===============================================================================

                       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 March 31, 2004    Commission file number: 0-3777


                        Petrie Stores Liquidating Trust
             (Exact Name of Registrant as Specified in Its Charter)

New York                                                      22-6679945
-------------------------------                           ---------------------
(State or Other Jurisdiction of                           (I.R.S. Employer
Incorporation or Organization)                            Identification No.)


201 Route 17, Suite 300
Rutherford, New Jersey                                        07070
----------------------------------------                  -------------
(Address of Principal Executive Offices)                    (Zip Code)


                                 (201) 635-9637
              ---------------------------------------------------
               Registrant's Telephone Number, Including Area Code


                                 Not Applicable
--------------------------------------------------------------------------------
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports); and (2) has been subject to such
filing requirements for the past 90 days.
         Yes: __X__         No: ____

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act.)
         Yes: ____          No: __X__

Indicate the number of shares outstanding of each of the registrant's classes
of common stock as of the latest practicable date: As of May 12, 2004, there
were 52,350,238 Units of Beneficial Interest outstanding.





===============================================================================

<PAGE>

                        PETRIE STORES LIQUIDATING TRUST

                               INDEX TO FORM 10-Q

PART I - FINANCIAL INFORMATION
                                                                           Page
Item 1.  Financial Statements
         Statements of Net Assets in Liquidation - March 31, 2004
               (Unaudited) and December 31, 2003............................ 2
         Statements of Changes in Net Assets in Liquidation
               (Unaudited) - For the Three Months Ended March 31,
               2004 and 2003................................................ 3
         Notes to Financial Statements...................................... 4
Item 2.  Management's Discussion and Analysis of Financial Condition
               and Results of Operations.................................... 9
Item 3.  Quantitative and Qualitative Disclosures About Market Risk ........12
Item 4.  Controls and Procedures............................................12

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings..................................................13
Item 6.  Exhibits and Reports on Form 8-K...................................13

<PAGE>

                        PETRIE STORES LIQUIDATING TRUST

                    STATEMENTS OF NET ASSETS IN LIQUIDATION

                                 (In thousands)
<TABLE>
<CAPTION>

                                                                     March 31, 2004        December 31, 2003
                                                                      (Unaudited)
                                                                     --------------        -----------------

Assets
<S>                                                                  <C>                   <C>
Cash and cash equivalents.....................................       $           33        $         1,168
U.S. Treasury obligations.....................................               43,979                 63,986
                                                                     --------------        -----------------
Total assets..................................................               44,012                 65,154

Liabilities
Accrued expenses and other liabilities........................               25,642                 25,595

Commitments and contingencies
                                                                     --------------        -----------------
Net assets in liquidation.....................................       $       18,370        $        39,559
                                                                     ==============        =================
</TABLE>

See accompanying notes.

<PAGE>


                        PETRIE STORES LIQUIDATING TRUST

               STATEMENTS OF CHANGES IN NET ASSETS IN LIQUIDATION

                                  (Unaudited)
                    (In thousands, except per unit amounts)

<TABLE>
<CAPTION>

                                                           Three Months Ended           Three Months Ended
                                                             March 31, 2004               March 31, 2003
                                                           ------------------           ------------------
<S>                                                        <C>                          <C>
Net assets in liquidation at beginning of period.....      $    39,559                  $    62,996
                                                           ------------------           ------------------
Investment income....................................              113                          246
Corporate overhead benefit (expense).................             (362)                        (245)
                                                           ------------------           ------------------
Net income (loss) for the period.....................             (249)                           1
                                                           ------------------           ------------------
Liquidating distributions............................          (20,940)                     (26,175)
                                                           ------------------           ------------------
Net assets in liquidation at end of period...........      $    18,370                  $    36,822
                                                           ------------------           ------------------
Net income per unit..................................      $      0.00                  $      0.00
                                                           ------------------           ------------------
Weighted average number of units.....................           52,350                       52,350
                                                           ------------------           ------------------
</TABLE>



See accompanying notes.

