Sport Chalet Announces Review of Strategic Alternatives

ADMIN

• February 03 2009
• 1 comment

According to a press release, Sport Chalet announced that its board of directors is evaluating strategic alternatives to maximize shareholder value. The board has retained Wedbush Morgan Securities as its financial adviser in this process.

Here are the details:

Craig Levra, Chairman and CEO, said, “While we remain focused on meeting the challenges posed by the unprecedented macroeconomic difficulties in our core market areas of California, Nevada and Arizona, the Board is evaluating all alternatives to achieve maximum value for Sport Chalet shareholders.”

The review process may include such alternatives as raising additional capital, amending or replacing the Company’s current bank credit facility, further reducing expenses, or continuing to execute the Company’s current operating plan. No timetable has been set for completion of the review. The Company has no commitment or agreement with respect to any transaction, and there can be no assurance that any transaction will result. The Company does not plan to make any further comment on the review until the review is complete.

The Company also announced today that on January 29, 2009, Sport Chalet, Inc. and its wholly-owned subsidiary, Sport Chalet Value Services, LLC, entered into a Second Amendment to Amended and Restated Loan and Security Agreement and Limited Forbearance Agreement, with Bank of America, N.A. Under the Second Amendment, Bank of America, N.A. has agreed to extend the period during which it will forbear from exercising its rights with respect to certain defaults by the Company under its credit facility from January 31, 2009 until March 2, 2009.

The Company will release third quarter fiscal 2009 earnings results after the market closes on Wednesday, February 11, 2009.