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  January  1,  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.)

  233  North  Main  Street
  Hammond  Square,  Suite  200
  Greenville,  South  Carolina                            29601
  ---------------------------------------               ---------
 (Address of principal executive offices)               (Zip Code)

                                  864\232-8301
                                  ------------
              (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  15,  2000.

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>
DELTA  MILLS,  INC.


                                      INDEX


PART  I.  FINANCIAL  INFORMATION

Item  1.  Financial  Statements  (Unaudited)

  Condensed  consolidated  balance  sheets--
  January  1,  2000  and  July  3,  1999                                  3-4

  Condensed  consolidated  statements  of  operations--
  Three months and six months ended January 1, 2000 and
  December 26, 1998                                                         5

  Condensed  consolidated  statements  of  cash
  flows-Six  months  ended  January  1,  2000
  and  December  26,  1998                                                  6

  Notes  to  condensed  consolidated  financial
  statements-January  1,  2000                                            7-9

Item  2.    Management's  Discussion  and  Analysis  of
            Financial Condition and Results of Operations               10-11

Item  3.    Quantitative and Qualitative Disclosures About Risk            12


Part  II.   OTHER  INFORMATION


Item  1.    Legal  Proceedings                                             12

Item  5.    Other  Information                                             12

Item  6.    Exhibits  and  Reports  on  Form  8-K                          12

SIGNATURES                                                                 13


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

ITEM  1.  FINANCIAL  STATEMENTS

DELTA  MILLS,  INC.

CONDENSED CONSOLIDATED BALANCE SHEETS                                    January 1,   July 3,
                                                                            2000       1999
                                                                       ------------  --------
                                                                        (Unaudited)
                                                                            (In thousands)
<S>                                                                    <C>           <C>
ASSETS

CURRENT ASSETS

  Cash and cash equivalents                                            $     32,337  $  9,903
  Accounts receivable:
    Factor and other                                                         53,561    69,881
    Affiliates                                                                3,232    12,994
                                                                       ------------  --------
                                                                             56,793    82,875
Less allowances for doubtful accounts and returns                               270       291
                                                                       ------------  --------
                                                                             56,523    82,584

Inventories:
  Finished goods                                                             10,782     9,122
  Work in process                                                            27,295    29,201
  Raw materials and supplies                                                  7,794     7,144
                                                                       ------------  --------
                                                                             45,871    45,467

Current assets of discontinued operations                                       642       780
Deferred income taxes                                                         2,527     2,482
                                                                       ------------  --------
                                    TOTAL CURRENT ASSETS                    137,900   141,216

PROPERTY, PLANT AND EQUIPMENT
  Cost                                                                      201,220   200,723
  Accumulated depreciation                                                   92,633    85,743
                                                                       ------------  --------
                                                                            108,587   114,980

                    DEFERRED LOAN COSTS AND OTHER ASSETS                      4,409     4,755
                                                                       ------------  --------
                                            TOTAL ASSETS               $    250,896  $260,951
                                                                       ============  ========
</TABLE>


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

CONDENSED  CONSOLIDATED  BALANCE  SHEETS-Continued

                                                                  January 1,   July 3,
                                                                     2000       1999
                                                                ------------  ---------
                                                                 (Unaudited)
                                                                      (In thousands)
<S>                                                             <C>           <C>
LIABILITIES

CURRENT LIABILITIES
  Trade accounts payable                                        $    11,428   $ 15,887
  Payable to affiliates                                               2,376        571
  Accrued employee compensation                                       1,539      4,014
  Accrued and sundry liabilities                                     14,815     18,381
  Accrued restructuring charges                                         670        750
                                                                ------------  ---------
                 TOTAL CURRENT LIABILITIES                           30,828     39,603

LONG-TERM DEBT                                                      150,000    150,000
DEFERRED INCOME TAXES                                                15,547     15,547
OTHER LIABILITIES AND DEFERRED CREDITS                                6,563      6,040


SHAREHOLDERS' EQUITY
  Common Stock, par value $.01--authorized                                0          0
    3,000 shares, issued and outstanding 100 shares
  Additional paid-in capital                                         51,792     51,792
  Retained earnings (deficit)                                        (3,834)    (2,031)
                                                                ------------  ---------
TOTAL SHAREHOLDERS' EQUITY                                           47,958     49,761
                                                                ------------  ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                      $   250,896   $260,951
                                                                ============  =========
</TABLE>


                                        4
<PAGE>
<TABLE>
<CAPTION>
DELTA  MILLS,  INC.

