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 27, 1997
                                    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:   1-9734

                             ONEITA INDUSTRIES, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

            DELAWARE                                    57-0351045
-------------------------------                    --------------------
(State or other jurisdiction of                      I.R.S. Employer
incorporation or organization)                     (Identification No.)

4130 FABER PLACE DRIVE, SUITE 200, CHARLESTON, SC         29405
-------------------------------------------------       ----------
(Address of principal executive offices)                (Zip Code)

                                (803) 529 - 5225
               --------------------------------------------------
              (Registrant's telephone number, including area code)

    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, and (2) has been subject to such filing for
the past 90 days.

                       X      Yes                   No
                     -----                   -----

    Indicate the number of shares outstanding of each of the issuer's classes of
common stock,  as of the latest  practicable  date.  9,149,339  shares of Common
Stock as of January 30, 1998.
<PAGE>
                                    FORM 10-Q

                                TABLE OF CONTENTS
                                -----------------


PART I - FINANCIAL INFORMATION (Unaudited)
         --------------------- 
     Item 1:   Financial Statements:

        Condensed Consolidated Balance Sheets at
        December 27, 1997 and September 27, 1997 ..............  1

        Condensed Consolidated Statements of Operations for
        the Three Months Ended December 27, 1997 and
        December 28, 1996 ...................................... 2

        Condensed Consolidated Statements of Cash Flows for
        the Three Months Ended December 27, 1997
        and December 28, 1996  ................................  3

        Notes to Condensed Consolidated Financial Statements ..  4

     Item 2:   Management's Discussion and Analysis of Financial
               Condition and Results of Operations  ............ 6


PART II - OTHER INFORMATION
          -----------------
     Item 1:   Legal Proceedings .............................  12

     Item 2:   Changes in Securities .........................  12

     Item 3:   Defaults upon Senior Securities ...............  12

     Item 4:   Submission of Matters to a Vote of Security
               Holders .......................................  12

     Item 5:   Other Information .............................  12

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

     Signature ...............................................  13
<PAGE>
                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In thousands, except share data)
<TABLE>
<CAPTION>
                                                  December 27,     September 27,
                                                     1997               1997
                                                  ------------     -------------
                                                                     (Unaudited)
          (Note 1)
<S>                                                <C>                <C>
ASSETS
------
CURRENT ASSETS:
  Cash                                              $  1,585          $  1,654
  Accounts receivable, less
    allowance for doubtful accounts                    9,506            17,200
  Inventories (Note 2)                                28,436            31,214
  Prepaid expenses and other
     current assets                                    1,649             1,024
                                                    --------          --------
    Total current assets                              41,176            51,092

PROPERTY, PLANT AND EQUIPMENT, at cost,
  less accumulated depreciation and
  amortization                                        31,848            32,733

OTHER ASSETS                                           2,856             3,152
                                                    --------          --------
                                                    $ 75,880          $ 86,977
                                                    ========          ========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
  Long-term debt in technical default,
    classified as current                           $ 70,654          $ 70,654
  Current portion of long-term debt
     and capital leases                                1,405             1,405
  Accounts payable                                     3,832             4,117
  Accrued liabilities                                 17,170            17,511
                                                    --------          --------
    Total current liabilities                         93,061            93,687

CAPITAL LEASE OBLIGATIONS                              1,615             2,032

SHAREHOLDERS' EQUITY:
  Preferred Stock, Series I, par
    value $1.00 per share, 2,000,000
    shares authorized, none issued                       --                --
  Common Stock, $.25 par value,
    15,000,000  shares  authorized,
    9,149,339  shares issued and 
    outstanding at December 27, 1997
    and September 27, 1997                             2,287             2,287

  Other shareholders' equity                         (21,083)          (11,029)
                                                    --------          --------   
                                                    $ 75,880          $ 86,977
                                                    ========          ========
<FN>
          See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                   Three Months Ended
                                                 -------------------------
                                                 December 27,  December 28,
                                                    1997            1996
                                                 ------------  ----------- 
<S>                                                 <C>          <C>
Net sales                                           $ 26,342     $ 33,897

Cost of sales                                         31,227       34,639
                                                    --------     --------
     Gross profit (loss)                              (4,885)        (742)

Selling, general and administrative
   expenses                                            3,153        3,288
                                                   ---------      --------  
     Loss from operations                             (8,038)      (4,030)

Interest expense                                       2,016        1,880
                                                   ---------      --------
     Loss before provision for
       income taxes                                  (10,054)       (5,910)

