Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer Listing.

On July 18, 2012, Sport Chalet, Inc. (the "Company") received a letter from the NASDAQ Stock Market ("Nasdaq") Staff notifying the Company that it has regained compliance with the minimum Market Value of Publicly Held Shares ("MVPHS") requirement for continued listing set forth in Rule 5460(a)(2) of the Nasdaq Listing Rules (the "Listing Rules"), as its Class B Common Stock has achieved a MVPHS of $1 million or greater for ten consecutive business days.

On May 17, 2012, Nasdaq Staff notified the Company that its Class B Common Stock failed to maintain a minimum MVPHS of $1 million over the previous 30 consecutive business days as required by the Listing Rules. The Staff also notified the Company that it had a period of 180 calendar days in which to regain compliance. In a letter dated July 18, 2012, the Staff informed the Company that it had determined that the minimum MVPHS of the Company's Class B Common Stock has been at $1 million or greater for ten consecutive business days from July 3, 2012 to July 17, 2012. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5460(a)(2).

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