UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q


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

For  the  quarterly  period  ended  December 30, 2000
OR
[     ] TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15  (d) OF THE
        SECURITIES  EXCHANGE  ACT  OF  1934

For  the  transition  period  from  ____________  to  ____________

Commission  File  number  333-376-17

                                DELTA MILLS, INC.
                                -----------------
             (Exact name of registrant as specified in its charter)

                DELAWARE                               13-2677657
    --------------------------------               --------------------
    (State or other jurisdiction of                 (I.R.S.  Employer
    Incorporation  or  organization)               Identification  No.)


100  Augusta  Street
Greenville,  South  Carolina                             29601
----------------------------------------               ----------
(Address of principal executive offices)               (Zip Code)

                                  864\255-4100
                                  ------------
              (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  the  number  of  shares outstanding of each of the issuer's classes of
common  stock, as of the latest practicable date. Common Stock, $.01 Par Value--
100  shares  as  of  February  2,  2001.
2
THE  REGISTRANT  MEETS  THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a)
AND  H(1)(b)  OF  FORM  10-Q  AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE  FORMAT.


                                        1
<PAGE>
<TABLE>
<CAPTION>
DELTA  MILLS,  INC.
                                      INDEX
PART  I.  FINANCIAL  INFORMATION
<S>                                                                     <C>
Item 1.  Financial Statements (Unaudited)

  Condensed consolidated balance sheets--
  December 30, 2000 and July 1, 2000                                     3-4

  Condensed consolidated statements of operations--
  Three months and six months ended December 30, 2000
  and January 1, 2000                                                      5

  Condensed consolidated statements of cash
  flows-Six months ended December 30, 2000
  and January 1, 2000                                                      6

  Notes to condensed consolidated financial
  statements-December 30, 2000                                           7-8

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations                  9-10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk       10

Part II.  OTHER INFORMATION                                               11

SIGNATURES                                                                12
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
PART  I.  FINANCIAL  INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS

DELTA  MILLS,  INC.

CONDENSED CONSOLIDATED BALANCE SHEETS                               December 30,  July 1,
                                                                        2000       2000
                                                                    ------------  -------
                                                                     (Unaudited)
                                                                        (In  thousands)
ASSETS

CURRENT  ASSETS
<S>                                                                    <C>       <C>
  Cash and cash equivalents                                            $    279  $ 18,287
  Accounts receivable:
    Factor and other                                                     57,870    71,670
    Less allowances for doubtful accounts and returns                       124       173
                                                                       --------  --------
                                                                         57,746    71,497

Inventories:
  Finished goods                                                         10,365     4,916
  Work in process                                                        26,450    31,324
  Raw materials and supplies                                              7,462     7,679
                                                                       --------  --------
                                                                         44,277    43,919

Deferred income taxes                                                     1,083     1,208
Other assets                                                                430       467
                                                                       --------  --------
                                    TOTAL CURRENT ASSETS                103,815   135,378

PROPERTY, PLANT AND EQUIPMENT
  Cost                                                                  163,058   161,670
  Accumulated depreciation                                               75,878    70,322
                                                                       --------  --------
                                                                         87,180    91,348

DEFERRED LOAN COSTS AND OTHER ASSETS                                      2,275     2,886
                                                                       --------  --------
                                           TOTAL ASSETS                $193,270  $229,612
                                                                       ========  ========
</TABLE>

See  notes  to  consolidated  financial  statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
DELTA  MILLS,  INC

CONDENSED  CONSOLIDATED  BALANCE  SHEETS-Continued

                                                            December 30,  July 1,
                                                                2000       2000
                                                            ------------  --------
                                                            (Unaudited)
                                                                (In  thousands)
LIABILITIES
<S>                                                            <C>       <C>
CURRENT LIABILITIES
  Trade accounts payable                                       $ 10,824  $ 14,514
  Payable to affiliates                                             921     1,318
  Accrued employee compensation                                   1,131     2,858
  Accrued and sundry liabilities                                 19,014    21,530
                                                            ------------  --------
                          TOTAL CURRENT LIABILITIES              31,890    40,220

LONG-TERM DEBT                                                   83,815   115,078
DEFERRED INCOME TAXES                                            14,137    12,314
DEFERRED COMPENSATION                                             6,375     5,813