Benefit for income taxes                                  --           --
                                                   ---------      --------
     Net loss                                      $ (10,054)     $ (5,910)
                                                   =========      ========
     Net loss per share (Note 3)                     $ (1.10)       $ (.65)
                                                     =======        ======









<FN>
          See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
                    ----------------------------------------
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -----------------------------------------------
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                        -------------------------
                                                        December 27,  December 28,
                                                            1997          1996
                                                        -----------   -----------
<S>                                                       <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                                                 $(10,054)     $(5,910)
  Adjustments to reconcile net loss
      to net cash provided by
      operating activities:
    Depreciation and amortization                             1,357        1,633
    Provision for losses on accounts receivable                 120           17
  Consolidation charges                                      (1,048)          --
  Net change in assets and liabilities                       10,266        8,659
                                                           --------     --------       
      Net cash provided by operating activities                 641        4,399
                                                           --------     -------- 
CASH FLOWS FROM INVESTING ACTIVITIES:

  Acquisition of property, plant and equipment                 (317)        (559)
  Proceeds from sale of property, plant
    and equipment                                                24          510
                                                           --------     -------- 
      Net cash used in investing activities                    (293)         (49)
                                                           --------     --------
CASH FLOWS FROM FINANCING ACTIVITIES:

  Payment of long-term debt and capital
    lease obligations                                          (417)      (1,950)
                                                           --------     -------- 
      Net cash used in financing activities                    (417)      (1,950)
                                                           --------     -------- 
NET INCREASE (DECREASE) IN CASH                                 (69)       2,400

CASH AT BEGINNING OF PERIOD                                   1,654        9,135
                                                           --------     --------
CASH AT END OF PERIOD                                      $  1,585     $ 11,535
                                                           ========     ======== 







<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
                    ----------------------------------------
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              ----------------------------------------------------
                  (Unaudited) (In thousands, except share data)


(1)       Basis of Presentation  -
          ---------------------
     Oneita Industries, Inc. (the Company) manufactures and markets high quality
activewear including T-shirts and fleecewear,  and infantswear primarily for the
newborn  and toddler  markets.  These  products  are  marketed to the  imprinted
sportswear industry and to major retailers.

   The accompanying  consolidated financial statements have been prepared on the
basis of accounting  principles  applicable to a going concern and  contemplates
the  realization of assets and the settlement of liabilities  and commitments in
the  normal  course  of  business.   The  accompanying   consolidated  financial
statements do not include any  adjustments  relating to the  recoverability  and
classification  of recorded asset amounts or the amounts and  classification  of
liabilities  that might  result  should the  Company be unable to  continue as a
going concern.

  The Company  incurred a net loss of $40,656 for the year ended  September  27,
1997.  Market  pressures  that  resulted in reduced sales volumes and prices and
operating  losses  during the year ended  September  27, 1997 are  continuing in
fiscal 1998.  Management's operating plans include continued close monitoring of
costs and concentrating the manufacturing and sales efforts on a more profitable
product  mix. In September  1997,  the Company  announced a plan to  consolidate
certain  of its  operations  in order to  further  lower  its costs and make its
operations  more  efficient.  The  consolidation  involves  the  closing  of one
facility,  the write down to estimated fair value of certain  excess  production
equipment  and the  shift  of more  assembly  operations  to  existing  offshore
facilities.

     At December 27, 1997, the Company was and continues to be in non-compliance
with certain terms of its long-term revolving credit agreement, a loan agreement
with an institutional  lender,  and subordinated notes held by Robert M. Gintel.
Mr. Gintel resigned as Chairman of the Board and as a director of the Company on
August 8, 1997.  These  obligations,  $57,000,  $6,154  and $7,500 in  principal
amount,  respectively,  have been classified as current liabilities. The Company
has entered into  agreements  with its lenders to restructure  these  agreements
through the  pre-negotiated  Chapter 11 case discussed below. These obligations,
which aggregate $70,654,  plus accrued interest and fees, will be exchanged for;
1) payment of $15,000 in cash, 2) the issuance of various notes totaling $38,500
and 3) 79.75% of the outstanding Common Stock of the Company.

