EXHIBIT 25
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                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549
 
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                                    FORM T-1
 
                            STATEMENT OF ELIGIBILITY
            UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, OF A
                    CORPORATION DESIGNATED TO ACT AS TRUSTEE
                      CHECK IF AN APPLICATION TO DETERMINE
                      ELIGIBILITY OF A TRUSTEE PURSUANT TO
                              SECTION 305 (B) (2)
 
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                       IBJ SCHRODER BANK & TRUST COMPANY
 
              (Exact name of trustee as specified in its charter)
 

                                            
                  NEW YORK                                      13-5375195
           (State of Incorporation                           (I.R.S. Employer
        if not a U.S. national bank)                        Identification No.)
 
    ONE STATE STREET, NEW YORK, NEW YORK                           10004
  (Address of principal executive offices)                      (Zip code)

 
                           MAX VOLMAR, VICE PRESIDENT
                       IBJ SCHRODER BANK & TRUST COMPANY
                                ONE STATE STREET
                            NEW YORK, NEW YORK 10004
                                 (212) 858-2000
 
           (Name, Address and Telephone Number of Agent for Service)
 
                    LIFESTYLE FURNISHINGS INTERNATIONAL LTD.
              (Exact name of obligor as specified in its charter)
 
                  DELAWARE                                      56-1977928
          (State or jurisdiction of                          (I.R.S. Employer
       incorporation or organization)                       Identification No.)
 
            1300 NATIONAL HIGHWAY                                  27360
               THOMASVILLE, NC                                  (Zip code)
   (Address of principal executive office)
 
                  10- 7/8% Senior Subordinated Notes due 2006
                        (Title of Indenture Securities)
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ITEM 1. GENERAL INFORMATION
 
        Furnish the following information as to the trustee:
 
        (a) Name and address of each examining or supervising authority to which
    it is subject.
 
New York State Banking Department
Two Rector Street
New York, New York
 
Federal Deposit Insurance Corporation
Washington, D.C.
 
Federal Reserve Bank of New York Second District
33 Liberty Street
New York, New York
 
        (b) Whether it is authorized to exercise corporate trust powers.
 
       Yes
 
ITEM 2. AFFILIATIONS WITH THE OBLIGOR.
 
        If the obligor is an affiliate of the trustee, describe each such
    affiliation.
 
        The obligor is not an affiliate of the trustee.
 
ITEM 3. VOTING SECURITIES OF THE TRUSTEE.
 
        Furnish the following information as to each class of voting securities
    of the trustee:


                          AS OF SEPTEMBER 11, 1996
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          COL. A                                               COL. B
      TITLE OF CLASS                                     AMOUNT OUTSTANDING
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                               Not Applicable
 
ITEM 4. TRUSTEESHIPS UNDER OTHER INDENTURES.
 
        If the trustee is a trustee under another indenture under which any
    other securities, or certificates of interest or participation in any other
    securities, of the obligor are outstanding, furnish the following
    information:
 
        (a) Title of the securities outstanding under each such other indenture
 
                                 Not Applicable
 
        (b) A brief statement of the facts relied upon as a basis for the claim
    that no conflicting interest within the meaning of Section 310 (b) (1) of
    the Act arises as a result of the trusteeship under any such other
    indenture, including a statement as to how the indenture securities will
    rank as compared with the securities issued under such other indenture.
 
                                 Not Applicable
 
ITEM 5. INTERLOCKING DIRECTORATES AND SIMILAR RELATIONSHIPS WITH THE OBLIGOR OR
UNDERWRITERS.
 
        If the trustee or any of the directors or executive officers of the
    trustee is a director, officer, partner, employee, appointee, or
    representative of the obligor or of any underwriter for the obligor,
    identify each such person having any such connection and state the nature of
    each such connection.
 
                                 Not Applicable
 
                                       1

ITEM 6. VOTING SECURITIES OF THE TRUSTEE OWNED BY THE OBLIGOR OR ITS OFFICIALS.
 
        Furnish the following information as to the voting securities of the
    trustee owned beneficially by the obligor and each director, partner, and
    executive officer of the obligor:

                            AS OF SEPTEMBER 11, 1996
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                                                                COL. D
                                         COL. C           PERCENT OF VOTING
     COL. A             COL. B        AMOUNT OWNED    SECURITIES REPRESENTED BY
  NAME OF OWNER     TITLE OF CLASS    BENEFICIALLY      AMOUNT GIVEN IN COL. C
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                                 Not Applicable
 
ITEM 7. VOTING SECURITIES OF THE TRUSTEE OWNED BY UNDERWRITERS OR THEIR
OFFICIALS.
 