SHAREHOLDERS' EQUITY
  Common Stock, par value $.01--authorized
    3,000 shares, issued and outstanding 100 shares                   0         0
  Additional paid-in capital                                     51,792    51,792
  Retained earnings                                               5,261     4,395
                                                            ------------  --------
TOTAL SHAREHOLDERS' EQUITY                                       57,053    56,187
                                                            ------------  --------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                     $193,270  $229,612
                                                            ============  ========
</TABLE>

See  notes  to  consolidated  financial  statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                                        Three Months Ended       Six Months Ended
                                                     ------------------------  ------------------------
                                                     December 30,  January 1,  December 30,  January 1,
                                                         2000        2000         2000        2000
                                                     ------------  ----------  ------------  ----------
                                                          (In  thousands)            (In  thousands)

<S>                                                  <C>           <C>         <C>           <C>
Net sales to non-affiliated parties                  $    59,697   $  58,144   $   122,896   $  116,152
Net sales to affiliated parties                                0       8,297             0       15,607
                                                     ------------  ----------  ------------  -----------
Net sales                                                 59,697      66,441       122,896      131,759
Cost of goods sold                                        53,780      60,233       107,705      119,734
                                                     ------------  ----------  ------------  -----------
Gross profit on sales                                      5,917       6,208        15,191       12,025
Selling, general and administrative expenses               3,593       3,661         6,934        7,070
Other income                                                   4          58           377           92
                                                     ------------  ----------  ------------  -----------
                     OPERATING PROFIT                      2,328       2,605         8,634        5,047

Interest (expense) income:
  Interest (expense)                                      (2,687)     (4,288)       (5,636)      (8,601)
  Interest income                                            146         304           408          448
                                                     ------------  ----------  ------------  -----------
                                                          (2,541)     (3,984)       (5,228)      (8,153)



INCOME(LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEM                                      (213)     (1,379)        3,406       (3,106)
Income tax expense (benefit)                                 (64)       (626)        1,221       (1,303)
                                                     ------------  ----------  ------------  -----------



INCOME (LOSS) BEFORE EXTRAORDINARY ITEM                     (149)       (753)        2,185       (1,803)

Extraordinary gain on early retirement of debt
  less applicable income taxes                               946           0         1,585            0
                                                     ------------  ----------  ------------  -----------

NET INCOME (LOSS)                                    $       797    $   (753)  $     3,770   $   (1,803)
                                                     ============  ==========  ============  ===========

</TABLE>

See  notes  to  consolidated  financial  statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
DELTA  MILLS,  INC.

CONDENSED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  (UNAUDITED)

                                                               Six Months Ended
                                                          ---------------------------
                                                           December 30,   January 1,
                                                               2000          2000
                                                          -------------  ------------
                                                                (In Thousands)
OPERATING ACTIVITIES
<S>                                                           <C>        <C>
Net Income (loss)                                             $  3,770   $(1,803)

Adjustments to reconcile net income to net cash
 provided by operating activities:
    Depreciation                                                 5,556     6,950
    Amortization                                                   212       346
    Write off of loan origination costs - line of credit           783         0
    Gain on early retirement of debt                            (3,242)        0
    Provision for losses on accounts receivable                    (49)        0
    Provision for deferred income taxes                          1,948         0
    Losses (gains) on disposition of property and equipment       (341)        0
    Deferred compensation                                          562         0
    Changes in operating assets and liabilities                  5,604    19,237
                                                              ---------  --------

NET CASH PROVIDED BY OPERATING ACTIVITIES                       14,803    24,730

INVESTING ACTIVITIES
  Property, plant and equipment:
  Purchases                                                     (1,956)   (2,308)
  Proceeds of dispositions of assets                               450        12
  Other                                                           (384)        0
                                                              ---------  --------
NET CASH (USED) BY
                INVESTING ACTIVITIES                            (1,890)   (2,296)

FINANCING ACTIVITIES
  Proceeds from revolving lines of credit                     $  3,003         0
  Repayments on revolving lines of credit                       (3,003)        0
  Repurchase and retirement of long term debt                  (28,021)        0
  Dividends paid                                                (2,900)        0
                                                              ---------  --------
NET CASH PROVIDED (USED)
 BY FINANCING ACTIVITIES
                                                               (30,921)        0
                                                              ---------  --------

INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                             (18,008)   22,434

Cash and cash equivalents at beginning of year                  18,287     9,903
                                                              ---------  --------

CASH AND CASH EQUIVALENTS AT END OF QUARTER                   $    279   $32,337
                                                              =========  ========
</TABLE>

See  notes  to  consolidated  financial  statements.