CONDENSED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS  (UNAUDITED)


                                                   Three Months Ended             Six Months Ended
                                              ----------------------------  ----------------------------
                                               January 1,    December 26,    January 1,    December 26,
                                                  2000           1998           2000           1998
                                              ------------  --------------  ------------  --------------
                                                    (In Thousands)                 (In thousands)
<S>                                           <C>           <C>             <C>           <C>
Net sales to non-affiliated parties           $    58,144   $      79,134   $   116,152   $     162,835
Net sale to affiliated parties                      8,297           7,804        15,607          16,520
                                              ------------  --------------  ------------  --------------
Net sales                                          66,441          86,938       131,759         179,355
Cost of goods sold                                 60,233          71,156       119,734         146,385
                                              ------------  --------------  ------------  --------------
Gross profit on sales                               6,208          15,782        12,025          32,970
Selling, general and administrative                 3,661           4,403         7,070           8,351
Other (income)                                        (58)             22           (92)             (3)
                                              ------------  --------------  ------------  --------------
                     OPERATING PROFIT               2,605          11,357         5,047          24,622

Interest expense (income):
  Interest expense                                  4,288           4,489         8,601           9,003
  Interest (income)                                  (304)            (42)         (448)            (67)
                                              ------------  --------------  ------------  --------------
                                                    3,984           4,447         8,153           8,936

INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES                     (1,379)          6,910        (3,106)         15,686
Income tax expense (benefit)                         (626)          2,724        (1,303)          6,103
                                              ------------  --------------  ------------  --------------

INCOME (LOSS) FROM CONTINUING
OPERATIONS                                           (753)          4,186        (1,803)          9,583

Gain on disposal of discontinued operations
  less applicable income taxes                          0               0             0           2,632
                                              ------------  --------------  ------------  --------------

NET INCOME (LOSS)                             $      (753)  $       4,186   $    (1,803)  $      12,215
                                              ============  ==============  ============  ==============
</TABLE>


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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                          Six Months Ended
                                                     ----------------------------
                                                      January 1,    December 26,
                                                         2000           1998
                                                     ------------  --------------
                                                            (In Thousands)
<S>                                                  <C>           <C>
OPERATING ACTIVITIES
Net Income (loss)                                    $    (1,803)  $      12,215

Adjustments to reconcile net income to net cash
  provided by operating activities:
    Discontinued operations                                    0          14,025
    Depreciation                                           6,950           6,991
    Amortization                                             346             346
    Other                                                    490           9,257
    Changes in operating assets and liabilities           18,747         (15,175)
                                                     ------------  --------------

NET CASH PROVIDED BY OPERATING ACTIVITIES                 24,730          27,659

INVESTING ACTIVITIES
   Property, plant and equipment:
   Purchases                                              (2,308)         (4,419)
   Proceeds of dispositions                                   12           1,034
   Investing activities of discontinued operations             0              59
   Other                                                       0              87
                                                     ------------  --------------
NET CASH PROVIDED (USED) BY
                        INVESTING ACTIVITIES              (2,296)         (3,239)

FINANCING ACTIVITIES
  Proceeds from revolving lines of credit                      0          74,365
  Repayments on revolving lines of credit                                (96,000)
  Other                                                        0            (235)
                                                     ------------  --------------

NET CASH PROVIDED (USED)
 BY FINANCING ACTIVITIES                                       0         (21,870)
                                                     ------------  --------------

INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                        24,434           2,550

Cash and cash equivalents at beginning of year             9,903             544
                                                     ------------  --------------

CASH AND CASH EQUIVALENTS AT END OF PERIOD           $    32,337   $       3,094
                                                     ============  ==============
</TABLE>


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

January  1,  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  three and six months ended January 1, 2000 are not
necessarily  indicative  of the results that may be expected for the year ending
July  1,  2000.  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  3,  1999.