        Furnish the following information as to the voting securities of the
    trustee owned beneficially by each underwriter for the obligor and each
    director, partner and executive officer of each such underwriter:

                            AS OF SEPTEMBER 11, 1996
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                                                                COL. D
                                         COL. C           PERCENT OF VOTING
     COL. A             COL. B        AMOUNT OWNED    SECURITIES REPRESENTED BY
  NAME OF OWNER     TITLE OF CLASS    BENEFICIALLY      AMOUNT GIVEN IN COL. C
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                                 Not Applicable
 
ITEM 8. SECURITIES OF THE OBLIGOR OWNED OR HELD BY THE TRUSTEE
 
        Furnish the following information as to securities of the obligor owned
    beneficially or held as collateral security for obligations in default by
    the trustee:

                            AS OF SEPTEMBER 11, 1996
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                                         COL. C
                                      AMOUNT OWNED
                                      BENEFICIALLY
                                       OR HELD AS
                                       COLLATERAL               COL. D
                                      SECURITY FOR        PERCENT OF VOTING
     COL. A             COL. B         OBLIGATIONS    SECURITIES REPRESENTED BY
  NAME OF OWNER     TITLE OF CLASS     IN DEFAULT       AMOUNT GIVEN IN COL. C
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                                 Not Applicable
 
                                       2

ITEM 9. SECURITIES OF UNDERWRITERS OWNED OR HELD BY THE TRUSTEE.
 
        If the trustee owns beneficially or holds as collateral security for
    obligations in default any securities of an underwriter for the obligor,
    furnish the following information as to each class of securities of such
    underwriter any of which are so owned or held by the trustee:



                              AS OF SEPTEMBER 11, 1996
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                                        COL. C
                                     AMOUNT OWNED                   COL. D
  COL. A                       BENEFICIALLY OR HELD AS        PERCENT OF VOTING
 NAME OF         COL. B        COLLATERAL SECURITY FOR    SECURITIES REPRESENTED BY
   OWNER     TITLE OF CLASS     OBLIGATIONS IN DEFAULT      AMOUNT GIVEN IN COL. C
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                                   Not Applicable

 
ITEM 10. OWNERSHIP OR HOLDINGS BY THE TRUSTEE OF VOTING SECURITIES OF CERTAIN
AFFILIATES OR SECURITYHOLDERS OF THE OBLIGOR.
 
        If the trustee owns beneficially or holds as collateral security for
    obligations in default voting securities of a person who, to the knowledge
    of the trustee (1) owns 10 percent or more of the voting securities of the
    obligor or (2) is an affiliate, other than a subsidiary, of the obligor,
    furnish the following information as to the voting securities of such
    person:


                              AS OF SEPTEMBER 11, 1996
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                                        COL. C
                                     AMOUNT OWNED                   COL. D
  COL. A                       BENEFICIALLY OR HELD AS        PERCENT OF VOTING
 NAME OF         COL. B        COLLATERAL SECURITY FOR    SECURITIES REPRESENTED BY
   OWNER     TITLE OF CLASS     OBLIGATIONS IN DEFAULT      AMOUNT GIVEN IN COL. C
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                                   Not Applicable

 
ITEM 11. OWNERSHIP OR HOLDINGS BY THE TRUSTEE OF ANY SECURITIES OF A PERSON
OWNING 50 PERCENT OR MORE OF THE VOTING SECURITIES OF THE OBLIGOR.
 
        If the trustee owns beneficially or holds as collateral security for
    obligations in default any securities of a person who, to the knowledge of
    the trustee, owns 50 percent or more of the voting securities of the
    obligor, furnish the following information as to each class of securities of
    such any of which are so owned or held by the trustee:

              AS OF SEPTEMBER 11, 1996
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     COL. A
   NATURE OF              COL. B            COL. C
   INDEBTEDNESS     AMOUNT OUTSTANDING     DATE DUE
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                   Not Applicable
 
                                       3

ITEM 12. INDEBTEDNESS OF THE OBLIGOR TO THE TRUSTEE.
 
        Except as noted in the instructions, if the obligor is indebted to the
    trustee, furnish the following information:


                              AS OF SEPTEMBER 11, 1996
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                                        COL. C
                                     AMOUNT OWNED                   COL. D
  COL. A                       BENEFICIALLY OR HELD AS        PERCENT OF VOTING
 NAME OF         COL. B        COLLATERAL SECURITY FOR    SECURITIES REPRESENTED BY
   OWNER     TITLE OF CLASS     OBLIGATIONS IN DEFAULT      AMOUNT GIVEN IN COL. C
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                                   Not Applicable

 
ITEM 13. DEFAULTS BY THE OBLIGOR.
 
        (a) State whether there is or has been a default with respect to the
    securities under this indenture. Explain the nature of any such default.
 
                                 Not Applicable
 
        (b) If the trustee is a trustee under another indenture under which any
    other securities, or certificates of interest or participation in any other
    securities, of the obligor are outstanding, or is trustee for more than one
    outstanding series of securities under the indenture, state whether there
    has been a default under any such indenture or series, identify the
    indenture or series affected, and explain the nature of any such default.
 
                                 Not Applicable
 
ITEM 14. AFFILIATIONS WITH THE UNDERWRITERS
 
        If any underwriter is an affiliate of the trustee, describe each such
    affiliation.
 
                                 Not Applicable
 
ITEM 15. FOREIGN TRUSTEES.
 
        Identify the order or rule pursuant to which the foreign trustee is
    authorized to act as sole trustee under indentures qualified or to be
    qualified under the Act.
 
                                 Not Applicable
 
ITEM 16. LIST OF EXHIBITS.
 
        List below all exhibits filed as part of this statement of eligibility.
 

       
 *1.      A copy of the Charter of IBJ Schroder Bank & Trust Company as amended to date. (See
          Exhibit 1A to Form T-1, Securities and Exchange Commission File No. 22-18460).
 
 *2.      A copy of the Certificate of Authority of the Trustee to Commence Business (Included
          in Exhibit I above).
 
 *3.      A copy of the Authorization of the Trustee, as amended to date (See Exhibit 4 to
          Form T-1, Securities and Exchange Commission File No. 22-19146).
 
 *4.      A copy of the existing By-Laws of the Trustee, as amended to date (See Exhibit 4 to
          Form T-1, Securities and Exchange Commission File No. 22-19146).

 
                                       4


       
 5.       A copy of each Indenture referred to in Item 4, if the Obligor is in default. Not
          Applicable.
 
 6.       The consent of the United States institutional trustee required by Section 321(b) of
          the Act.
 
 7.       A copy of the latest report of condition of the trustee published pursuant to law or
          the requirements of its supervising or examining authority.

 
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* The Exhibits thus designated are incorporated herein by reference as exhibits
  hereto. Following the description of such Exhibits is a reference to the copy
  of the Exhibit heretofore filed with the Securities and Exchange Commission,
  to which there have been no amendments or changes.
 
                                      NOTE
 
    In answering any item in this Statement of Eligibility which relates to
matters peculiarly within the knowledge of the obligor and its directors or
officers, the trustee has relied upon information furnished to it by the
obligor.
 
    Inasmuch as this Form T-1 is filed prior to the ascertainment by the trustee
of all facts on which to base responsive answers to Item 2, the answer to said
Item are based on incomplete information.
 
    Item 2, may, however, be considered as correct unless amended by an
amendment to this Form T-1.
 
    Pursuant to General Instruction B, the trustee has responded to Items 1, 2
and 16 of this form since to the best knowledge of the trustee as indicated in
Item 13, the obligor is not in default under any indenture under which the
applicant is trustee.
 
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                                   SIGNATURE
 
    Pursuant to the requirements of the Trust Indenture Act of 1939, as amended,
the trustee, IBJ Schroder Bank & Trust Company, a corporation organized and
existing under the laws of the State of New York, has duly caused this statement
of eligibility and qualification to be signed on its behalf by the undersigned,
thereunto duly authorized, all in the City of New York, and State of New York,
on the 11th day of September, 1996.
 
                                          IBJ SCHRODER BANK & TRUST COMPANY
 
                                          By:      /s/ MAX VOLMAR
                                                 --------------------------
                                                     Max Volmar
                                                   Vice President

                                   EXHIBIT 6
 
                               CONSENT OF TRUSTEE
 
    Pursuant to the requirements of Section 321(b) of the Trust Indenture Act of
1939, as amended, in connection with the proposed issue of Lifestyle Furnishings
International Ltd., we hereby consent that reports of examinations by Federal,
State, Territorial, or District authorities may be furnished by such authorities
to the Securities and Exchange Commission upon request therefor.
 


