ERNST & YOUNG LLP
                                  Suite 1700
                              500 Woodward Avenue
                         Detroit, Michigan 48226-3426


September 17, 1996



Board of Directors
Crowley, Milner and Company
Detroit, Michigan


Note B of the notes to the three month and six month unaudited condensed
financial statements of Crowley, Milner and Company included in its Form 10-Q
for the quarter ended August 3, 1996 describes a change in the method of
determining inventory cost from the last in, first out (LIFO) method to the
first in, first out (FIFO) method.  You have advised us that you believe
that the change is to a preferable method in your circumstances because the
FIFO method provides a better measure of the current value of the
inventories and the financial position of the Company given the minimum net
worth requirements mandated by a bond obligation, and the related emphasis
on the Company's equity placed by the Company's vendors and their factors.

There are no authoritative criteria for determining a "preferable" inventory
method based on the particular circumstances; however, we conclude that the
change in the method of determining inventory cost is to an acceptable
alternative method which, based on your business judgment to make this
change for the reasons cited above, is preferable in your circumstances.  We
have not conducted an audit in accordance with generally accepted auditing
standards of any financial statements of the Company as of any date or for
any period subsequent to February 3, 1996 and therefore we do not express
any opinion on any financial statements of Crowley, Milner and Company
subsequent to that date.

                             /S/ Ernst & Young LLP