-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Ub/TcpNJbrocOPpW+cPIn6c3RlUFmSOzMln/6iaEOMj/ppusC/k1B8TXFQOdh7Aw
 DpSc5OZCDsg5D01tOdZfgQ==

<SEC-DOCUMENT>0001005477-04-003249.txt : 20040913
<SEC-HEADER>0001005477-04-003249.hdr.sgml : 20040913
<ACCEPTANCE-DATETIME>20040913170956
ACCESSION NUMBER:		0001005477-04-003249
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040913
FILED AS OF DATE:		20040913
DATE AS OF CHANGE:		20040913

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RAG SHOPS INC
		CENTRAL INDEX KEY:			0000874385
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-HOBBY, TOY & GAME SHOPS [5945]
		IRS NUMBER:				510333503
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	BUSINESS ADDRESS:	
		STREET 1:		111 WAGARAW RD
		CITY:			HAWTHORNE
		STATE:			NJ
		ZIP:			07506
		BUSINESS PHONE:		9734231303

	MAIL ADDRESS:	
		STREET 1:		111 WAGARAW RD
		CITY:			HAWTHORNE
		STATE:			NJ
		ZIP:			07506

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Crafts Retail Holding Corp.
		CENTRAL INDEX KEY:			0001302535
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19194
		FILM NUMBER:		041028057

	BUSINESS ADDRESS:	
		STREET 1:		5200 TOWN CENTER CIRCLE, SUITE 470
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33486
		BUSINESS PHONE:		561-394-0550

	MAIL ADDRESS:	
		STREET 1:		5200 TOWN CENTER CIRCLE, SUITE 470
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33486
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 3
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2004-09-13</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000874385</issuerCik>
        <issuerName>RAG SHOPS INC</issuerName>
        <issuerTradingSymbol>RAGS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001302535</rptOwnerCik>
            <rptOwnerName>Crafts Retail Holding Corp.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>5200 TOWN CENTER CIRCLE, SUITE 470</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BOCA RATON</rptOwnerCity>
            <rptOwnerState>FL</rptOwnerState>
            <rptOwnerZipCode>33486</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2671199</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Crafts Retail Holding Corp. (&quot;Crafts Holding&quot;) owns 100% of the equity interest
of Crafts Retail Acquisition Corp. (&quot;Crafts Acquisition&quot;) which in turn owns
55.7% of the issuer. As a result, Crafts Retail may be deemed to have indirect
beneficial ownership of the 2,671,199 shares of Common Stock of the issuer owned
directly by Crafts Acquisition. Crafts Holding expressly disclaims beneficial
ownership of any shares of Common Stock of the issuer.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Michael Fieldstone, Vice President</signatureName>
        <signatureDate>2004-09-13</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----