SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


Mark One
               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          [X ]          THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended July 31, 2001
            --------------------------------------------------------

                                       OR

              TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          [ ]            THE SECURITIES EXCHANGE ACT OF 1934

         For the transition period from               to
                                        -------------    ------------

                         Commission file number 0-17263
                      -------------------------------------


                             CHAMPIONS SPORTS, INC.
                             ----------------------
             (Exact name of registrant as specified in its charter)


                        Delaware                     52-1401755
                        ---------------------------------------
                (State or other jurisdiction of    (I.R.S. Employer
                        organization)             Identification No.)

                Suite 214, 2420 Wilson Blvd., Arlington VA 22201
                ------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip code)

                                 (703) 526-0400
                                 --------------
              (Registrant's telephone number, including area code)


     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes x No

     As of September 13, 2001 the Registrant had a total of 8,514,459  shares of
common stock outstanding.





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                             CHAMPIONS SPORTS, Inc.
                                   FORM 10-QSB

                                      INDEX

                                                                      Page

Part I.  Financial Information

                  Item 1.  Financial Statements

                  Consolidated Balance Sheets as of
                    July 31, 2001(unaudited) and
                    April 30, 2001                                       3

                  Consolidated Statements of Operations:
                    Three months ended
                    July 31, 2001, and  July 31, 2000,
                            (unaudited)                                  4

                  Consolidated Statements of Cash Flows:
                    Three months ended July 31, 2001, and
                    July 31,2000 (unaudited)                             5

                  Notes to Consolidated Financial Statements             6

                  Item 2.  Management's Discussions and
                           Analysis of Financial Condition
                           and Results of Operations                     7

Part II. Other Information and Signatures

                  Item 4.  Submission of Matters to a Vote
                            of Security Holders                          9

                  Item 6.  Exhibits and Reports on Form 8-K              9

                  Signatures                                             10











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                     CHAMPIONS SPORTS, INC. AND SUBSIDIARIES
                           Consolidated Balance Sheets

                                     Assets


                                                         July 31,     April 30,
                                                          2001          2001
                                                          ----          ----

Current assets
   Cash and cash equivalents                              $437,670     451,650
   Accounts receivable - trade                                   -       1,326
   Inventories                                              15,177      25,056
   Prepaid expenses                                         22,416      17,411
                                                            ------      ------

Total current assets                                       475,263     495,443

Property and equipment
   Furniture and equipment                                  562,981     562,981
   Leasehold improvements                                   584,772     584,772
                                                            -------     -------
                                                          1,147,753   1,147,753
Accumulated depreciation and amortization                  (840,118)   (828,013)
                                                           --------    --------

                                                            307,635     319,740

Other assets
   Available for sale investments, at cost                   50,000      50,000
   Deposits                                                  11,052      11,052
                                                             ------      ------
Total assets                                               $843,950    $876,235
                                                           ========    ========


                      Liabilities and Stockholders' Equity

Current liabilities
   Accounts payable                                        $121,756    $126,240
   Dividend payable on preferred stock                      447,692     447,692
   Other accrued expenses                                    67,299      58,479
   Deferred revenue                                          64,625      64,625
   Current portion of deferred lease concession               4,363       4,363
   Current portion of capital lease obligation                9,839      10,283
                                                              -----      ------
   Total current liabilities                                715,574     711,682

Capital lease obligation, net of current portion                  -       1,940
Deferred lease concession, net of current portion            11,193      11,556
                                                             ------      ------
   Total liabilities                                        726,767     725,178
                                                            -------     -------



Stockholders' equity
   Preferred stock
     Series A, 12% Convertible Cumulative;
        $10 par value; preferred as to
        dividends and liquidation;
        56,075 shares authorized and 53,125 shares
        issued and outstanding for
        July 31 and April 30, 2001                          531,252     531,252
   Common stock, par value $.001 per share, 50,000,000
     shares authorized and 8,514,459 shares
     issued and outstanding for July 31
     and April 30, 2001                                       8,514       8,514
   Additional paid-in capital                             5,337,599   5,337,599
   Accumulated deficit                                   (5,760,182) (5,726,308)
                                                         ----------  ----------
   Total stockholders' equity                               117,183     151,057
                                                            -------     -------
Total liabilities and stockholders' equity                 $843,950    $876,235
                                                           ========    ========


See notes to consolidated financial statements





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                     CHAMPIONS SPORTS, INC. AND SUBSIDIARIES
                      Consolidated Statements of Operations
                       For the three months ended July 31

                                                      2001        2000
                                                      ----        ----