<PAGE>


                        PETRIE STORES LIQUIDATING TRUST
                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)

                                 March 31, 2004

1.       Interim Reporting

         The accompanying unaudited financial statements of Petrie Stores
Liquidating Trust (the "Liquidating Trust") have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of the Liquidating Trust, all adjustments (consisting of only
normal recurring accruals) considered necessary for a fair presentation have
been included. Results for the three months ended March 31, 2004 are not
necessarily indicative of the results that may be expected for the current
fiscal year. For further information, reference is made to the financial
statements and footnotes thereto included in the Liquidating Trust's Annual
Report on Form 10-K for the year ended December 31, 2003.

2.       Basis of Presentation

         The Liquidating Trust is the successor to Petrie Stores Corporation, a
New York corporation that was dissolved effective February 5, 1997 ("Petrie").
Prior to December 9, 1994, Petrie operated a chain of retail stores that
specialized in women's apparel and were located throughout the United States
(including Puerto Rico and the U.S. Virgin Islands). At Petrie's Annual Meeting
of Shareholders, held on December 6, 1994, Petrie's shareholders approved the
sale (the "Sale") to PS Stores Acquisition Corp. ("PS Stores") of all of the
stock of Petrie's former subsidiary, Petrie Retail, Inc. ("Petrie Retail"),
which then owned all of Petrie's retail operations, for $190 million in cash
plus the assumption of certain of Petrie's liabilities. At Petrie's Reconvened
Annual Meeting of Shareholders, held on January 24, 1995, Petrie's shareholders
approved (i) an exchange of shares of Toys "R" Us, Inc. ("Toys 'R' Us") common
stock ("Toys Common Stock") with Toys "R" Us (Note 3) and (ii) the liquidation
and dissolution of Petrie pursuant to a plan of liquidation and dissolution
(the "Plan of Liquidation").

         Pursuant to the Plan of Liquidation and the Agreement and Declaration
of Trust, dated as of December 6, 1995 (the "Liquidating Trust Agreement"),
between Petrie and the trustees named therein (the "Liquidating Trustees"),
effective as of the close of business on January 22, 1996 (the "Succession
Date"), Petrie transferred its remaining assets (then consisting of
approximately $131 million in cash and cash equivalents and 5,055,576 shares of
Toys Common Stock) to, and its remaining fixed and contingent liabilities were
assumed by (the "Succession"), the Liquidating Trust. The assets of the
Liquidating Trust are subject to various contingent liabilities, the status of
which is presently unclear (Note 5). On November 19, 2002, the expiration date
of the Liquidating Trust was extended from December 6, 2002 to December 6, 2006
(subject to further extension by the Liquidating Trustees).

         Beginning with the period ended December 31, 1996, the Liquidating
Trust adopted the calendar year as its fiscal year. A liquidation basis of
accounting was implemented as of January 28, 1995. The statements of net assets
in liquidation at March 31, 2004 and December 31, 2003 do not distinguish
between current and long-term balances as would be reflected if such statements
had been prepared on a going-concern basis.

         At the Succession Date, and as a result of the Succession, Petrie
ceased to be a taxable entity. The Liquidating Trust is a complete pass-through
entity for federal income taxes and, accordingly, is not itself subject to
federal income tax. Instead, each holder of units of beneficial interest in the
Liquidating Trust is required to take into account, in accordance with such
holder's method of accounting, his pro rata share of the Liquidating Trust's
items of income, gain, loss, deduction or credit, regardless of the amount or
timing of distributions to such holder.

3.       Investments in Common Stock

         Prior to February 12, 2000, the Liquidating Trust had investments in
Toys Common Stock. At March 31, 2004 and December 31, 2003, the Liquidating
Trust did not own any shares of Toys Common Stock.

4.       Liquidating Distributions

         Pursuant to an agreement dated as of December 24, 2003, the
Liquidating Trust and Toys "R" Us agreed to terminate the Liquidating Trust's
obligations under a letter agreement dated as of January 24, 1995 to provide
notice to Toys "R" Us (and an opportunity for Toys "R" Us to object) prior to
making any liquidating distributions. Accordingly, the Liquidating Trust is no
longer obligated to provide notice to Toys "R" Us prior to making
distributions.

         On January 30, 2004, the Liquidating Trust distributed to its unit
holders a total of $20,940,095 in cash. In the distribution, unit holders
received $0.40 in cash for each unit of beneficial interest held of record at
the close of business on January 20, 2004. This distribution is reflected in
the statement of changes in net assets in liquidation for the quarter ended
March 31, 2004.

