Sport Chalet, Inc. said it was evaluating strategic alternatives, including raising additional capital and amending or replacing its current credit facility. This includes retaining Wedbush Morgan Securities as its financial adviser in this process.

The Los Angeles-based company also said it had amended its credit agreement with Bank of America for the second time, under which the bank would refrain from exercising its rights on certain defaults by the company until March 2 instead of Jan. 31.

Sport Chalet is scheduled to post third-quarter results on Feb. 11.

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.

As reported, Sport Chalet Inc. on January 9 amended its credit agreement with lenders led by Bank of America to loosen its terms, according to a filing with the Securities & Exchange Commission. The filing noted that as of December 31, an event of default had occurred under the Loan Agreement due to the failure of the company to maintain a “Fixed Charge Coverage Ratio.”