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 March 31, 2001
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  May  11,  2001.

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--
  March  31,  2001  and  July  1,  2000                                      3-4

  Condensed  consolidated  statements  of  operations--
  Three  months  and  nine  months  ended  March  31,  2001
  and  April  1,  2000                                                         5

  Condensed  consolidated  statements  of  cash
  flows-Nine  months  ended  March  31,  2001
  and  April  1,  2000                                                         6

  Notes  to  condensed  consolidated  financial
  statements-March  31,  2001                                                7-8

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


Part  II.  OTHER  INFORMATION                                                 11

SIGNATURES                                                                    12


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

ITEM 1.  FINANCIAL STATEMENTS

DELTA MILLS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS                           March 31,        July 1,
                                                                   2001           2000
                                                               ------------  ---------------
                                                               (Unaudited)
                                                                      (In thousands)
<S>                                                            <C>           <C>

ASSETS

CURRENT ASSETS

  Cash and cash equivalents                                    $     1,721   $        18,287
  Accounts receivable:
    Factor and other                                                50,596            71,670
    Less allowances for doubtful accounts and returns                   87               173
                                                               ------------  ---------------
                                                                    50,509            71,497

Inventories:
  Finished goods                                                    10,051             4,916
  Work in process                                                   26,011            31,324
  Raw materials and supplies                                         7,567             7,679
                                                               ------------  ---------------
                                                                    43,629            43,919

Deferred income taxes                                                1,624             1,208
Other assets                                                           547               467
                                                               ------------  ---------------
                TOTAL CURRENT ASSETS                                98,030           135,378


PROPERTY, PLANT AND EQUIPMENT
  Cost                                                             165,727           161,670
  Accumulated depreciation                                          78,527            70,322
                                                               ------------  ---------------
                                                                    87,200            91,348

DEFERRED LOAN COSTS AND OTHER ASSETS                                 1,786             2,886
                                                               ------------  ---------------
                        TOTAL ASSETS                           $   187,016   $       229,612
                                                               ============  ===============
</TABLE>

See notes to consolidated financial statements.


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

CONDENSED CONSOLIDATED BALANCE SHEETS-Continued

                                                                  March 31,     July 1,
                                                                   2001           2000
                                                               ------------  ---------------
                                                               (Unaudited)
                                                                     (In thousands)
<S>                                                            <C>           <C>

LIABILITIES

CURRENT LIABILITIES
  Trade accounts payable                                       $     9,664   $        14,514
  Payable to affiliates                                                (78)            1,318
  Accrued employee compensation                                      1,323             2,858
  Accrued and sundry liabilities                                    19,534            21,530
                                                               ------------  ---------------
                       TOTAL CURRENT LIABILITIES                    30,443            40,220

LONG-TERM DEBT                                                      83,815           115,078
DEFERRED INCOME TAXES                                               11,554            12,314
DEFERRED COMPENSATION                                                6,444             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                                                  2,968             4,395
                                                               ------------  ---------------
TOTAL SHAREHOLDERS' EQUITY                                          54,760            56,187
                                                               ------------  ---------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                     $   187,016   $       229,612
                                                               ============  ===============
</TABLE>

See  notes  to  consolidated  financial  statements.


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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

                                                    Three Months Ended       Nine Months Ended
                                                 -----------------------  -----------------------
                                                  March 31,    April 1,    March 31,    April 1,
                                                    2001         2000        2001         2000
                                                 -----------  ----------  -----------  ----------
                                                      (In  thousands)          (In  thousands)