         On January 31, 2003, the Liquidating Trust distributed to its unit
holders a total of $26,175,119 in cash. In the distribution, unit holders
received $0.50 in cash for each unit of beneficial interest held of record at
the close of business on January 21, 2003. This distribution is reflected in
the statement of changes in net assets in liquidation for the quarter ended
March 31, 2003.

5.       Commitments and Contingencies

         As successor to Petrie, the Liquidating Trust has accrued for certain
contingent liabilities with respect to existing or potential claims, lawsuits
and other proceedings, which primarily relate to guarantees of certain retail
store leases expiring at various times through 2011 for which Petrie Retail or
an affiliate thereof assumed liability, and certain other liabilities that were
assumed by Petrie Retail (but as to which Petrie's liability has not been
released) in connection with the Sale (collectively, the "Assumed Obligations")
to the extent that Petrie Retail or its successor fails to perform. The
Liquidating Trust accrues such liabilities when it is probable that future
costs will be incurred and when such costs can be reasonably estimated. Such
accruals are based on developments to date, the Liquidating Trust's estimates
of the outcome of these matters and its experience (including that of its
predecessor, Petrie) in contesting, litigating and settling such matters. At
both March 31, 2004 and December 31, 2003, the Liquidating Trust, as successor
to Petrie, had accrued approximately $25 million for the aforementioned
contingent liabilities. As the scope of these liabilities becomes further
refined, there may be changes in the estimates of future costs, which could
have a material effect on the Liquidating Trust's financial condition,
liquidity and future ability to make liquidating distributions.

         Petrie Retail's Bankruptcy. On October 12, 1995, Petrie Retail filed a
voluntary petition for reorganization relief under Chapter 11 of the United
States Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District
of New York (the "Bankruptcy Court"). In connection with its filing for
bankruptcy protection, Petrie Retail failed to perform or make payments with
respect to certain of the Assumed Obligations, including, but not limited to,
Assumed Obligations relating to store leases for which Petrie Retail or an
affiliate thereof had assumed liability, state and federal taxes, employment
agreements, insurance premiums and certain other claims and contractual
obligations. Accordingly, the Liquidating Trust has been and may continue to be
required to make payments in respect of certain of the Assumed Obligations.

         On December 23, 1997, the Liquidating Trust filed over 110 claims in
the Bankruptcy Court against Petrie Retail and certain of its affiliates with
respect to an aggregate of approximately $14 million in payments which had then
been made by the Liquidating Trust as a result of the failure by Petrie Retail
or an affiliate thereof to perform or pay certain of the Assumed Obligations.
The Liquidating Trust subsequently amended these claims such that it asserted
fixed claims representing a total of approximately $16.9 million against Petrie
Retail's estate. The Liquidating Trust also filed approximately 600 additional
claims in the Bankruptcy Court against Petrie Retail and certain of its
affiliates with respect to payments which the Liquidating Trust may in the
future be required to make as a result of the failure by Petrie Retail or its
affiliates to perform or pay Assumed Obligations.

         On December 8, 1998, the Bankruptcy Court confirmed a plan of
reorganization for Petrie Retail (the "Petrie Retail Plan"), which modified the
plan of reorganization filed by Petrie Retail and Warburg Pincus Ventures, L.P.
("Warburg") with the Bankruptcy Court on August 6, 1998, as amended. Under the
confirmed Petrie Retail Plan, Petrie Retail sold substantially all of its
remaining operating assets to Urban Acquisition Corp., an affiliate of Urban
Brands, Inc., a retailer that operates under the Ashley Stewart trade name, for
$52.25 million, and retained 13 of its store leases, for which Warburg was
required to contribute $12 million to the bankruptcy estate, assume $3.1
million of Petrie Retail's executive severance obligations and waive
approximately $3.8 million in fees and expenses allegedly owed to it under
Petrie Retail's debtor-in-possession financing arrangement.