     On January  23,  1998,  the Company  filed a Chapter 11  petition  with the
United States  Bankruptcy Court for the District of Delaware under Chapter 11 of
<PAGE>

the  Bankruptcy  Code together with a Plan of  Reorganization  implementing  the
restructuring with its lenders (the "Plan"). Prior to the filing, the holders of
the debt mentioned in the preceding  paragraph  entered into agreements with the
Company  agreeing,  among  other  things,  to  cooperate  with  the  Company  in
implementing the Plan. A hearing to consider approval of a Disclosure  Statement
is scheduled  for March 13, 1998 and a hearing to consider  confirmation  of the
Plan is scheduled for April 29, 1998. The Company has obtained  permission  from
the Bankruptcy Court to continue to pay most  pre-petition  claims held by trade
creditors in order to avoid any  disruption in its business.  In addition,  the
Company has obtained interim  authority from the Bankruptcy Court to continue to
use cash collateral and to borrow up to $5,000 from Foothill Capital Corp. under
a  Debtor-in-Possession  Facility.  A hearing to consider  final approval of the
cash  collateral  stipulation  with  certain  of its  lenders  and to  borrow an
additional $5,000 under the Debtor-in-Possession  Facility with Foothill Capital
Corp. is scheduled for February 26, 1998. The  Debtor-in-Possession  Facility is
secured  by a pledge of  certain  property,  plant and  equipment.  The  Company
estimates that it will emerge from these Bankruptcy  Proceedings before June 30,
1998. However,  there can be no assurance that the Plan will be confirmed by the
Bankruptcy  Court or that other  events  will not occur in the  bankruptcy  case
affecting the Company's ability to implement the Plan. If either of these events
take place, a  non-negotiated  Chapter 11 is likely to occur.  The Company has a
commitment  from Foothill  Capital Corp.  for a new  revolving  credit  facility
pursuant to which  financing  will be available  upon  emergence from Chapter 11
Proceedings. This facility will permit the borrowing of up to $35,000 based upon
availability  under a borrowing base formula (estimated to be $25,000 at date of
emergence) and will be secured primarily by accounts receivable and inventory.

   Of the $38,500  restructured  debt,  $37,500 consist of senior notes that are
due in three years and bears  interest at 12%. The  interest  accrues but is not
paid in cash for the first  two years of the note  term,  except  that  interest
payments  in the first two years as well as note  principal  prepayments  may be
triggered upon the Company achieving  certain targets.  The senior notes will be
secured by the pledge as collateral of certain  property,  plant and  equipment.
The remaining  $1,000 of restructured  debt will consist of a subordinated  note
with principal and interest, accruing at 10%, payable in 10 years.

   The  accompanying  condensed  consolidated  financial  statements  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.  The balance sheet at September 27, 1997 has been derived
from  the  audited  financial  statements  at  that  date.  In  the  opinion  of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
three-month period ended December 27, 1997 are not necessarily indicative of the
results that may be expected for the year ended  September 26, 1998. For further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto  included in the Company's  annual report to  shareholders  for the year
ended September 27, 1997.
<PAGE>
(2)       Inventories   -
          -----------
   Inventories,  stated at the lower of cost or  market,  are  comprised  of the
following:
<TABLE>
<CAPTION>
    
                                                 December 27,   September 27,
                                                     1997           1997
                                                 -----------    ------------
<S>                                                 <C>           <C>     
     Finished goods..................               $ 17,613      $ 20,095

     Work in process.................                  8,748         9,313

     Raw materials and supplies......                  2,075         1,806
                                                    --------      --------
                                                    $ 28,436      $ 31,214
                                                    ========      ========   
</TABLE>

(3)       Net Income Per Share   -
          --------------------
   Earnings per share are calculated using the weighted average number of shares
of common stock, and where dilutive, common stock equivalents outstanding during
each period.  Shares used in computing per share results were 9,149,339 for each
of the three months ended December 27, 1997 and December 28, 1996.
<PAGE>
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
           -----------------------------------------------------------
                            AND RESULTS OF OPERATIONS
                            -------------------------  
                                 (In thousands)

Results of Operations
---------------------
   Net sales for the three  months  ended  December  27,  1997 were  $26,342  as
compared to $33,897 in the  comparable  period of the prior year,  a decrease of
$7,555 or 22.3%.  The decrease was due primarily to reduced unit selling  prices
of $5,800 caused by continued production  overcapacity in the industry and lower
priced imports and to the sale of  inventories at discounted  prices to generate
cash flow.  Additionally,  increased competition in the market place resulted in
lower units sold decreasing sales further by $1,750.

