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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
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        AND EXCHANGE COMMISSION</strong></font></div>
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        D.C. 20549</strong></font></div>
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        8-K</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the Securities Exch</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>nge
        Act of 1934 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of the earliest event reported): September 30, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong>SPORT
        CHALET, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter) </font></div>
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              </td>
              <td valign="bottom" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>0-20736</strong></font></div>
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              <td valign="bottom" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>95-4390071</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction </font></div>
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                  incorporation or organization)</font></div>
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                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                  Number)</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                  Employer </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  No.)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
        Sport
        Chalet Drive, La Canada, CA 91011</font></div>
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        of principal executive offices) (Zip Code) </font></div>
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        949-5300</font></div>
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        telephone number, including area code) </font></div>
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        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:</font></div>
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</font>Written
        communications
        pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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</font>Soliciting
        material pursuant to Rule 14a-12 under the
        Exchange Act (17 CFR 240.14a-12)</font></div>
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</font>Pre-commencement
        communications pursuant to Rule
        14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div>
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</font>Pre-commencement
        communications pursuant to Rule
        13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        1.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
        into a Material Definitive Agreement.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tax
        Indemnification Agreement</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September&#160;30, 2005, Sport Chalet, Inc. (the "Company") entered into
        a Tax
        Indemnification Agreement (the "Indemnification Agreement") with Norbert
        Olberz
        and Irene Olberz, both individually and in their capacities as the trustees
        of
        The Olberz Family Trust (collectively, "Olberz"), and Craig L. Levra, Chairman
        and Chief Executive Officer of the Company, and Howard K. Kaminsky, Chief
        Financial Officer of the Company (collectively, the Indemnitors"). A copy
        of the
        Tax Indemnification Agreement is attached as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
        99.1</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to this
        Report.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        Indemnification Agreement, each of the Indemnitors has agreed to indemnify
        and
        hold harmless Olberz from any federal, state or local taxes (plus reasonable
        legal fees and expenses) incurred by Olberz in connection with the transfer
        to
        that Indemnitor of shares of Class B Common Stock described in Item 5.01.
        Such
        taxes include any gift taxes, transfer taxes, income taxes (including
        withholding of income taxes) and payroll taxes (such as FICA, FUTA, SDI and
        SUI)
        and any penalties or interest on any such taxes. Each Indemnitor's liability
        under the Indemnification Agreement is limited to the value of the shares
        of
        Class B Common Stock pledged by him under the Pledge Agreement described
        below.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
        Pledge Agreement</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September&#160;30, 2005, the Company entered into a Stock Pledge Agreement
        (the
        "Pledge Agreement") with Olberz and the Indemnitors. A copy of the Pledge
        Agreement is attached as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
        99.2</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to this
        Report.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        Pledge Agreement, each of the Indemnitors has pledged, and granted a security
        interest in, certain shares of Class B Common Stock to Olberz to secure that
        Indemnitor's obligations to Olberz under the Indemnification Agreement. Each
        of
        the Indemnitors may pledge and grant a security interest in the collateral
        to
        any lender to secure the payment of any indebtedness of the Indemnitor to
        that
        lender, and such pledge and security interest may be senior in priority to
        the
        pledge and security interest granted to Olberz under the Pledge Agreement.
        Messrs. Levra and Kaminsky have pledged under the Pledge Agreement 342,947
        shares and 114,316 shares, respectively, of Class B Common Stock, which,
        as of
        the date of this Report, represent 17.6% and 5.9%, respectively, of the Class
        B
        Common Stock and 13.1% and 4.4%, respectively, of the combined voting power
        of
        the Class A Common Stock and the Class B Common Stock (in each case computed
        after giving effect to the conversion or exercise of all outstanding options,
        warrants and convertible securities).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        summary of the Indemnification Agreement and the Pledge Agreement set forth
        above should be read in conjunction with, and is qualified in its entirety
        by,
        the full text of these agreements attached as exhibits to this
        Report.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amendment
        to Business Loan Agreement</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 30, 2005, the Company entered into Amendment No. 6 (the "Amendment")
        to the Business Loan Agreement between the Company and Bank of America, N.A.