         On April 12, 2000, the Bankruptcy Court approved a stipulation of
settlement between the distribution company (the "Distribution Company")
designated by the Petrie Retail Plan and the Liquidating Trust, under which the
Liquidating Trust and the Distribution Company settled their disputes regarding
the claims that the Liquidating Trust filed against Petrie Retail. Pursuant to
the stipulation of settlement, (i) the Liquidating Trust was allowed a single
unsecured claim against Petrie Retail in the amount of approximately $14.4
million, subject to increase upon resolution of the Distribution Company's
objections to certain landlord claims against Petrie Retail, (ii) the
Distribution Company agreed to release to the Liquidating Trust the
approximately $5.5 million held in a collateral account by June 30, 2000
(provided that the Distribution Company did not pay $10 million or more to the
United Auto Workers District 65 Security Plan Pension Fund prior to that date),
and (iii) the Distribution Company and the Liquidating Trust exchanged mutual
releases. On June 28, 2000, the approximately $5.5 million held in the
collateral account was released and transferred to the Liquidating Trust in
accordance with the settlement. On December 15, 2000, the Bankruptcy Court
entered an order allowing the Liquidating Trust an unsecured claim against the
Distribution Company in the amount of $15.3 million. On December 21, 2000, the
Liquidating Trust received $765,000 as partial payment of the Liquidating
Trust's claim against the Distribution Company. On December 18, 2001, the
Liquidating Trust received $1,530,000 as partial payment of the Liquidating
Trust's claim against the Distribution Company. On or about July 1, 2003, the
Liquidating Trust received an additional $1,836,000 as partial payment of the
Liquidating Trust's claim against the Distribution Company. As of May 12, 2004,
the Liquidating Trust's remaining claim against the Distribution Company was
$11,169,000. There can be no assurance as to the timing of the payment, if any,
of the remainder of the Liquidating Trust's claim against the Distribution
Company or the amount of any further payments that the Distribution Company
will make to creditors asserting unsecured claims. Accordingly, no amounts have
been accrued as receivables for potential reimbursement or recoveries from the
reorganized Petrie Retail entity. On or about December 30, 2003, the
Liquidating Trust received a refund in respect of previous tax years of
approximately $949,000 to which the Liquidating Trust is entitled pursuant to a
settlement agreement between the Liquidating Trust and the Petrie Retail
bankruptcy estate.

         On April 10, 1998, PS Stores, the parent of Petrie Retail, filed a
voluntary petition for reorganization relief under Chapter 11 of the United
States Bankruptcy Code with the Bankruptcy Court. After such filing, the
Liquidating Trust filed claims in the Bankruptcy Court against PS Stores
substantially similar to those filed against Petrie Retail. On December 8,
1998, the Bankruptcy Court confirmed PS Stores' proposed plan of
reorganization, and in August 1999, pursuant to a settlement approved by the
Bankruptcy Court, the Liquidating Trust received a payment in the amount of
approximately $200,000 from PS Stores' bankruptcy estate.

         Store Leases. As described above, in December 1998, Petrie Retail
disposed of substantially all its remaining operations and store leases as part
of the Petrie Retail Plan. Of the roughly 1600 stores that Petrie Retail
operated prior to filing its bankruptcy petition in October 1995, (i) 722
leases were rejected, (ii) 615 leases were assigned to third party retailers,
including (A) 410 leases which were part of Petrie Retail's former G&G Shops
Inc. division and were included in the sale of such division to an investor
group led by Pegasus Partners, L.P. and certain executives of such division,
(B) 85 leases which were sold to Urban Acquisition Corp. as part of the Petrie
Retail Plan and (C) 120 leases which were not part of Petrie Retail's former
G&G Shops Inc. division and which were sold to third party retailers other than
Urban Acquisition Corp., (iii) 13 leases were retained by the reorganized
Petrie Retail entity for stores which are currently managed by Urban
Acquisition Corp. and which Urban Acquisition Corp. has the right to purchase
at a later date and (iv) approximately 250 leases expired or were terminated by
mutual landlord and tenant consent.