NOTE  B--DISCONTINUED  OPERATIONS

On  March 3, 1998, the Company made the decision to close its Stevcoknit Fabrics
division.   Accordingly,  results  of  that  segment  have  been  reported  as
discontinued  operations.  During  the  first  quarter  of fiscal year 1999, the
Company  reduced the estimate of the cost to close the business and recognized a
credit  of  $2.6 million in discontinued operations, net of income taxes of $1.8
million.

The  assets of discontinued business at January 1, 2000 and July 3, 1999, are as
follows:

<TABLE>
<CAPTION>
                                       January 1,   July 3,
(In thousands)                            2000       1999
                                       ----------  --------
<S>                                    <C>         <C>
Accounts Receivable (net of reserves)  $      625  $    763
 Other current assets                          17        17
                                       ----------  --------
      Total current assets             $      642  $    780
                                       ==========  ========
</TABLE>


NOTE  C--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.


                                        7
<PAGE>
NOTE  C--SUMMARIZED  FINANCIAL  INFORMATION  OF  SUBSIDIARY  -  CONTINUED

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

<TABLE>
<CAPTION>
                          January 1,     July 3,
                             2000          1999
                         ------------  ----------
<S>                      <C>           <C>
Current assets           $       219   $    194
Noncurrent assets                 92         71
Current liabilities              457        560
Noncurrent liabilities         1,195        980
Stockholder's (deficit)       (1,341)    (1,275)
</TABLE>

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

<TABLE>
<CAPTION>
                                            Six  Months  Ended
                                       ----------------------------
                                        January 1,    December 26,
                                           2000           1998
                                       ------------  --------------
<S>                                    <C>           <C>
Net sales - intercompany commissions   $     1,903   $       2,692
Costs and expenses                           2,020           2,296
Income from continuing operations             (117)            251
Net profit (loss)                              (66)           (444)
</TABLE>


NOTE  D--LONG-TERM  DEBT,  CREDIT  ARRANGEMENTS,  AND  NOTES  PAYABLE

At  each  of July 3, 1999, October 2, 1999, and January 1, 2000, no amounts were
outstanding  under  the Company's bank credit facility.  The Company's first and
second  fiscal  2000 quarter operating results have caused the Company not to be
in  compliance at the end of those quarters with the credit facility's covenants
respecting  minimum  interest coverage ratio, maximum leverage ratio and minimum
consolidated  tangible  net  worth.  The  same  covenants  are contained in, and
therefore  a  default  also exist under, operating leases of the Company with an
aggregate  outstanding  lease  balance  of  approximately  $5.5  million.

In  February  2000, the Company acquired for $15,619,744 a portion of its 9 5/8%
Senior  Notes.  The aggregate principal face amount of the acquired Senior Notes
was  $20,260,000.  This  transaction was an event of default under the Company's
bank  credit facility with respect to repayment of indebtedness while in default
(see  the preceding paragraph).  The Company's intent is to replace the existing
bank  credit facility with a new credit facility that provides for a lower level
of  borrowing  availability that is more consistent with the Company's needs and
plans.  The  Company  has  largely  negotiated  the  terms of a new facility and
believes  it  will be able to enter into the new agreement on terms satisfactory
to  the  Company  before  the  end  of  the third fiscal quarter.  The financial
covenants  in  the  new  credit  facility will automatically replace the current
financial  covenants  incorporated  into the operating leases.  Accordingly, the
Company  does not believe that these credit facility or operating lease covenant
defaults  will  have  a  material  adverse  effect  on  the  Company.

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  and  to  fund  its  planned  capital  expenditures.