        A
        copy of the Amendment is attached to this Report as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit
        99.4</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Amendment (i) extends the term of the credit facility to September 30, 2007,
        (ii) decreases the interest rate from prime plus 0.25% to prime, (iii) decreases
        the Short Term Fixed Rate, Offshore Rate and Libor Rate from plus 1.75% to
        plus
        1.00% and (iv) amends the fixed charge coverage ratio and the Company's
        covenants regarding capital expenditures and notification of lawsuits and
        contingent liabilities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        summary of the Amendment set forth above should be read in conjunction with,
        and
        is qualified in its entirety by, the full text of this agreement attached
        as an
        exhibit to this Report.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.01.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Changes
        in Control of Registrant.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transfer
        of Class B Common Stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September&#160;30, 2005, The Olberz Family Trust (the "Trust") transferred
        (the
        "Transfer") to Messrs. Levra and Kaminsky 730,613 shares and 243,537 shares,
        respectively, of Class B Common Stock (collectively, the "Shares"). As a
        result
        of the Transfer, Messrs. Levra and Kaminsky owned immediately after the Transfer
        42.5 % and 15.6 %, respectively, of the Class B Common Stock and 32.6% and
        12.3%, respectively, of the combined voting power of the Class A Common Stock
        and the Class B Common Stock (in each case computed after giving effect to
        the
        conversion or exercise of all outstanding options, warrants and convertible
        securities). At the 2005 annual meeting of stockholders, the stockholders
        of the
        Company approved the Transfer.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Because
        the Transfer is among the Company's majority stockholder and officers of
        the
        Company, applicable financial accounting and tax rules and regulations require
        the Company to treat the Transfer as the contribution of the Shares to the
        Company's capital and the subsequent issuance of the Shares by the Company
        to
        Messrs. Levra and Kaminsky. As a result, the Company has recorded as
        compensation expense a one-time charge equal to the price of the Class B
        Common
        Stock at the time of the Transfer times the number of shares of Class B Common
        Stock transferred. The Company will not bear any income tax liability as
        a
        result of the Transfer. Messrs. Levra and Kaminsky have paid all applicable
        income taxes incurred by them as a result of the Transfer, estimated to be
        approximately 43.5% of the value of the Shares on the date of transfer. Such
        payments have been made in a manner consistent with Section 402 of the
        Sarbanes-Oxley Act of 2002. Under Section 162(m) of the Internal Revenue
        Code,
        the deductibility of the imputed compensation associated with the Transfer
        will
        be limited. The compensation expense charge was approximately $ 7.6 million
        after income taxes, or $ 0.57 per share on currently outstanding shares,
        in the
        quarterly period ended September&#160;30, 2005. The Company's tax savings,
        although limited by Section 162(m), were approximately $697,000 and were
        included in the after income tax charge.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
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        a
        description of certain other potential advantages, disadvantages and other
        effects of the Transfer, see the definitive proxy statement relating to the
        2005
        annual meeting of stockholders filed with the Securities and Exchange Commission
        (the "SEC") on September&#160;1, 2005.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        7.01.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Regulation
        FD Disclosure.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 30, 2005, the Company issued a press release announcing that the
        Company had paid a stock dividend of seven shares of Class A Common Stock
        for
        each share of Class B Common Stock outstanding on the record date of September
        22, 2005. A copy of the press release is attached as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit&#160;99.3</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to this
        Report.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        information in this Item 7.01 and the exhibit attached hereto shall not be
        deemed "filed" for the purpose of Section 18 of the Securities Exchange Act
        of
        1934, nor shall it be deemed incorporated by reference in any filing under
        the
        Securities Act of 1933 or the Securities Exchange Act of 1934, except as
        shall
        be expressly set forth by specific reference in such filing. The furnishing
        of
        the information in this Item 7.01 is not intended to, and does not, constitute
        a
        representation that such furnishing is required by Regulation FD or that
        the
        information this Report contains is material investor information that is
        not
        otherwise publicly available. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Other
        Events.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Termination
        of Option Agreement</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December&#160;20, 2002, Norbert Olberz and Irene Olberz, as co-trustee
        of The
        Olberz Family Trust (the "Trust"), granted to SC Option, LLC, a newly formed
        California limited liability company (the "LLC"), an option (the "Option")
        to
        purchase, under certain circumstances, all of the shares of the Company's
        common
        stock held by the Trust. The members of the LLC are the Company's executive
        officers. The Option is exercisable for 365&#160;days from the date of
        the death
        of Norbert Olberz, at an exercise price equal to the market price on the
        date of
        his death. The LLC and the Trust entered into the Option to provide for an
        orderly transition of control of the Company upon the death of Norbert Olberz.