         After taking into account settlements and releases obtained from
landlords, the Liquidating Trust, as successor to Petrie, remains the guarantor
of 140 of the retail leases. The Liquidating Trust's theoretical exposure
relating to these leases, without giving effect to any present value discount
and assuming the landlord in each case is unable to mitigate its damages, would
be approximately $27 million (including potential exposure related to the
exercise of lease renewal options described below). Such exposure includes (i)
approximately $24 million in potential liability related to 61 of the rejected
store leases described above, which amount is included in the Liquidating
Trust's accrued expenses and other liabilities at March 31, 2004, and (ii)
approximately $3 million in potential liability related to 20 of the store
leases which were either assigned to third party retailers or are still held by
the successor of Petrie Retail and 59 of the leases which have expired or were
terminated by mutual landlord and tenant consent described above. The exposure
related to assigned leases or leases still held by the successor to Petrie
Retail includes potential liability related to lease extension options that may
be exercised following the assignment of leases to third party retailers.

         The Liquidating Trust's lease exposure calculations reflect the
estimated sum of all base rent and additional rent (such as taxes and common
area charges) due under a lease through the end of the lease term, but do not
reflect potential penalties, interest and other charges to which a landlord may
be entitled. Such additional charges (which may in part be unenforceable) are
not expected to materially increase the Liquidating Trust's lease guarantee
liability.

         A significant number of leases discussed above under which a landlord
might claim that the Liquidating Trust, as successor to Petrie, has liability
as a lease guarantor either expressly contain mitigation provisions or relate
to property in states that imply such provisions as a matter of law. Mitigation
generally requires, among other things, that a landlord of a closed store seek
to reduce its damages, including by attempting to locate a new tenant.

         Employment Agreements. As previously disclosed, on October 23, 1995,
Petrie Retail notified three former executives of Petrie that, as a result of
Petrie Retail's bankruptcy filing, Petrie Retail would no longer honor its
obligations under the employment agreements each executive had entered into
with Petrie which had been assumed by Petrie Retail in connection with the sale
of the retail operations. On April 25, 1996, the Liquidating Trust entered into
settlement agreements with two of the former executives and on January 27, 1997
entered into a settlement agreement with the estate of the third executive.
Pursuant to such settlement agreements, the Liquidating Trust agreed to pay
each substantially all the amounts due under respective agreements with Petrie.
The two former executives have since died and, as a result, the Liquidating
Trust's obligations under the settlement agreements with such executives have
been terminated. The total cost of these settlements to the Liquidating Trust
was approximately $3.2 million.

         Insurance Premium Adjustment. In April 2002, the Liquidating Trust
received a bill from Zurich N.A. ("Zurich"), an insurer of Petrie, for $551,338
in respect of retrospective premium adjustments purportedly owed by Petrie
pursuant to general liability, automobile and workers' compensation insurance
agreements between Zurich and Petrie. The amount claimed by Zurich relates to
policy terms 1988/1989 through and including 1994/1995, and was based on the
value of claims made as of December 31, 2001. Such amount was paid by the
Liquidating Trust on September 26, 2002.

         The Liquidating Trust received a bill dated February 10, 2004 from
Zurich for $84,343 in respect of retrospective premium adjustments purportedly
owed by Petrie pursuant to general liability, automobile and workers'
compensation insurance agreements between Zurich and Petrie. The amount claimed
by Zurich relates to policy terms 1988/1989 through and including 1994/1995,
and was based on the value of claims made as of December 31, 2003. This amount
was included in accrued expenses and other liabilities at December 31, 2003 and
March 31, 2004. Such amount was paid by the Liquidating Trust on May 12, 2004.

         The Liquidating Trust believes, based on the most recently available
information, that appropriate accruals have been established in the
accompanying financial statements to provide for any losses that may be
incurred with respect to the aforementioned contingencies.

<PAGE>

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

         The following discussion should be read in conjunction with the
Financial Statements and the Notes thereto provided herein.

         As previously disclosed, Petrie sold its retail operations to PS
Stores on December 9, 1994, and on January 24, 1995 (the date on which Petrie's
shareholders approved the Plan of Liquidation), Petrie commenced its
liquidation. As a result, effective January 28, 1995, Petrie changed its basis
of accounting from a going-concern basis to a liquidation basis. During the
three months ended March 31, 2004 and 2003, the Liquidating Trust's activities
were limited to continuing Petrie's liquidation in furtherance of the Plan of
Liquidation. Beginning with the period ended December 31, 1996, the Liquidating
Trust adopted the calendar year as its fiscal year.