                                        6
<PAGE>
DELTA  MILLS,  INC.
NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS  (UNAUDITED)

December  30,  2000

NOTE  A--BASIS  OF  PRESENTATION

The  accompanying unaudited consolidated condensed financial statements of Delta
Mills,  Inc.  ("the  Company")  have  been prepared in accordance with generally
accepted  accounting  principles  for interim financial information and with the
instructions  to  Form 10-Q and Article 10 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  management,  all  adjustments  consisting  of only normal recurring
accruals  considered  necessary  for  a  fair  presentation  have been included.
Operating results for the six months ended December 30, 2000 are not necessarily
indicative  of  the  results  that  may be expected for the year ending June 30,
2001.  For  further  information, refer to the consolidated financial statements
and  footnotes  thereto included in the Company's annual report on Form 10-K for
the  year  ended  July  1,  2000.

NOTE  B--SUMMARIZED  FINANCIAL  INFORMATION  OF  SUBSIDIARY

Delta  Mills  Marketing,  Inc.  (the  "Guarantor")  does not comprise a material
portion  of the Company's assets or operations.  The Guarantor is a wholly-owned
subsidiary  of  the  Company  and  has fully and unconditionally guaranteed (the
"Guarantee")  the  Company's payment of principal, premium, if any, interest and
certain liquidated damages, if any, on the Company's senior notes (the "Notes").
The  Guarantor's  liability  under  the Guarantee is limited to such amount, the
payment  of  which  would  not  have  left  the  Guarantor  insolvent  or  with
unreasonably  small  capital  at  the time its Guarantee was entered into, after
giving  effect  to  the incurrence of existing indebtedness immediately prior to
such  time.

The Guarantor is the sole subsidiary of the Company.  All future subsidiaries of
the  Company  will  provide  guarantees  identical  to  the one described in the
preceding paragraph unless such future subsidiaries are Receivables Subsidiaries
(as defined in the indenture relating to the Notes).  Such additional guarantees
will  be  joint  and  several  with  the  Guarantee  of  the  Guarantor.

The Company has not presented separate financial statements or other disclosures
concerning  the  Guarantor  because  Company management has determined that such
information  is  not  material  to  investors.

Summarized financial information for the Guarantor is as follows (in thousands):

<TABLE>
<CAPTION>
                                                     December 30,    July 1,
                                                         2000         2000
                                                    --------------  ---------
<S>                                                 <C>             <C>
Current assets                                      $         234   $    234
Noncurrent assets                                             101        117
Current liabilities                                         1,431      1,479
Noncurrent liabilities                                        878        785
Stockholder's (deficit)                                    (1,975)    (1,913)

Summarized results of operations for the Guarantor are as follows
(in thousands):

                                                       Six Months Ended
                                                    -------------------------
                                                      December 30,  January 1,
                                                         2000          2000
                                                    --------------  ---------

Net sales - intercompany commissions                $       2,028   $  1,903
Costs and expenses                                          2,090      2,020
Income from continuing operations                             (62)      (117)
Net profit (loss)                                             (62)       (66)
</TABLE>


                                        7
<PAGE>
NOTE  C-LONG-TERM  DEBT,  CREDIT  ARRANGEMENTS,  AND  NOTES  PAYABLE

The Company has a secured three-year $50 million revolving bank credit facility.
At each of July 1, 2000 and December 30, 2000, no amounts were outstanding under
this  facility.  The  credit facility contains restrictive covenants that, among
other  things,  require that the Delta Mills' Maximum Leverage Ratio, as defined
therein,  not exceed specified amounts.  The agreement also restricts additional
indebtedness,  dividends,  and  capital  expenditures.  The payment of dividends
with respect to the Company's stock is permitted if there is no event of default
and  there  is  at  least  $1  of  availability  under  the  facility.

During the quarter ended December 30, 2000, the Company acquired for $13,750,876
a  portion  of  its 9 5/8% Senior Notes.  The aggregate principal face amount of
the  acquired  Senior  Notes  was  $15,610,000.  The  Company  recognized  an
extraordinary  gain  on the early retirement of debt of $946,000 net of taxes of
$522,000.