        For a more complete description of the Option, see the Company's Current
        Report
        on Form&#160;8-K filed with the SEC on December&#160;23, 2002.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September&#160;30, 2005, the LLC and the Trust terminated the Option.
</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                  Number</u></font></div>
              </td>
              <td width="5%">&#160;</td>
              <td valign="bottom" width="75%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description
                  of Exhibit</u></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="20%">&#160;</td>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="75%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="20%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
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                  Indemnification Agreement dated as of September&#160;30, 2005,
                  among Sport
                  Chalet, Inc., Norbert Olberz and Irene Olberz, both individually
                  and as
                  trustees of The Olberz Family Trust, Craig L. Levra and Howard
                  K.
                  Kaminsky.</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="20%">&#160;</td>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="75%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="20%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
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              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="75%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                  Pledge Agreement dated as of September&#160;30, 2005, among Sport
                  Chalet,
                  Inc., Norbert Olberz and Irene Olberz, both individually and as
                  trustees
                  of The Olberz Family Trust, Craig L. Levra and Howard K.
                  Kaminsky.</font></div>
              </td>
            </tr>
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              <td valign="top" width="20%">&#160;</td>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="75%">&#160;</td>
            </tr>
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                  release dated September 30, 2005 entitled: Sport Chalet Executed
                  Stock
                  Dividend.</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="20%">&#160;</td>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="75%">&#160;</td>
            </tr>
            <tr>
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                  No. 6 to Business Loan Agreement between Sport Chalet, Inc. and
                  Bank of
                  America, N.A.</font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 hereunto
        duly authorized.</font></div>
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              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
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              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SPORT
                CHALET, INC.</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;October&#160;3,
                2005</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Howard
                K. Kaminsky</font></td>
            </tr>
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              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="2" width="80%"><font size="2">Howard
                K. Kaminsky</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                Vice President-Finance, Chief Financial Officer and
                Secretary</font></td>
            </tr>

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{"company-data": {"conformed-name": "SPORT CHALET INC", "cik": "0000892907", "assigned-sic": "5940", "irs-number": "954390071", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20736", "film-number": "051118535"}, "business-address": {"street1": "ONE SPORT CHALET DRIVE", "city": "LA CANADA", "state": "CA", "zip": "91101", "phone": "8187902717X256"}, "mail-address": {"street1": "ONE SPORT CHALET DRIVE", "city": "LA CANADA", "state": "CA", "zip": "91011"}}
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
FORM
        8-K
CURRENT
        REPORT
Pursuant
        to Section 13 or 15(d) of the Securities Exch
a
nge
        Act of 1934
Date
        of
        Report (Date of the earliest event reported): September 30, 2005
SPORT
        CHALET, INC.
(Exact
        name of registrant as specified in its charter)
Delaware
0-20736
95-4390071
(State
                  or other jurisdiction
of
                  incorporation or organization)
(Commission
File
                  Number)
(I.R.S.
                  Employer
Identification
                  No.)
One
        Sport
        Chalet Drive, La Canada, CA 91011
(Address
        of principal executive offices) (Zip Code)
(818)
        949-5300
(Registrant's
        telephone number, including area code)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:
o
Written
        communications
        pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
        material pursuant to Rule 14a-12 under the
        Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
        communications pursuant to Rule
        14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement
        communications pursuant to Rule
        13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
        1.01.
Entry
        into a Material Definitive Agreement.
Tax
        Indemnification Agreement
On
        September 30, 2005, Sport Chalet, Inc. (the "Company") entered into
        a Tax
        Indemnification Agreement (the "Indemnification Agreement") with Norbert
        Olberz
        and Irene Olberz, both individually and in their capacities as the trustees
        of
        The Olberz Family Trust (collectively, "Olberz"), and Craig L. Levra, Chairman
        and Chief Executive Officer of the Company, and Howard K. Kaminsky, Chief
        Financial Officer of the Company (collectively, the Indemnitors"). A copy
        of the
        Tax Indemnification Agreement is attached as
Exhibit
        99.1
to this
        Report.
