fiscal 1999
and $12.1  million in the first six months of fiscal  1998.  The higher level of
purchases  in the first six months of fiscal  1999  versus the prior year period
reflects  the impact of the growth in the  corporate  housing  business  and the
ongoing  replacement  of furniture  rented from third parties with company owned
furniture.  As  the  Company's  growth  strategies  are  implemented,  furniture
purchases are expected to increase.

     Capital  expenditures  were $1.4  million and $2.5 million in the first six
months of fiscal  1999 and 1998,  respectively.  Expenditures  for the first six
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  $1.0 million,  will be incurred in the next 6-9
months and are expected to be financed through cash generated by operations.

     In the first  six  months of fiscal  1999 and 1998,  net cash  provided  by
operations was $15.6 million and $13.5 million,  respectively,  generating  $1.3
million more cash than was  necessary to fund  investing  activities  (excluding
acquisitions)  in the first six months of fiscal 1999 and $1.1 million less cash
than was necessary to fund investing activities (excluding  acquisitions) in the
first six months of fiscal 1998.  The  improvement in cash flow in the first six
months of fiscal 1999 results from the growth of the corporate housing business,
which traditionally has a better cash flow than the furniture rental business.

     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 for the foreseeable future, except for significant  acquisitions
and any repurchases that may be made under the Company's authorized $3.0 million
stock repurchase program.

YEAR 2000

     The Company has  developed a Year 2000  Remediation  Plan and is  currently
evaluating the potential  impact of the Year 2000 issue on both its  information
technology  systems  and its  non-information  technology  systems.  The initial
phases of the plan consist of planning  and  assessment  and involve  developing
complete  inventories  of all hardware and software  containing  potential  date
sensitivity,  completing  vendor and customer surveys and performing a series of
controlled tests to determine  compliance.  These phases are  approximately  25%
complete.  Preliminary  results  indicate that the Company's  existing  internal
financial and operational  software is Year 2000 compliant,  and that a moderate
number of our desktop computers will need to be replaced.  The systems currently
under development have been designed to be Year 2000 compliant.

     Globe expects to have the initial phases of the remediation  plan completed
by February 28, 1999.  Costs incurred to date and those  anticipated to complete
the initial phases are immaterial to the Company's results of operations.

     Based upon the results of the initial phases, Globe will develop a detailed
remediation  and  contingency  plan. This plan will address such concerns as the
time  required  to replace  equipment  or  software  and  contingency  plans for
unforeseen Year 2000 failures, including the identification of alternate vendors
or  financial  institutions,  as well as the  financial  resources  necessary to
reasonably  ensure  compliance  by the Year 2000.  It is expected that this plan
will be  completed  by June 1, 1999.  No material  financial  ramifications  are
anticipated.



                                    Page 14

<PAGE>



     While  Globe  is not  aware  of  exposures  related  to the  operations  of
customers or vendors and it does not have a  relationship  with any  third-party
vendor which is material to its  operations,  there can be no assurance that the
systems of other  companies  on which the Company  relies will be converted in a
timely manner or that the failure to convert would not have an adverse impact on
Globe's operations.  Costs associated with any such failure cannot be reasonably
estimated.


                                     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

     The Company's  Annual  Meeting of  Shareholders  was held on July 14, 1998.
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,         4,418,979 votes for,       14,382 withheld
    b.     Blair D. Neller,         4,355,279 votes for,       78,082 withheld
    c.     Alvin Z. Meisel,         4,419,279 votes for,       14,082 withheld
    d.     William R. Griffin,      4,418,779 votes for,       14,582 withheld
    e.     Thomas C. Parise,        4,418,279 votes for,       15,082 withheld

2.  Adopted the Globe 1998 Stock Option and Incentive Plan, 4,055,007 votes for,
    375,909 votes against, 2,445 abstentions.

3.  Ratified the appointment of PricewaterhouseCoopers LLP as independent public
accountants  for fiscal 1999,  4,428,716  votes for, 2,750 votes against,  1,895
abstentions.



                                     Page 15


<PAGE>




                                     ITEM 5
                                OTHER INFORMATION

     A recent SEC rule change  establishes  new deadlines for  shareholders  who
desire to have proposals  included in the Notice for the Shareholders'  Meeting.
The form of Proxy  for the  Company's  Annual  Meeting  of  Shareholders  grants
authority to the persons  designated  as proxies to vote in their  discretion on
any matters that come before the meeting except those set forth in the Company's
Proxy  Statement and except for matters as to which adequate notice is received.
In order for a notice to be deemed  adequate  for the 1999 Annual  Shareholders'
Meeting, it must be received prior to April 21, 1999.


                                     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.*

          10.13    1998 Stock Option and Incentive Plan**

          27       Financial Data Schedule

          99       Safe Harbor Statement

     *  Incorporated  by  reference to the  Company's  Form 10-Q for the quarter
ended May 31, 1998.

     ** Incorporated by reference to the definitive proxy statement for the 1998
annual shareholders meeting.

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

         Form 8-K filed June 8, 1998 for the Village Suites acquisition.


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

Signed:  October 5, 1998
















                                     Page 17