<S>                                              <C>          <C>         <C>          <C>
Net sales to non-affiliated parties              $   52,991   $  62,185   $  175,887   $ 178,337
Net sales to affiliated parties                           0       8,439            0      24,046
                                                 -----------  ----------  -----------  ----------
Net sales                                            52,991      70,624      175,887     202,383
Cost of goods sold                                   50,795      61,058      158,500     180,792
                                                 -----------  ----------  -----------  ----------
Gross profit                                          2,196       9,566       17,387      21,591
Selling, general and administrative expenses          3,169       3,551       10,103      10,622
Other (income)loss                                       (3)        419         (380)        327
                                                 -----------  ----------  -----------  ----------
                     OPERATING PROFIT (LOSS)           (970)      5,596        7,664      10,642

Interest expense (income):
  Interest expense                                    2,666       4,267        8,302      12,867
  Interest (income)                                     (73)       (295)        (481)       (743)
                                                 -----------  ----------  -----------  ----------
                                                      2,593       3,972        7,821      12,124

INCOME(LOSS) BEFORE INCOME TAXES
AND EXTRAORDINARY ITEM                               (3,563)      1,624         (157)     (1,482)
Income tax expense (benefit)                         (1,266)        706          (45)       (597)
                                                 -----------  ----------  -----------  ----------

INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM                                   (2,297)        918         (112)       (885)

Extraordinary gain on early retirement of debt
  less applicable income taxes                            0       3,502        1,585       3,502
                                                 -----------  ----------  -----------  ----------

NET INCOME (LOSS)                                $   (2,297)  $   4,420   $    1,473   $   2,617
                                                 ===========  ==========  ===========  ==========
</TABLE>

See  notes  to  consolidated  financial  statements.


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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                                    Nine Months Ended
                                                             --------------------------------
                                                                March 31,        April 1,
                                                                  2001             2000
                                                             ---------------  ---------------
                                                                     (In Thousands)
<S>                                                          <C>              <C>

OPERATING ACTIVITIES
Net Income                                                   $        1,473   $        2,617

Adjustments to reconcile net income to net cash
 provided by operating activities:
    Depreciation                                                      8,204           10,403
    Amortization                                                        318              501
    Write off of loan origination costs - line of credit                783              419
    Gain on early retirement of debt                                 (3,242)          (5,883)
    Provision for deferred income taxes                              (1,176)               0
    Losses (gains) on disposition of property and equipment            (341)               0
    Deferred compensation                                               631                0
    Changes in operating assets and liabilities                      11,867           14,490
                                                             ---------------  ---------------

NET CASH PROVIDED BY OPERATING ACTIVITIES                            18,517           22,547

INVESTING ACTIVITIES
  Property, plant and equipment:
    Purchases                                                        (4,612)          (3,304)
    Proceeds of dispositions of assets                                  450              131

                                                             ---------------  ---------------
NET CASH USED BY
                INVESTING ACTIVITIES                                 (4,162)          (3,173)

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)         (20,897)
  Dividends paid                                                     (2,900)               0
  Other                                                                   0              (50)
                                                             ---------------  ---------------
NET CASH USED
 BY FINANCING ACTIVITIES
                                                                    (30,921)         (20,947)
                                                             ---------------  ---------------

DECREASE IN CASH AND
  CASH EQUIVALENTS                                                  (16,566)          (1,573)

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

CASH AND CASH EQUIVALENTS AT END OF QUARTER                  $        1,721   $        8,330
                                                             ===============  ===============
</TABLE>

See  notes  to  consolidated  financial  statements.


                                        6
<PAGE>
DELTA  MILLS,  INC.

NOTES  TO  CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS  (UNAUDITED)


NOTE  A--BASIS  OF  PRESENTATION

The  accompanying unaudited consolidated condensed financial statements of Delta
Mills,  Inc.  ("the  Company")  have been prepared in accordance with accounting
principles  generally  accepted  in  the  United  States  of America 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  accounting  principles generally accepted in the United
States  of  America  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 nine months ended March 31, 2001 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") 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 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 and does not comprise a
material portion of the Company's assets or operations.  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):

                           March 31,    July 1,
                             2001        2000
                         -----------  -----------