   A gross  profit  (loss) for the quarter  ended  December 27, 1997 of $(4,885)
decreased  $(4,143) from the comparable  period of the prior year.  Gross profit
(loss),  as a percentage of net sales,  decreased to (18.5)% compared to (2.2)%.
The  reduction in gross profit was caused by discounted  sales prices  mentioned
above and additional inventory writedowns of $1,000 reflecting further reduction
in selling prices late in the first quarter, offset by generally lower operating
costs resulting from the Company's cost reduction program discussed in Note 2 of
Notes to Condensed Consolidated Financial Statements.

   Selling,  general and  administrative  expenses  for the three  months  ended
December 27, 1997 decreased $645 from the comparable period of the prior year as
a result of the Company's cost reduction program discussed in Note 1 of Notes to
Condensed  Consolidated  Financial  Statements  offset  by  $510  of  legal  and
professional expenditures related to the debt restructuring.

   Interest expense,  net of interest income,  for the first quarter of 1997 was
$2,016 compared to $1,880 for the  corresponding  period last year. The increase
was due primarily to higher  borrowing  rates. At December 27, 1997, the Company
was not in compliance with certain terms of its revolving  credit  agreement and
accordingly interest at higher rates are paid during the default period.

Liquidity and Capital Resources
-------------------------------
  The Company  had a working  capital  deficit of $51,885 at  December  27, 1997
compared to a deficit of $42,595 at September  27, 1997.  This change was caused
primarily by reductions in accounts receivable and inventories.

  The Company had a decrease in cash of $69 in the first  quarter of fiscal 1998
compared to a net increase in cash of $2,400 in the comparable period last year.
Cash provided by operating  activities for the first fiscal quarters of 1998 and
1997 were $641 and $4,399, respectively. The primary components of cash provided
by operating  activities  for both quarters were  decreases in  receivables  and
inventories as well as the net loss adjustment for depreciation and amortization
offset by net losses in both quarters.
<PAGE>
  Cash used in investing  activities  the first quarter of fiscal 1988 consisted
mostly of capital expenditures of $317.

     At December 27, 1997, the Company was and continues to be in non-compliance
with certain terms of its long-term revolving credit agreement, a loan agreement
with an institutional  lender,  and subordinated notes held by Robert M. Gintel.
Mr. Gintel resigned as Chairman of the Board and as a director of the Company on
August 8, 1997.  These  obligations,  $57,000,  $6,154  and $7,500 in  principal
amount,  respectively,  have been classified as current liabilities. The Company
has entered into  agreements  with its lenders to restructure  these  agreements
through the  pre-negotiated  Chapter 11 case discussed below. These obligations,
which aggregate $70,654,  plus accrued interest and fees, will be exchanged for;
1) payment of $15,000 in cash, 2) the issuance of various notes totaling $38,500
and 3) 79.75% of the outstanding Common Stock of the Company.

     On January  23,  1998,  the Company  filed a Chapter 11  petition  with the
United States  Bankruptcy Court for the District of Delaware under Chapter 11 of
the  Bankruptcy  Code together with a Plan of  Reorganization  implementing  the
restructuring with its lenders (the "Plan"). Prior to the filing, the holders of
the debt mentioned in the preceding  paragraph  entered into agreements with the
Company  agreeing,  among  other  things,  to  cooperate  with  the  Company  in
implementing the Plan. A hearing to consider approval of a Disclosure  Statement
is scheduled  for March 13, 1998 and a hearing to consider  confirmation  of the
Plan is scheduled for April 29, 1998. The Company has obtained  permission  from
the Bankruptcy Court to continue to pay most  pre-petition  claims held by trade
creditors in order to avoid any  disruption  in its business.  In addition,  the
Company has obtained interim  authority from the Bankruptcy Court to continue to
use cash collateral and to borrow up to $5,000 from Foothill Capital Corp. under
a  Debtor-in-Possession  Facility.  A hearing to consider  final approval of the
cash  collateral  stipulation  with  certain  of its  lenders  and to  borrow an
additional $5,000 under the Debtor-in-Possession  Facility with Foothill Capital
Corp. is scheduled for February 26, 1998. The  Debtor-in-Possession  Facility is
secured  by a pledge of  certain  property,  plant and  equipment.  The  Company
estimates that it will emerge from these Bankruptcy  Proceedings before June 30,
1998. However,  there can be no assurance that the Plan will be confirmed by the
Bankruptcy  Court or that other  events  will not occur in the  bankruptcy  case
affecting the Company's ability to implement the Plan. If either of these events
take place, a  non-negotiated  Chapter 11 is likely to occur.  The Company has a
commitment  from Foothill  Capital Corp.  for a new  revolving  credit  facility
pursuant to which  financing  will be available  upon  emergence from Chapter 11
Proceedings. This facility will permit the borrowing of up to $35,000 based upon
availability  under a borrowing base formula (estimated to be $25,000 at date of
emergence) and will be secured primarily by accounts receivable and inventory.