Critical Accounting Policies

         The Liquidating Trust's financial statements are prepared in
accordance with accounting principles generally accepted in the United States,
and require management to make estimates and assumptions. The Liquidating Trust
believes that, of its significant accounting policies, the policies described
under Note 5 to the Liquidating Trust's financial statements with respect to
estimating the Liquidating Trust's lease exposure may involve a higher degree
of judgment and complexity.

Results of Operations

         The Liquidating Trust's net loss for the three months ended March 31,
2004 was $249,000, as compared to net income of $1,000 for the three months
ended March 31, 2003.

         For the three months ended March 31, 2004, the Liquidating Trust
incurred corporate overhead expense of $362,000. For the three months ended
March 31, 2003, the Liquidating Trust incurred corporate overhead expense of
$245,000 Corporate overhead generally consists of costs and expenses related to
the liquidation and dissolution of Petrie including, but not limited to, costs
and expenses that the Liquidating Trust has incurred as a result of Petrie
Retail's failure to perform its obligations in connection with its bankruptcy
filing, legal fees, real estate advisory fees, insurance, salaries for the
Liquidating Trust's two part-time employees, trustee fees, accounting fees,
transfer agent fees and printing and related expenses. The increase in
corporate overhead for the three months ended March 31, 2004 compared to the
three months ended March 31, 2003 was due to higher insurance costs.

         During the three months ended March 31, 2004, the Liquidating Trust
earned investment income of $113,000, as compared to $246,000 earned during the
three months ended March 31, 2003. The decrease in investment income for the
three months ended March 31, 2004 was due to lower prevailing interest rates
and fewer assets available for investment.

Liquidity and Capital Resources

General

         Pursuant to an agreement dated as of December 24, 2003, the
Liquidating Trust and Toys "R" Us agreed to terminate the Liquidating Trust's
obligations under a letter agreement dated as of January 24, 1995 to provide
notice to Toys "R" Us (and an opportunity for Toys "R" Us to object) prior to
making any liquidating distributions. Accordingly, the Liquidating Trust is no
longer obligated to provide notice to Toys "R" Us prior to making
distributions.

         As of May 12, 2004, the Liquidating Trust had approximately $44
million in cash, cash equivalents and investments in U.S. Treasury obligations.
The Liquidating Trust believes that it has sufficient liquid funds available to
satisfy the foreseeable liabilities of the Liquidating Trust (including,
without limitation, costs and expenses related to the administration of the
Liquidating Trust, such as legal fees, real estate advisory fees, insurance,
salaries for the Liquidating Trust's two part-time employees, trustee fees,
accounting fees, transfer agent fees and printing and related expenses).

Contingent Liabilities

         As more fully described in Item 1 of Part I, the Liquidating Trust, as
successor to Petrie, has accrued for certain contingent liabilities with
respect to existing or potential claims, lawsuits and other proceedings, which
primarily relate to guarantees of certain retail store leases, expiring at
various times through 2011 for which Petrie Retail or an affiliate thereof
assumed liability, and certain other liabilities that were assumed by Petrie
Retail (but as to which Petrie's liability has not been released) in connection
with the Sale to the extent that Petrie Retail or its successor fails to
perform. At March 31, 2004, the Liquidating Trust, as successor to Petrie, had
accrued approximately $25 million for contingent liabilities. As the scope of
these liabilities becomes further refined, there may be changes in the
estimates of future costs, which could have a material effect on the
Liquidating Trust's financial condition, liquidity and future ability to make
liquidating distributions. See Notes to Financial Statements.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

         Except for historical matters, the matters discussed in this Quarterly
Report on Form 10-Q are forward-looking statements that involve risks and
uncertainties. Forward-looking statements include, but are not limited to,
statements relating to the Liquidating Trust's contingent liabilities contained
above in "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and Notes to Financial Statements.