Revenue
  Food and beverage                                  $530,409    $503,391
  Merchandise, memorabilia,
   and consulting fees                                 18,108     101,211
  Interest income                                       3,429       6,822
  Other income                                          2,994       1,942
                                                        -----       -----
                                                      554,940     613,365


Costs and expenses
  Cost of food and beverage sales                     137,926     126,588
  Cost of merchandise and memorabilia                  34,793      33,143
  Restaurant payroll and related costs                185,819     173,988
  Restaurant occupancy costs                           64,464      52,318
  Other restaurant costs                               86,797      86,345
  General and administrative                           66,335      87,018
  Depreciation and amortization                        12,105      12,105
  Interest                                                578         674
                                                          ---         ---
                                                      588,817     572,179

Operating income (loss)
  before income tax expense                          (33,877)      41,186

Loss on restricted security held for sale                  -      (50,000)

Income tax expense                                         -           -


Net loss                                             (33,877)      (8,814)

Less preferred stock dividends                       (15,938)     (15,938)
                                                     -------      -------


Net income (loss) available to common
  stockholders                                     $(49,815)     $(24,752)
                                                   ========       ========


Basic earnings (loss) per share                     $(0.00)        $(0.00)
                                                    ======          ======


Earnings (loss) per common share - assuming
  dilution                                           $(0.00)       $(0.00)
                                                      ======        ======



See notes to consolidated financial statements


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                     CHAMPIONS SPORTS, INC. AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                      Increase (Decrease) in Cash and Cash
                                   Equivalents
                       For the three months ended July 31

                                                        2001               2000
                                                        ----               ----
Cash flows from operating activities:
  Net loss                                            $(33,877)         $(8,814)
  Adjustments to reconcile net income to net
  cash provided (used) by operating activities:
   Depreciation and amortization                        12,104           12,104
   Loss on restricted securities held for sale               -           50,000
   Changes in assets and liabilities:
     Accounts receivable                                 1,326          (71,583)
     Inventories                                         9,879           (3,201)
     Prepaid expenses                                   (5,005)          12,620
     Accounts payable                                   (4,480)          22,255
     Other accrued expenses                              8,820            8,163
     Deferred lease concessions                           (363)          (1,454)
Net cash provided (used) by
  operating activities                                 (11,596)          20,090

Cash flows from investing activities:
    Purchases of property and equipment                      -          (15,187)
Net cash (used) by investing activities                      -          (15,187)

Cash flows from financing activities:
   Principal payments on capital lease                  (2,384)          (1,948)

Net increase (decrease) in cash and
  cash equivalents                                     (13,980)           2,955

Cash and cash equivalents at beginning of year         451,650          591,208
Cash and cash equivalents at July 31                  $437,670         $594,163

Supplemental disclosures of cash flow information:
   Cash paid during the year for interest                 $578             $674

See notes to consolidated financial statements




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                             CHAMPIONS SPORTS, INC.

                   Notes to Consolidated Financial Statements

                                  July 31, 2001

Summarized Financial Information

Company or group of companies for which report is filed:

CHAMPIONS Sports, Inc. and Subsidiaries

     The  consolidated  balance  sheet as of July  31,  2001,  the  consolidated
statements of operations and the  consolidated  statements of cash flows for the
three  months  ended July 31, 2001 and July 31,  2000 have been  prepared by the
company,  without audit. In the opinion of management,  all  adjustments  (which
include  only normal  recurring  adjustments)  necessary  to present  fairly the
financial  position,  results of operations and changes in cash flow at July 31,
2001 and for all periods presented have been made.

     Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting  principles
have been omitted. It is suggested that these consolidated  financial statements
be read in conjunction with the financial  statements and notes thereto included
in the Company's  10-KSB as of April 30, 2001. The results of operations for the
period  ended July 31,  2001 are not  necessarily  indicative  of the  operating
results for the full year.







<PAGE>




Item 2. Managements  Discussion and Analysis of Financial  Condition and Results
of Operations


Results of Operation

     For the three months ended July 3, 2001, the Company's net loss was $33,877
and the net loss  available  for common  shareholders  was $49,815,  ($0.01) per
common  share.  The Company's  total assets  decreased by $32,285 to $843,950 at
July 31, 2001 from $876,235 at April 30, 2001.

     For the three months ended July 31, 2000, the Company's net loss was $8,814
and the net loss  available  for common  shareholders  was $24,752,  ($0.00) per
common share.  The Company's  assets increased to $1,434,672 as of July 31, 2000
from $1,416,470 at April 30, 2000.