                                        8
<PAGE>
NOTE  E--COMMITMENTS  AND  CONTINGENCIES

On  January  10,  2000, the North Carolina Department of Environment and Natural
Resources  requested  that  Delta  Mills,  Inc.  accept  responsibility  for
investigating  the  discharge  of  hazardous substances at an inactive hazardous
waste  site  known  as the Glen Raven Mills Site, Kings Mountain, North Carolina
(the  "Site").  A  predecessor  by  merger of Delta Mills, Inc., Park Yarn Mills
Company,  Inc.  ("Park  Yarn"),  owned the Site for approximately six (6) years,
from  approximately  1977  to 1983 (prior to the time Delta Mills, Inc. became a
subsidiary  of  Delta Woodside Industries, Inc.).  Delta Mills, Inc. is aware of
no  evidence  that  Park Yarn discharged or deposited any hazardous substance at
the Site or is otherwise a "responsible party" for the Site.  Further, Park Yarn
filed  bankruptcy  and  was  discharged  in  1983.  Although no assurance can be
provided,  any  liability  of Park Yarn for the Site may have been discharged by
the  bankruptcy  order.  Accordingly,  Delta  Mills,  Inc.  has  denied  any
responsibility  at  the  Site,  has  declined  to  undertake  any     activities
concerning  the  Site,  and  has  not  provided  for  any  reserves for costs or
liabilities  attributable  to  Park  Yarn.

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  plaintiff  seeks actual damages in excess of $1.8 million
and  consequential and incidental damages in excess of $7.4 million.  The actual
damages  claim is 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
is  based  on  the  allegation  that  the Company's failure to pay caused Marion
Mills,  LLC  to  shut down its business.  The Company's position is that it paid
some  of  the  invoices  claimed to be unpaid and did not pay the other invoices
because  of  defects in the goods supplied by the plaintiff (which were returned
per  the  plaintiff's  authorization).  The  Company,  therefore,  denies and is
vigorously  contesting  the  claims.


                                        9
<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
costs,  future  capital  expenditures, business strategy, competitive strengths,
competitive  weaknesses,  goals,  plans,  references  to  future  success  or
difficulties  and other similar information are forward-looking statements.  The
words  "estimate",  "project",  "anticipate", "expect", "intend", "believes" and
similar expressions, and discussions of strategy and intentions, are intended to
identify  forward-looking  statements.

     The  forward-looking  statements  in this Quarterly Report are based on the
Company's expectations and are necessarily dependent upon assumptions, estimates
and  data  that  the  Company  believes  are  reasonable and accurate but may be
incorrect, incomplete or imprecise.  Forward-looking statements are also 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).
Accordingly,  any forward-looking statements do not purport to be predictions of
future  events  or  circumstances  and  may  not  be  realized.

     The  Company  does  not  undertake  to  publicly  update  or  revise  the
forward-looking  statements  even if it becomes clear that any projected results
will  not  be  realized.

The  Company  manufactures  and  sells  finished woven fabrics to non-affiliated
parties  and manufactures and sells yarn, primarily to Delta Apparel, a division
of  Duck  Head  Apparel  Company,  Inc.,  which is owned by the Company's parent
company,  Delta  Woodside  Industries,  Inc.

Net  sales  to non-affiliated parties for the second quarter of fiscal year 2000
were $58.1 million as compared to $79.1 million in the same quarter of the prior
fiscal year, a decrease of 26.5%.  For the six months ended January 1, 2000, net
sales  to  non-affiliated  parties  were  $116.1  million  as compared to $162.8
million for the same period of fiscal 1999, a decrease of 28.7%.  Sales declines
were  in  both  cotton  and  synthetic  product  categories  and  were primarily
attributable  to  lower  unit  sales.  The synthetic product sales decline was a
result  of changing market demand due to increased import pressure.  In order to
match  capacity to current market demand, the Company has downsized this portion
of  the business.  To a lesser extent, market demand for cotton twill fabric has
also declined.  Management believes this decline in cotton twills, the Company's
core  product,  is  in part the result of garment manufacturers moving through a
backlog of inventory that has resulted in a slow down of replenishment orders to
the  fabric  supplier.

Net  sales to affiliated parties for the second quarter of fiscal year 2000 were
$8.3 million as compared to $7.8 million in the same quarter of the prior fiscal
year.  Affiliated  party  sales  were  $15.6  million  for  the six months ended
January  1,  2000  versus  $16.5 million for the same six-month period of fiscal
1999.  The  increase  was  due  to  an  increased  demand at the affiliate.  The
Company  believes  that  the affiliate will continue to purchase yarn throughout
the  third  quarter  of fiscal year 2000 or until the Rainsford yarn facility is
sold  to  Delta  Apparel Inc. This sale of the Rainsford facility is expected to
occur in connection with the Delta Apparel distribution described in the Form 10
of  Delta  Apparel, Inc (file no. 1-15583) and the Delta Woodside Form 8-K (file
no.  1-10095)  filed with the Securities and Exchange Commission on December 29,
1999  and  December  30,  1999,respectively.  Management  anticipates  the Delta
Apparel  distribution  to  take  place  in  April  of  2000.

Gross  profit  as  a  percent of sales was 9.3% for the second quarter of fiscal
year  2000  compared  to  18.2%  in  the  prior  year quarter. Gross profit as a
percentage  of  sales  was  9.1%  for  the  six  months ended January 1, 2000 as
compared  to  18.4%  for  the  same  period  of fiscal 1999. These declines were
primarily  due  to these three factors: 1) A decline in sales volume and related
manufacturing  efficiency  losses,  2)  the  absence  of  the USDA cotton rebate
program  for  the major part of the first six months of the current fiscal year,
and  3)  the  cost  associated  with  the  downsizing  of  the synthetic product
category.


                                       10
<PAGE>
Item  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
          RESULTS  OF  OPERATIONS  -  CONTINUED

Selling,  general  and  administrative  costs  for  the second quarter were $3.7
million  and  5.5%  of  sales  compared to $4.4 million and 5.1% of sales in the
prior  year quarter.  Year to date selling, general and administrative costs for
fiscal  2000  were  $7.1 million or 5.4% of sales as compared to $8.4 million or
4.7%  of  net  sales  for  the  same  period  of  fiscal  1999.

The  Company reported a net loss of $.8 million for the second quarter of fiscal
year  2000 as compared to income of $4.2 million in the prior year quarter.  The
Company reported a loss of $1.8 million for the six months ended January 1, 2000
as  compared  to  net  income of $12.2 million for the period ended December 26,
1998.  The  $12.2  million income figure for 1999 includes a $2.6 million pretax
gain  for  the  reduction  of  restructuring  reserves  related  to discontinued
operations.

The  Company's order backlog at January 1, 2000 was $66.8 million, down from the
$85.4  million  order  backlog  at  December  26,  1998.  The decline was spread
throughout  all  product  lines.

Inventory  for  the quarter ended January 1, 2000 was contained at $45.9 million
in  line  with  reduced  sales volume.  This compares with inventory of $45.5 at
July  3,  1999  and  $55.6  million  at  December  26,  1998.

The Company has a variety of computers and systems that are subject to Year 2000
issues.  The Year 2000 problem arose because many existing computer programs use
only  the  last two digits to refer to a year.  Therefore, these programs do not
properly  recognize  a  year that begins with "20" instead of the familiar "19".
If  not  corrected,  many  computer  applications could fail, or cause erroneous
results.  The  Company  has  considered  the  impact  of Year 2000 issues on the
Company's  computer  information  systems  and other equipment that use embedded
technology such as micro-controllers, and has completed a remediation plan.  The
Company's Year 2000 plan included 1) Identifying year 2000 issues, 2) Assessment
and  prioritization  of  issues,  3)  Remediation,  and 4) Testing for Year 2000
compliance.  As  a part of its plan to achieve Year 2000 compliance, the Company
decided to accelerate the schedule for implementation of certain data collection
systems.  The  cost  of  these  systems, which were in place prior to the end of
1999,  was  approximately  $1.2  million.  In  addition,  the  Company  spent
approximately  $21,000  on  software improvements and remediation work in fiscal
year  1998,  $216,000  in fiscal year 1999, and an additional $.2 million in the
first  six  months  of fiscal year 2000.  No further spending is anticipated for
remediation  and  software improvements.  Through the month of January 2000, the
Company  has  experienced no material problems associated with Year 2000 issues.
The Company believes that its Year 2000 remediation efforts were successful, and
that  no  further  remediation  efforts  are  necessary.

