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 Exchange Act of 1934

Date of Report (Date of earliest event reported): December 22, 2011

Orchard Supply Hardware Stores Corporation

(Exact name of registrant as specified in its charter)

(408) 281-3500

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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:

This Current Report on Form 8-K is filed by Orchard Supply Hardware Stores Corporation, a Delaware corporation (the “Company”), in connection with the matters described herein.

Amendment and Restatement of the Senior Secured Term Loan Agreement

On December 22, 2011, the Company, Orchard Supply Hardware, LLC, a subsidiary of the Company (the “Borrower”), and certain subsidiaries of the Borrower entered into an amendment and restatement agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”), as Administrative Agent and Collateral Agent, and the lenders party thereto (the “Term Loan Amendment”), amending and restating the Senior Secured Term Loan Agreement, dated as of December 21, 2006 (as amended on January 28, 2011, the “Term Loan Agreement,” and as amended by the Term Loan Amendment, the “Amended and Restated Term Loan Agreement”) by and among the Company, the Borrower, certain other subsidiaries of the Borrower, JPMorgan and the lenders party thereto. Pursuant to the Term Loan Agreement, the lenders thereunder extended term loans to the Borrower in an aggregate principal amount of $200 million under a seven-year term loan facility. The obligations of the Borrower under the Term Loan Agreement were and under the Amended and Restated Term Loan Agreement are guaranteed by the Company and certain of the Borrower’s subsidiaries and are secured by (i) a first priority pledge of the stock of certain of their respective subsidiaries and the Borrower’s and guarantors’ equipment, real property and intangibles relating to the foregoing and (ii) a second priority lien on substantially all of the Borrower’s and guarantors’ other property pursuant to, in the case of pledged personal property, a Pledge and Security Agreement, dated as of December 21, 2006 between the Company, the Borrower, certain subsidiaries of the Borrower and JPMorgan, as Collateral Agent.

The Term Loan Agreement was amended and restated to, among other things:

Amendment to the Second Amended and Restated Senior Secured Credit Agreement

Effective December 22, 2011, the Company, the Borrower, certain subsidiaries of the Borrower, the lenders party thereto, and Wells Fargo Bank, National Association (“Wells Fargo”), as ABL Administrative Agent and Collateral Agent, entered into a Consent and First Amendment (the “ABL Amendment”) to the Second Amended and Restated Senior Secured Credit Agreement, dated as of January 29, 2010 (the “ABL Credit Agreement”), among the Company, the Borrower, certain subsidiaries of the Borrower, the lenders party thereto and Wells Fargo Retail Finance, LLC, as ABL Administrative Agent and Collateral Agent, in order to consent to the increased pricing applicable to the Extended Term Loans under the Term Loan Amendment.

The ABL Amendment also amended the ABL Credit Agreement to, among other things:

Amendment to the Real Estate Term Loan Agreement

On December 27, 2011, OSH Properties, certain lenders party thereto and Wells Fargo, as Administrative Agent, entered into an amendment (the “Real Estate Term Loan Amendment”) to the Real Estate Term Loan Agreement, dated as of October 27, 2010 (as amended on December 19, 2011, the “Real Estate Term Loan Agreement”), among OSH Properties, certain lenders party thereto and Wells Fargo, as Administrative Agent.

The Real Estate Term Loan Amendment amended the Real Estate Term Loan Agreement to, among other things:

Amendment to the Real Estate Master Lease

On October 27, 2010, in connection with the Real Estate Term Loan Agreement, OSH Properties (the “Landlord”) and Orchard Supply Hardware LLC (the “Tenant”) entered into a Lease Agreement (the “Real Estate Master Lease”) whereby the Tenant leased each of the properties secured by the Real Estate Term Loan Agreement from the Landlord. The Real Estate Master Lease requires Tenant to pay a market-rate fixed rent amount and otherwise comply with standard commercial leasing restrictions. The Real Estate Master Lease also requires Tenant to comply with certain affirmative and negative covenants that substantially mirror the covenants found in the Amended and Restated Term Loan Agreement and the ABL Credit Agreement. On December 27, 2011, Tenant and Landlord entered into an amendment (the “Lease Amendment”) to the Real Estate Master Lease to conform to the Amended and Restated Term Loan Agreement and the ABL Amendment.

The Real Estate Master Lease was amended to, among other things:

Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Term Loan Amendment, Amended and Restated Term Loan Agreement, ABL Amendment, ABL Credit Agreement, Real Estate Term Loan Amendment, Real Estate Term Loan Agreement, Real Estate Master Lease and Lease Amendment, as applicable.

The foregoing descriptions of the Term Loan Amendment, ABL Amendment, Real Estate Term Loan Amendment, Real Estate Master Lease and Lease Amendment do not purport to be complete and are qualified in their entirety by reference to such agreements, which are attached hereto as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5, respectively, and incorporated herein by reference.

The information set forth under Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.

The Company is still evaluating the impact that the amendments to the above-referenced financing arrangements and the recent sale-leaseback transactions will have on its consolidated financial statements. While the foregoing estimates may change, the Company anticipates that such transactions will impact its accounting as described in this Item 8.01.

The Company has sought to improve its financial position by renegotiating its financing arrangements, as described above, and by monetizing additional owned store properties, through asset sales and/or sale-leaseback transactions, in order to strengthen its ability to remain in compliance with the covenants under the foregoing financial arrangements while continuing to follow its current business plan, which includes plans for store expansion.

During the 2011 third and fourth fiscal quarters, the Company entered into sale-leaseback transactions with respect to five properties, all in California: the Tracy distribution center, the Hollywood store, the Pismo Beach store and two San Jose stores. Total proceeds of the sale-leaseback transactions were $57.8 million, and this was used to pay down the Real Estate Term Loan by $21.6 million and the Senior Secured Term Loan by $34.4 million. In connection with the paying down of amounts outstanding under its financing arrangements, the Company was able to renegotiate those financing arrangements as described above. The Company plans to remodel the Pismo Beach and the two San Jose stores and expects to receive $9.0 million in tenant improvement allowance to pay for a substantial portion of the remodeling. After the remodeling of the Pismo Beach and the two San Jose stores is complete, the Company expects to be able to conclude for accounting purposes the sale-leaseback transactions for those three properties.

The impact on the Company of the amendments to the financing arrangements, the sale-leaseback transactions and the Company’s transition to an independent, publicly traded company is expected to include:

Forward-Looking Statements

This Current Report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projects as well as the current beliefs and assumptions of our management. Words such as “outlook”, “believes”, “expects”, “appears”, “may”, “will”, “should”, “anticipates”, or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled “Risk Factors” in the Company’s reports filed with the Securities and Exchange Commission. Many of such factors relate to events and circumstances that are beyond the Company’s control. Shareholders and prospective investors should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

(d) Exhibits

The following documents are attached as an exhibit to this Current Report on Form 8-K:

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX