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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 hjbZL9C1BqcIqligbVYn6g==

<SEC-DOCUMENT>0001144204-04-014337.txt : 20040913
<SEC-HEADER>0001144204-04-014337.hdr.sgml : 20040913
<ACCEPTANCE-DATETIME>20040913180654
ACCESSION NUMBER:		0001144204-04-014337
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040913
FILED AS OF DATE:		20040913
DATE AS OF CHANGE:		20040913

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			BERENZWEIG STANLEY
		CENTRAL INDEX KEY:			0001232796

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19194
		FILM NUMBER:		041028311

	BUSINESS ADDRESS:	
		STREET 1:		C/O RAG SHOPS INC
		STREET 2:		111 WAGARAW ROAD
		CITY:			HAWTHORNE
		STATE:			NJ
		ZIP:			07506
		BUSINESS PHONE:		9734231303

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
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>v06591_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

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

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001232796</rptOwnerCik>
            <rptOwnerName>BERENZWEIG STANLEY</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O RAG SHOPS INC</rptOwnerStreet1>
            <rptOwnerStreet2>111 WAGARAW ROAD</rptOwnerStreet2>
            <rptOwnerCity>HAWTHORNE</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07506</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>CEO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $.01 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2004-09-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>2201849</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.30</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>shares owned by spouse &amp; by the Stanley &amp; Doris Berenzweig Charitable Foundation, Inc.</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Includes 964, 042 shares owned by Doris Berenzweig, spouse, and 102,900 shares owned by the Stanley &amp; Doris Berenzweig
Charitable Foundation, Inc., of which Mr. &amp; Mrs. Berenzweig are trustees. Mr. &amp; Mrs. Berenzweig each disclaim beneficial
ownership of the shares held by the other and by the Foundation.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Stanley Berenzweig</signatureName>
        <signatureDate>2004-09-13</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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