Under
        the
        Indemnification Agreement, each of the Indemnitors has agreed to indemnify
        and
        hold harmless Olberz from any federal, state or local taxes (plus reasonable
        legal fees and expenses) incurred by Olberz in connection with the transfer
        to
        that Indemnitor of shares of Class B Common Stock described in Item 5.01.
        Such
        taxes include any gift taxes, transfer taxes, income taxes (including
        withholding of income taxes) and payroll taxes (such as FICA, FUTA, SDI and
        SUI)
        and any penalties or interest on any such taxes. Each Indemnitor's liability
        under the Indemnification Agreement is limited to the value of the shares
        of
        Class B Common Stock pledged by him under the Pledge Agreement described
        below.
Stock
        Pledge Agreement
On
        September 30, 2005, the Company entered into a Stock Pledge Agreement
        (the
        "Pledge Agreement") with Olberz and the Indemnitors. A copy of the Pledge
        Agreement is attached as
Exhibit
        99.2
to this
        Report.
Under
        the
        Pledge Agreement, each of the Indemnitors has pledged, and granted a security
        interest in, certain shares of Class B Common Stock to Olberz to secure that
        Indemnitor's obligations to Olberz under the Indemnification Agreement. Each
        of
        the Indemnitors may pledge and grant a security interest in the collateral
        to
        any lender to secure the payment of any indebtedness of the Indemnitor to
        that
        lender, and such pledge and security interest may be senior in priority to
        the
        pledge and security interest granted to Olberz under the Pledge Agreement.
        Messrs. Levra and Kaminsky have pledged under the Pledge Agreement 342,947
        shares and 114,316 shares, respectively, of Class B Common Stock, which,
        as of
        the date of this Report, represent 17.6% and 5.9%, respectively, of the Class
        B
        Common Stock and 13.1% and 4.4%, respectively, of the combined voting power
        of
        the Class A Common Stock and the Class B Common Stock (in each case computed
        after giving effect to the conversion or exercise of all outstanding options,
        warrants and convertible securities).
The
        summary of the Indemnification Agreement and the Pledge Agreement set forth
        above should be read in conjunction with, and is qualified in its entirety
        by,
        the full text of these agreements attached as exhibits to this
        Report.
Amendment
        to Business Loan Agreement
On
        September 30, 2005, the Company entered into Amendment No. 6 (the "Amendment")
        to the Business Loan Agreement between the Company and Bank of America, N.A.
        A
        copy of the Amendment is attached to this Report as
Exhibit
        99.4
.
The
        Amendment (i) extends the term of the credit facility to September 30, 2007,
        (ii) decreases the interest rate from prime plus 0.25% to prime, (iii) decreases
        the Short Term Fixed Rate, Offshore Rate and Libor Rate from plus 1.75% to
        plus
        1.00% and (iv) amends the fixed charge coverage ratio and the Company's
        covenants regarding capital expenditures and notification of lawsuits and
        contingent liabilities.
The
        summary of the Amendment set forth above should be read in conjunction with,
        and
        is qualified in its entirety by, the full text of this agreement attached
        as an
        exhibit to this Report.
Item
        5.01.
Changes
        in Control of Registrant.
Transfer
        of Class B Common Stock
On
        September 30, 2005, The Olberz Family Trust (the "Trust") transferred
        (the
        "Transfer") to Messrs. Levra and Kaminsky 730,613 shares and 243,537 shares,
        respectively, of Class B Common Stock (collectively, the "Shares"). As a
        result
        of the Transfer, Messrs. Levra and Kaminsky owned immediately after the Transfer
        42.5 % and 15.6 %, respectively, of the Class B Common Stock and 32.6% and
        12.3%, respectively, of the combined voting power of the Class A Common Stock
        and the Class B Common Stock (in each case computed after giving effect to
        the
        conversion or exercise of all outstanding options, warrants and convertible
        securities). At the 2005 annual meeting of stockholders, the stockholders
        of the
        Company approved the Transfer.