Current assets           $      234   $    234
Noncurrent assets                93        117
Current liabilities           1,527      1,479
Noncurrent liabilities          955        785
Stockholder's (deficit)      (2,155)    (1,913)

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

                                          Nine Months Ended
                                       -----------------------
                                        March 31,    April 1,
                                          2001         2000
                                       -----------  ----------
Net sales - intercompany commissions   $    2,902   $   2,924
Costs and expenses                          3,079       3,101
Operating Profit (Loss)                      (177)       (177)
Net profit (loss)                            (242)        (95)


                                        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 March 31, 2001, 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. In the nine months
ended  March  31,  2001,  the  Company  paid  dividends of $2.9 million to Delta
Woodside  Industries,  Inc. In August, 1997 the Company issued $150 million of 9
5/8%  senior  notes  that  mature  in  August,  2007.  At  March  31,  2001, the
outstanding  balance  of  the  notes was $83,815,000, unchanged from the quarter
ended  December  31,  2000.


                                        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 March 31, 2001
were  $53.0  million  as  compared  to $62.2 million in the third quarter of the
prior  fiscal  year, a decrease of 14.8%. The decline in sales was primarily due
to  a reduction in sales volume which reflects the downward adjustment in market
demand for the apparel industry. 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 nine
months  ended  March  31,  2001, net sales to non-affiliated parties were $175.9
million  as  compared to $178.3 million for the nine months ended April 1, 2000.

Gross  profit  was $2.2 million and 4.1% of sales in the third quarter of fiscal
year  2001.  This compares to gross profit of $9.6 million and 13.5% of sales in
the  prior year quarter.  For the nine months ended March 31, 2001, gross profit
was $17.4 million and 9.9% of net sales , as compared to $21.6 million and 10.7%
of  net  sales for the same nine month period of the prior fiscal year. Compared
to  the  previous  year,  the  negative  results  for  the  current quarter were
primarily  due to decreased running schedules that were caused by the decline in
sales  and  market  demand.  Continued  price  pressure  and  higher  energy and
chemical  costs also had a negative impact on the current quarter and nine month
results.

Selling,  general and administrative expense (SG&A) was $3.2 million and 6.0% of
net  sales  for  the third quarter of fiscal year 2001 compared to SG&A of  $3.6
million  and 5.0% of net sales for the prior year quarter.  Selling, general and
administrative  expense  (SG&A)  was $10.1 million and 5.7% of net sales for the
nine  months  ended  March  31, 2001 from SG&A of  $10.6 million and 5.3% of net
sales  for  the  prior  year  nine  months  ended  April  1,  2000.

The  loss  before  income  taxes and extraordinary item was $3.6 million for the
third  quarter  of  fiscal 2001 compared to income of  $1.6 million in the prior
year  quarter. The loss before income taxes and extraordinary items was $157,000
for  the  nine months ended March 31, 2001 as compared to a loss of $1.5 million
for  the  nine  months  ended  April  1,  2000.


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


For  the nine months ended March 31, 2001, the extraordinary gain of $1,585,000,
net of taxes of $874,000, occurred when the Company purchased $15.6 million face
amount  of  its  9  5/8% Senior Notes for $13.8 million.  For the three and nine
months  ended April 1, 2000, the extraordinary gain, net of taxes of $2,381,000,
was  $3,502,000.

The  net  loss for the quarter ended March 31, 2001 was $2.3 million compared to
net income of  $4.4 million in the prior year quarter.   Net income for the nine
months  ended  March  31,  2001  was  $1.5 million as compared to income of $2.6
million  for  the  nine  months  ended  April  1,  2000.

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.


                                       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  filed a motion for a new trial. On February 8, 2001, the motion for a
new  trial  was  denied.


                                       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    May  11,  2001                               By:  /s/  W.H. Hardman, Jr.
      ------------------                             ---------------------------
                                                     W.H.  Hardman,  Jr.
                                                     Chief  Financial  Officer


                                       12
<PAGE>