                                          IBJ SCHRODER BANK & TRUST COMPANY
 
                                          By            /s/ MAX VOLMAR
                                             ...................................
                                                         Max Volmar
                                                       Vice President
 
Dated: September 11, 1996

                                                                       EXHIBIT 7
 
                      CONSOLIDATED REPORT OF CONDITION OF
                       IBJ SCHRODER BANK & TRUST COMPANY
                             OF NEW YORK, NEW YORK
                     AND FOREIGN AND DOMESTIC SUBSIDIARIES
                           REPORT AS OF JUNE 30, 1996
 


                                                                                   DOLLAR AMOUNTS
                                                                                    IN THOUSANDS
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ASSETS
Cash and balance due from depository institutions:
  Noninterest-bearing balances and currency and coin..........                       $   39,834
  Interest-bearing balances...................................                       $  236,748
 
Securities: Held to Maturity..................................                       $  173,034
Available-for-sale............................................                       $   35,882
 
Federal funds sold and securities purchased under agreements
to resell in domestic offices of the bank and of its Edge and
Agreement subsidiaries and in IBFs:
  Federal Funds sold..........................................                       $   36,968
  Securities purchased under agreements to resell.............                       $      -0-
 
Loans and lease financing receivables:
  Loans and leases, net of unearned income....................     $1,668,191
  LESS: Allowance for loan and lease losses...................     $   54,288
  LESS: Allocated transfer risk reserve.......................     $      -0-
  Loans and leases, net of unearned income, allowance, and
   reserve....................................................                       $1,613,903
 
Assets held in trading accounts...............................                       $      500
 
Premises and fixed assets.....................................                       $    7,413
 
Other real estate owned.......................................                       $      397
 
Investments in unconsolidated subsidiaries and associated
 companies....................................................                       $      -0-
 
Customers' liability to this bank on acceptances
 outstanding..................................................                       $      223
 
Intangible assets.............................................                       $      -0-
 
Other assets..................................................                       $   55,007
 
      TOTAL ASSETS............................................                       $2,199,909

 
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                                                                                   DOLLAR AMOUNTS
                                                                                    IN THOUSANDS
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LIABILITIES
 
Deposits:
  In domestic offices.........................................                       $  652,676
    Noninterest-bearing.......................................     $  278,082
    Interest-bearing..........................................     $  374,594
 
  In foreign offices, Edge and Agreement subsidiaries, and
   IBFs.......................................................                       $  893,475
    Noninterest-bearing.......................................     $   15,577
    Interest-bearing..........................................     $  877,898
 
Federal funds purchased and securities sold under agreements
to repurchase in domestic offices of the bank and of its Edge
and Agreement subsidiaries, and in IBFs:
  Federal Funds purchased.....................................                       $  212,000
  Securities sold under agreements to repurchase..............                       $      -0-
 
Demand notes issued to the U.S. Treasury......................                       $   48,606
 
Trading Liabilities...........................................                       $      293
 
Other borrowed money:
  a) With original maturity of one year or less...............                       $  102,049
  b) With original maturity of more than one year.............                       $    3,000
 
Mortgage indebtedness and obligations under capitalized
 leases.......................................................                       $      -0-
 
Bank's liability on acceptances executed and outstanding......                       $      223
 
Subordinated notes and debentures.............................                       $      -0-
 
Other liabilities.............................................                       $   74,608
 
      TOTAL LIABILITIES.......................................                       $1,986,930
 
Limited life preferred stock and related surplus..............                       $      -0-
 
EQUITY CAPITAL
 
Perpetual preferred stock.....................................                       $      -0-
 
Common Stock..................................................                       $   29,649
 
Surplus.......................................................                       $  217,008
 
Undivided profits and capital reserves........................                       $  (34,414)
Plus: Net unrealized gains (losses) on marketable equity
 securities...................................................                       $      736
 
Cumulative foreign currency translation adjustments...........                       $      -0-
 
      TOTAL EQUITY CAPITAL....................................                       $  212,979
 
      TOTAL LIABILITIES AND EQUITY CAPITAL....................                       $2,199,909

 
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