At  each  of July 3, 1999, October 2, 1999, and January 1, 2000, no amounts were
outstanding  under  the Company's bank credit facility.  The Company's first and
second  fiscal  2000 quarter operating results have caused the Company not to be
in  compliance at the end of those quarters with the credit facility's covenants
respecting  minimum  interest coverage ratio, maximum leverage ratio and minimum
consolidated  tangible  net  worth.  The  same  covenants  are contained in, and
therefore  a  default  also exist under, operating leases of the Company with an
aggregate  outstanding  lease  balance  of  approximately  $5.5  million.

In  February  2000, the Company acquired for $15,619,744 a portion of its 9 5/8%
Senior  Notes.  The aggregate principal face amount of the acquired Senior Notes
was  $20,260,000.  This  transaction was an event of default under the Company's
bank  credit facility with respect to repayment of indebtedness while in default
(see  the preceding paragraph).  The Company's intent is to replace the existing
bank  credit facility with a new credit facility that provides for a lower level
of  borrowing  availability that is more consistent with the Company's needs and
plans.  The  Company  has  largely  negotiated  the  terms of a new facility and
believes  it  will be able to enter into the new agreement on terms satisfactory
to  the  Company  before  the  end  of  the third fiscal quarter.  The financial
covenants  in  the  new  credit  facility will automatically replace the current
financial  covenants  incorporated  into the operating leases.  Accordingly, the
Company  does not believe that these credit facility or operating lease covenant
defaults  will  have  a  material  adverse  effect  on  the  Company.

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  and  to  fund  its  planned  capital  expenditures.


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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.  At January 1, 2000, a 10% decline in market price of the Company's
fixed price contracts would have a negative impact of approximately $5.0 million
on  the  value  of  the  contracts.


PART  II.  OTHER  INFORMATION

Item  1.   Legal  Proceedings

On  January  10,  2000, the North Carolina Department of Environment and Natural
Resources  requested  that  Delta  Mills,  Inc.  accept  responsibility  for
investigating  the  discharge  of  hazardous substances at an inactive hazardous
waste  site  known  as the Glen Raven Mills Site, Kings Mountain, North Carolina
(the  "Site").  A  predecessor  by  merger of Delta Mills, Inc., Park Yarn Mills
Company,  Inc.  ("Park  Yarn"),  owned the Site for approximately six (6) years,
from  approximately  1977  to 1983 (prior to the time Delta Mills, Inc. became a
subsidiary  of  Delta Woodside Industries, Inc.).  Delta Mills, Inc. is aware of
no  evidence  that  Park Yarn discharged or deposited any hazardous substance at
the Site or is otherwise a "responsible party" for the Site.  Further, Park Yarn
filed  bankruptcy  and  was  discharged  in  1983.  Although no assurance can be
provided,  any  liability  of Park Yarn for the Site may have been discharged by
the  bankruptcy  order.  Accordingly,  Delta  Mills,  Inc.  has  denied  any
responsibility  at  the  Site,  has  declined  to  undertake  any     activities
concerning  the  Site,  and  has  not  provided  for  any  reserves for costs or
liabilities  attributable  to  Park  Yarn.

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  plaintiff  seeks actual damages in excess of $1.8 million
and  consequential and incidental damages in excess of $7.4 million.  The actual
damages  claim is 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
is  based  on  the  allegation  that  the Company's failure to pay caused Marion
Mills,  LLC  to  shut down its business.  The Company's position is that it paid
some  of  the  invoices  claimed to be unpaid and did not pay the other invoices
because  of  defects in the goods supplied by the plaintiff (which were returned
per  the  plaintiff's  authorization).  The  Company,  therefore,  denies and is
vigorously  contesting  the  claims.

Item  5     Other  Information*

Item  6.    Exhibits  and  Reports  on  Form  8-K

            (a)  The  Company  filed  Form 8-K with date of October 4, 1999.
                 Items reported were:

                 Item  5.  Other  Events

                 Item  7.  Financial  Statements  and  Exhibits

*Item  5  is  not  applicable.


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                                   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 15, 2000                 /s/  David  R.  Palmer
      -----------------                 ----------------------
                                        David  R.  Palmer
                                        Controller
                                        (Authorized signatory and
                                        chief accounting officer)


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