         The Liquidating Trust wishes to caution readers that in addition to
factors that may be described elsewhere in this Quarterly Report on Form 10-Q,
the following important factors, among others, could cause the Liquidating
Trust's assets and liabilities to differ materially from those expressed in any
forward-looking statements made by, or on behalf of, the Liquidating Trust, and
could materially affect the Liquidating Trust's financial condition, liquidity
and future ability to make liquidating distributions:

         (1)  A decision by Petrie Retail's successor to close additional
              stores for which the Liquidating Trust, as successor to Petrie,
              has liability as a guarantor;

         (2)  Other actions by Petrie Retail's successor which cause the
              default of obligations assumed by Petrie Retail in connection
              with the Sale for which the Liquidating Trust, as successor to
              Petrie, may be deemed to have liability;

         (3)  A decision by a court that the Liquidating Trust, as successor to
              Petrie, has liability as a guarantor of certain leases
              notwithstanding Petrie's receipt from the landlords thereof of
              releases of guarantees with respect to such leases;

         (4)  An adverse material change in general economic conditions and the
              interest rate environment;

         (5)  The effects of, and changes in, laws and regulations and other
              activities of federal and local governments, agencies and similar
              organizations; and

         (6)  The costs and other effects of other legal and administrative
              cases and proceedings, settlements and claims relating to the
              Liquidating Trust's contingent liabilities.
<PAGE>


Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

         The Liquidating Trust invests its available cash in short-term United
States Treasury Obligations. Although the rate of interest paid on short-term
United States Treasury Obligations may fluctuate over time based on changes in
the general level of U.S. interest rates, each of such investments is made at a
fixed interest rate over the duration of the investment and each has a maturity
of less than 365 days. In addition, the Liquidating Trust Agreement prohibits
the Liquidating Trust from making certain investments with a maturity of
greater than one year and certain other investments that could expose the
Liquidating Trust to market risk. The Liquidating Trust believes that its
exposure to market risk fluctuations for its investments is not material as of
March 31, 2004.

Item 4.  Controls and Procedures.

         (a)  Disclosure Controls and Procedures. The Liquidating Trust's
              management, with the participation of the Liquidating Trust's
              Chief Executive Officer and Chief Financial Officer, has
              evaluated the effectiveness of the Liquidating Trust's disclosure
              controls and procedures (as such term is defined in Rules
              13a-15(e) and 15d-15(e) under the Securities Exchange Act of
              1934, as amended (the "Exchange Act")) as of the end of the
              period covered by this report. Based on such evaluation, the
              Liquidating Trust's Chief Executive Officer and Chief Financial
              Officer have concluded that, as of the end of such period, the
              Liquidating Trust's disclosure controls and procedures are
              effective.

         (b)  Internal Control Over Financial Reporting. There have not been
              any changes in the Liquidating Trust's internal control over
              financial reporting (as such term is defined in Rules 13a-15(f)
              and 15d-15(f) under the Exchange Act) during the fiscal quarter
              to which this report relates that have materially affected, or
              are reasonably likely to materially affect, the Liquidating
              Trust's internal control over financial reporting.

<PAGE>


                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

         See the discussion contained in the Notes to Financial Statements in
Part I, Item 1 of this Quarterly Report on Form 10-Q.

Item 6.  Exhibits and Reports on Form 8-K.

         (a)  List of Exhibits

              Exhibit 31.1      Certification of Chief Executive
                                Officer pursuant to Rule 13a-14 of the
                                Securities Exchange Act of 1934, as adopted
                                pursuant to Section 302 of the
                                Sarbanes-Oxley Act of 2002.

              Exhibit 31.2      Certification of Chief Financial
                                Officer pursuant to Rule 13a-14 of the
                                Securities Exchange Act of 1934, as adopted
                                pursuant to Section 302 of the
                                Sarbanes-Oxley Act of 2002.

              Exhibit 32.1      Certification of Chief Executive Officer and
                                Chief Financial Officer pursuant to 18 U.S.C.
                                Section 1350, as adopted pursuant to Section
                                906 of the Sarbanes-Oxley Act of 2002.

         (b)  Reports on Form 8-K

              Current Report on Form 8-K, dated as of January 9, 2004,
              reporting the distribution of $20,940,095 in cash made by the
              Liquidating Trust to unit holders on January 30, 2004.


<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.

                                            PETRIE STORES LIQUIDATING TRUST


Dated:  May 14, 2004                        By /s/ Stephanie R. Joseph
                                               --------------------------------
                                            Stephanie R. Joseph
                                            Manager and Chief Executive Officer


Dated:  May 14, 2004                        By /s/ H. Bartlett Brown
                                               --------------------------------
                                            H. Bartlett Brown
                                            Assistant Manager and Chief
                                              Financial Officer