                                        8
<PAGE>
Item  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
             RESULTS  OF  OPERATIONS

The  following  discussion  contains  certain "forward-looking statements".  All
statements,  other  than statements of historical fact, that address activities,
events or developments that the Company expects or anticipates will or may occur
in  the  future, including such matters as future revenues, future cost savings,
future  capital  expenditures,  business strategy, competitive strengths, goals,
plans,  references  to  future  success  and  other  such  information  are
forward-looking  statements.  The  words  "estimate",  "project",  "anticipate",
"expect",  "intend",  "believe" and similar expressions are intended to identify
forward-looking  statements.

The  forward-looking  statements  in  this  Quarterly  Report  are  based on the
Company's  expectations  and  are  subject  to  a  number  of business risks and
uncertainties, any of which could cause actual results to differ materially from
those  set  forth  in or implied by the forward-looking statements.  These risks
and  uncertainties  include,  among  others,  changes  in  the retail demand for
apparel  products,  the  cost  of  raw  materials, competitive conditions in the
apparel  and  textile  industries,  the  relative  strength of the United States
dollar  as  against other currencies, changes in United States trade regulations
and  the  discovery of unknown conditions (such as with respect to environmental
matters,  and similar items).  The Company does not undertake publicly to update
or  revise  the  forward-looking  statements  even  if it becomes clear that any
projected  results  will  not  be  realized

The  Company sells a broad range of finished apparel fabric primarily to branded
apparel  manufactures  and  resellers.

Net sales to non-affiliated parties for the three months ended December 30, 2000
were  $59.7  million  as  compared  to $58.1 million in the first quarter of the
prior  fiscal year, an increase of 2.7%.  The increase was due principally to an
increase  in  unit  sales  of  cotton  products  as  a result of improved market
conditions.  Net  sales  to  affiliated  parties  were  eliminated  in the first
quarter  of  fiscal  year  2001  due to the sale of the Rainsford Plant to Delta
Apparel,  Inc.  in  the  fourth quarter of fiscal year 2000.  For the six months
ended December 30, 2000, net sales to non-affiliated parties were $122.9 million
as  compared  to  $116.2  million  for  the  six  months  ended January 1, 2000.

Gross  profit  was $5.9 million and 9.9% of sales in the first quarter of fiscal
year  2001.  This  compares to gross profit of $6.2 million and 9.3% of sales in
the  prior  year  quarter.  For  the  six  months ended December 30, 2000, gross
profit  was  $15.2 million or 12.4% of net sales as compared to $12.0 million or
9.1%  of  net sales for the same six month period of the prior fiscal year.  The
increase in gross profit margin was the result of increased capacity utilization
in  the  first  quarter and increased sales and the reduction in cost associated
with  downsizing  of  the  synthetic product line during the first six months of
fiscal  year  2000.  The  increase  in  gross  profit  was  somewhat  offset  by
unabsorbed  manufacturing  cost associated with curtailment during the Christmas
holiday  season  in  order  to  adjust production and inventory in line with the
Company's  customer's deferments that occurred late in the second quarter.  To a
lesser  extent,  cost  increases in power, fuel and some manufacturing materials
contributed  to  the  decline  in  gross  profit  during  the  second  quarter.

Selling,  general and administrative expense (SG&A) was $3.6 million and 6.0% of
net  sales  for  the first quarter of fiscal year 2001 compared to SG&A of  $3.7
million  and 5.5% of net sales for the prior year quarter.  Selling, general and
administrative expense (SG&A) was $6.9 million and 5.6% of net sales for the six
months  ended December 30, 2000 as compared to SG&A of  $7.1 million and 5.4% of
net  sales  for  the  prior  year  six  months  ended  January  1,  2000.

The  loss before income taxes and extraordinary item was $213,000 for the second
quarter  of  fiscal  2001  compared to a loss of  $1.4 million in the prior year
quarter.  The  improvement  of  $1.2  million  was  the result of a reduction of
interest  expense due to lower debt levels associated with the extinguishment of
a  portion  of  the  Company's senior note debt.  Income before income taxes and
extraordinary  items was $3.4 million for the six months ended December 30, 2000
as  compared to a loss of $3.1 million for the six months ended January 1, 2000.