Because
        the Transfer is among the Company's majority stockholder and officers of
        the
        Company, applicable financial accounting and tax rules and regulations require
        the Company to treat the Transfer as the contribution of the Shares to the
        Company's capital and the subsequent issuance of the Shares by the Company
        to
        Messrs. Levra and Kaminsky. As a result, the Company has recorded as
        compensation expense a one-time charge equal to the price of the Class B
        Common
        Stock at the time of the Transfer times the number of shares of Class B Common
        Stock transferred. The Company will not bear any income tax liability as
        a
        result of the Transfer. Messrs. Levra and Kaminsky have paid all applicable
        income taxes incurred by them as a result of the Transfer, estimated to be
        approximately 43.5% of the value of the Shares on the date of transfer. Such
        payments have been made in a manner consistent with Section 402 of the
        Sarbanes-Oxley Act of 2002. Under Section 162(m) of the Internal Revenue
        Code,
        the deductibility of the imputed compensation associated with the Transfer
        will
        be limited. The compensation expense charge was approximately $ 7.6 million
        after income taxes, or $ 0.57 per share on currently outstanding shares,
        in the
        quarterly period ended September 30, 2005. The Company's tax savings,
        although limited by Section 162(m), were approximately $697,000 and were
        included in the after income tax charge.
For
        a
        description of certain other potential advantages, disadvantages and other
        effects of the Transfer, see the definitive proxy statement relating to the
        2005
        annual meeting of stockholders filed with the Securities and Exchange Commission
        (the "SEC") on September 1, 2005.
Item
        7.01.
Regulation
        FD Disclosure.
On
        September 30, 2005, the Company issued a press release announcing that the
        Company had paid a stock dividend of seven shares of Class A Common Stock
        for
        each share of Class B Common Stock outstanding on the record date of September
        22, 2005. A copy of the press release is attached as
Exhibit 99.3
to this
        Report.
The
        information in this Item 7.01 and the exhibit attached hereto shall not be
        deemed "filed" for the purpose of Section 18 of the Securities Exchange Act
        of
        1934, nor shall it be deemed incorporated by reference in any filing under
        the
        Securities Act of 1933 or the Securities Exchange Act of 1934, except as
        shall
        be expressly set forth by specific reference in such filing. The furnishing
        of
        the information in this Item 7.01 is not intended to, and does not, constitute
        a
        representation that such furnishing is required by Regulation FD or that
        the
        information this Report contains is material investor information that is
        not
        otherwise publicly available.
Item
        8.01
Other
        Events.
Termination
        of Option Agreement
On
        December 20, 2002, Norbert Olberz and Irene Olberz, as co-trustee
        of The
        Olberz Family Trust (the "Trust"), granted to SC Option, LLC, a newly formed
        California limited liability company (the "LLC"), an option (the "Option")
        to
        purchase, under certain circumstances, all of the shares of the Company's
        common
        stock held by the Trust. The members of the LLC are the Company's executive
        officers. The Option is exercisable for 365 days from the date of
        the death
        of Norbert Olberz, at an exercise price equal to the market price on the
        date of
        his death. The LLC and the Trust entered into the Option to provide for an
        orderly transition of control of the Company upon the death of Norbert Olberz.
        For a more complete description of the Option, see the Company's Current
        Report
        on Form 8-K filed with the SEC on December 23, 2002.
On
        September 30, 2005, the LLC and the Trust terminated the Option.
Item
        9.01
Financial
        Statements and Exhibits.
(a)
Not
        applicable.
(b)
Not
        applicable.
(c)
Exhibits.
Exhibit
                  Number
Description
                  of Exhibit
99.1
Tax
                  Indemnification Agreement dated as of September 30, 2005,
                  among Sport
                  Chalet, Inc., Norbert Olberz and Irene Olberz, both individually
                  and as
                  trustees of The Olberz Family Trust, Craig L. Levra and Howard
                  K.
                  Kaminsky.
99.2
Stock
                  Pledge Agreement dated as of September 30, 2005, among Sport
                  Chalet,
                  Inc., Norbert Olberz and Irene Olberz, both individually and as
                  trustees
                  of The Olberz Family Trust, Craig L. Levra and Howard K.
                  Kaminsky.
99.3
Press
                  release dated September 30, 2005 entitled: Sport Chalet Executed
                  Stock
                  Dividend.
99.4
Amendment
                  No. 6 to Business Loan Agreement between Sport Chalet, Inc. and
                  Bank of
                  America, N.A.
SIGNATURES
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 hereunto
        duly authorized.
SPORT
                CHALET, INC.
Date: October 3,
                2005
By:
/s/ Howard
                K. Kaminsky
Howard
                K. Kaminsky
Executive
                Vice President-Finance, Chief Financial Officer and
                Secretary