   Of the $38,500  restructured  debt,  $37,500 consist of senior notes that are
due in three years and bears  interest at 12%. The  interest  accrues but is not
paid in cash for the first  two years of the note  term,  except  that  interest
payments  in the first two years as well as note  principal  prepayments  may be
triggered upon the Company achieving  certain targets.  The senior notes will be
secured by the pledge as collateral of certain  property,  plant and  equipment.
The remaining  $1,000 of restructured  debt will consist of a subordinated  note
with principal and interest, accruing at 10%, payable in 10 years.
<PAGE>
  The Company's future liquidity  requirements are expected to consist primarily
of  capital  expenditures  and  working  capital  requirements.   The  Company's
liquidity  requirements are expected to be financed from operating cash flow and
the proposed financing upon emerging from bankruptcy;  however, no assurance can
be given that such financing will be available or sufficient. The opinion of the
Company's  independent public accountants  covering the financial statements for
the year ended September 27, 1997 included a paragraph questioning the Company's
ability to continue as a going concern.

  All  statements  other than  statements  of  historical  fact included in this
release regarding the Company's  financial  position,  business strategy and the
plans and objectives of the Company's management for the future operations,  are
forward-looking  statements.  When  used  herein,  words  such as  "anticipate,"
"believe," "estimate," "expect," intend" and similar expressions, as they relate
to the Company or its  management,  identify  forward-looking  statements.  Such
forward-looking statements are based on the beliefs of the Company's management,
as well  as  assumptions  made by and  information  currently  available  to the
Company's  management.   Actual  results  could  differ  materially  from  those
contemplated by the  forward-looking  statements as a result of certain factors,
including but not limited to, competitive factors and pricing pressures, changes
in legal and  regulatory  requirements,  technological  change or  difficulties,
product development risks,  commercialization and trade difficulties and general
economic  conditions.  Such statements  reflect the current views of the Company
with  respect  to future  events  and are  subject  to these  and  other  risks,
uncertainties and assumptions relating to the operations, results of operations,
growth  strategy and liquidity of the Company.  All subsequent  written and oral
forward-looking  statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by this paragraph.


Effects of Inflation
--------------------
   The Company  believes  that the  relatively  moderate  rates of  inflation in
recent years have not had a significant impact on its sales and profitability.
<PAGE>

                    ONEITA INDUSTRIES, INC. AND SUBSIDIARIES
                    ----------------------------------------
                           PART II - OTHER INFORMATION
                           ---------------------------

Item 1 Legal Proceedings
       -----------------
       None

Item 2 Changes in Securities
       ---------------------
       None

Item 3 Defaults upon Senior Securities
       -------------------------------   
       None

Item 4 Submission of Matters to a Vote of Security Holders
       ---------------------------------------------------
       None

Item 5 Other Information
       -----------------
       None

Item 6 Exhibits and Reports on Form 8-K
       --------------------------------   
       (a) Exhibits

          2.1  Proposed  Plan of  Reorganization  (incorporated  by reference to
               Exhibit 4.2 to Form 8-K dated January 23, 1998)
          4.1  Interim Order Authorizing Debtor to Obtain Secured  Superpriority
               Post-petition  Financing,  Scheduling a Hearing to Consider Final
               Authorization to Obtain Secured Post-petition  Financing Pursuant
               to 11  U.  S.  C.  Section  364  (c)  and  Bankruptcy  Rule  4001
               (incorporated  by  reference  to  Exhibit  4.1 to Form 8-K  dated
               January 23, 1998)
          4.2  Loan and Security Agreement
          4.3  Subordinated Note
          4.4  Senior Secured Note Purchase Agreement
          4.5  Intercreditor Agreement
         27    Financial Data Schedule

       (b) Reports on Form 8-K filed during this quarterly period.

               Report dated January 23, 1998 with respect to Item 3 and Item 5

<PAGE>
SIGNATURE
---------

     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.

                              ONEITA INDUSTRIES, INC.



                         By: /s/ C. Michael Billingsley
                            ---------------------------  
                            C. Michael Billingsley
                            President and Chief Executive Officer



                         By: /s/ William H. Boyd
                            --------------------  
                            William H. Boyd
                            Vice President and Treasurer
                            (Principal Accounting Officer)



Date:  February 12, 1998