                                        9
<PAGE>
Item  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
             RESULTS  OF  OPERATIONS  -  CONTINUED


Extraordinary  gain,  net of taxes of $522,000, was $946,000 in the current year
quarter.  The  extraordinary  gain  occurred  when the Company's purchased $15.6
million  face amount of its 9 5/8% Senior Notes for $13.8 million.  There was no
extraordinary  gain in the prior year quarter. For the six months ended December
30,  2000,  the  extraordinary  gain,  net of taxes of $874,000, was $1,585,000.
There  was  no  extraordinary  gain  in  the  prior  year  period.

Net  income  was  $797,000 for the quarter ended December 30, 2000 compared to a
net loss of  $753,000 in the prior year quarter.   Net income for the six months
ended  December  30, 2000 was $3.8 million as compared to a loss of $1.8 million
for  the  six  months  ended  January  1,  2000.

The  Company's  order  backlog  at  December  30,  2000 was $55.8 million, a 16%
decrease  over  the backlog of $66.8 million at January 1, 2000. The decrease in
order  backlog  was  the  result  of  the  Company's  customer's deferments that
occurred  late in the second quarter.  The backlog improved as compared to prior
year  levels  immediately  following  the  end  of  the  second  quarter.

The  Company  believes  that  cash  flow  generated  by  its  operations will be
sufficient  to  service  its  debt,  to  satisfy  its day to day working capital
requirements,  to  pay  dividends  and to fund its planned capital expenditures.

In  June  1998, The Financial Accounting Standards Board (FASB) issued Statement
of  Financial  Accounting  Standards  (SFAS) No. 133, "Accounting for Derivative
Instruments  and Hedging Activities".  This standard, as subsequently amended by
SFAS  Nos.  137  and  138, requires the recognition of all derivatives as either
assets or liabilities in the statement of financial position and the measurement
of  those  instruments  at fair value.  On July 2, 2000, the Company adopted the
new  standard.  The  Company's  management has determined that its cotton buying
contracts  meet the criteria for exclusion under the normal purchases and normal
sales  exemption  and are not considered derivatives; therefore, the Company had
no  financial  statement  impact  from  the  adoption  of  the  standard.

Item  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

As  a part of the Company's business of converting fiber to finished fabric, the
Company  makes raw cotton purchase commitments and then fixes prices with cotton
merchants who buy from producers and sell to textile manufacturers.  Daily price
fluctuations  are  minimal, yet long-term trends in price movement can result in
unfavorable pricing of cotton. Before fixing prices, the Company looks at supply
and  demand  fundamentals,  recent  price  trends  and other factors that affect
cotton prices.  The Company also reviews the backlog of orders from customers as
well  as the level of fixed price cotton commitments in the industry in general.
As  of  December  30, 2000, a 10% decline in market price of the Company's fixed
price  contracts  would have had a negative impact of approximately $1.5 million
on  the  value  of  the  contracts.


                                       10
<PAGE>
PART  II.  OTHER  INFORMATION

Item  1.    Legal  Proceedings

On  January  13,  2000, Marion Mills, LLC, a supplier to the Company, brought an
action  against the Company in North Carolina Superior Court in McDowell County,
North  Carolina.  The  Company  removed  the  case  to  federal court in Western
District  of  North  Carolina,  Asheville Division, where a trial was held and a
jury  rendered  a  verdict in favor of the Company on January 19, 2001.  In that
action,  the  plaintiff  initially  sought  actual damages and consequential and
incidental damages in excess of $9.2 million, based on an alleged failure by the
Company  to pay in excess of $1.8 million of invoice amounts.  The consequential
and  incidental  damages  claim  was  based on the allegation that the Company's
failure  to pay caused Marion Mills, LLC to shut down its business.  Essentially
all  of  the  consequential and incidental damages claim was decided in favor of
the  Company by summary judgment in December 2000, and the remaining claims were
decided  in  favor  of  the  Company  by  jury verdict on January 19, 2001.  The
plaintiff  has  filed  a  motion for a new trial.  The Company believes that the
plaintiff's  motion for a new trial has no merit and is vigorously opposing that
motion.

Item  6.   Exhibits  and  Reports  on  Form  8-K
     None


                                       11
<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.



                                 Delta  Mills,  Inc.
                                 -------------------
                                 (Registrant)




Date      February  2,  2001     By:/s/  W.H.  Hardman,  Jr.
      ----------------------     ---------------------------
                                 W.H.  Hardman,  Jr.
                                 Chief  Financial  Officer


                                       12
<PAGE>