Revenues

     The Company's  total revenues were $554,940 for the three months ended July
31, 2001 versus  $613,365  for the  three-month  period  ended July 31,  2000, a
decrease of $58,425 or 9.5%. By  component,  food and beverage  sales  increased
5.4% from the previous  year.  This  improvement  in food and beverage  sales is
attributed to an increase in customer  volume compared to the three months ended
July 31, 2000. Merchandise, memorabilia and consulting revenues were $18,108 for
the three  months ended July 31, 2001  compared to $101,211  for the  comparable
period in 2000.  Interest income was 0.6% of the Company's total revenue for the
three months ended July 31, 2001 contrasted to 1.1% for the comparable period in
2000.  Other income  represented  less than 1.0% of total revenues for the three
months ended July 31, 2001 and 2000.

Expenses

     Cost of food and  beverage  was 26.0% and 25.1 % of  related  sales for the
three months ended July 31, 2001 and 2000.  Cost of merchandise  and memorabilia
sales for the three months  ended July 31, 2001 was $34,793  compared to $33,143
in the  preceding  year.  Restaurant  payroll  and  related  costs were 35.0% of
related  food and  beverage  sales for the three  months ended July 31, 2001 and
34.6% for the three  months  ended July 31,  2000.  The  increase in  restaurant
payroll is attributed a scarce labor market and the necessity to increase hourly
wages to retain experienced workers.  Restaurant occupancy costs were $64,464 or
12.2% of food and beverage  sales  compared to $52,318 or 10.4% of related sales
during the three months ended July 31, 2000. This increase in occupancy costs is
attributed  to higher  sales  which in turn  raises the  percentage  paid to the
landlord in common area charges and base rent.  Other restaurant costs decreased
to 16.4% of related food and beverage  sales for the three months ended July 31,
2001  compared to 17.2% of related  sales during the three months ended July 31,
2000. General and administrative  expense for the Company's corporate office was
12.0% of the Company's  total  revenues for the three months ended July 31, 2001
compared to 14.2 % of total revenues for the three months

<PAGE>



ended July  31,2000.  Depreciation  and  amortization  expense were  constant at
approximately 2% of the Company's total revenues during each comparable period.


Liquidity and Capital Resources


     The  Company's  cash  position  on July 31, 2001 was  $437,670  compared to
$451,650 on April 30, 200, a decrease of  $13,980.  For the three  months  ended
July 31, 2001, the Company's  operations  used $11,596 in cash. The Company used
it cash to repay a capital lease for $2,384. The Company met its liquidity needs
during the period from its  revenues,  cash reserves and cash flow provided from
its San Antonio location.


     For  the  three  months  ended  July  31,  2000,  the  Company's  operating
activities provided cash of $20,090.  The Company purchased restaurant equipment
for $15,187 and repaid capital leases for $1,948. The Company realized a loss of
$ 50,000 on a restricted  security held for sale.  The Company met its liquidity
needs  during the period  from its  revenues  and cash flow from its San Antonio
location.

     The Company  anticipates that it will be able to meet its cash requirements
for the  next  twelve  months  from  its cash  reserves  and from its  operating
activities.

     The Company's  working capital was a negative  $240,311 on July 31 2001 and
negative $216,239 on April 30, 2001.

     Stockholder's  equity was $117,183 as of July 31, 2001 compared to $876,235
as of April 30, 2001.

     The Company continues to review and evaluate its operations and priorities.
The Company is actively  pursuing  merger or acquisition  candidates to meet its
longer-term  growth and liquidity needs.  There is no assurance that the Company
will be able to structure a merger or acquisition on terms  satisfactory  to the
Company.


Other

     This document contains "forward-looking  statements" (within the meaning of
the Private Securities Litigation Act of 1995) that inherently involve risks and
uncertainties.  The Company's actual results could differ  materially from those
anticipated  in  these  forward-looking  statements  as a result  of  unforeseen
external factors.  These factors may include, but are not limited to, changes in
general  economic  conditions,  customer  acceptance  of products  and  services
offered and other general competitive factors.





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Part II.   Other Information

Item 4.  Submission of Matters to A Vote of Security Holders

         None




Item 6.  Exhibits and Reports on Form 8-K

         None.



<PAGE>







                                   SIGNATURES

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


                             CHAMPIONS Sports, Inc.




                                /s/ James Martell
                                -----------------
                                James Martell
                                Chairman, President and Chief Executive Officer



                                /s/ James E. McCollam
                                ---------------------
                                James E. McCollam
                                Corporate Secretary, Chief Accounting
                                Officer and Controller


September 14, 2001





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