<PAGE>
 
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  FORM 10-K/A

           (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934 (Fee Required)

             For The Fifty-Two Week Fiscal Year Ended May 29, 1996

                         Commission File Number 0-2849

                       AMERICAN RECREATION CENTERS, INC.

       Incorporated in California         Federal Employer No. 94-1441151

      11171 Sun Center Drive, Suite 120, Rancho Cordova, California 95670
           Mailing Address: P. O. Box 580, Rancho Cordova, CA  95741

                 Registrant's Telephone Number:  (916) 852-8005

          Securities Registered Pursuant to Section 12 (b) of the Act:
                                      None

          Securities Registered Pursuant to Section 12 (g) of the Act:
                           Common Stock, No Par Value

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 
                               -----           -----                

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.  [  ]

The aggregate market value of the voting stock held by non-affiliates of
Registrant was $28,152,709 based upon the average trading price quoted on the
NASDAQ system on August 14, 1996.  The number of shares of Registrant's only
class of common stock outstanding at fiscal year end was 4,647,899  shares.

                                       1
<PAGE>
 
                                    PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a)(1)  Financial Statements

The financial statements of the Company as set forth under Item 8 of this report
on Form 10-K are incorporated herein by reference to the following pages of the
1996 Annual Report to Shareholders:
<TABLE>
<CAPTION>
 
                                                                     Page in
                                                                      Annual
                                                                    Report**
                                                                    --------
<S>                                                                 <C>
 
        Report of Independent Accountants*                                14
 
        Consolidated Balance Sheet at
        May 29, 1996 and May 31, 1995*                                     6
 
        Consolidated Statement of Income
        and Retained Earnings for the
        three years ended May 29, 1996*                                    7
 
        Consolidated Statement of Cash Flows
        for the three years ended May 29, 1996*                            8
 
        Notes to Consolidated Financial Statements*                     9-13
 
(a)(2)  Financial Statement Schedules
 
        Report of Independent Accountants
        on Financial Statement Schedule
        for the three years ended May 29, 1996*                           19
 
        II - Valuation Reserves*                                          20

(a)(3)  Financial Statements of the American Recreation Centers, Inc. Employee
        Stock Ownership Plan for the year ended May 29, 1996 to be filed by 
        amendment.
</TABLE>

 * Filed previously
** Incorporated by reference from the indicated pages of the 1996 Annual Report
   to Shareholders.

All other schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.

                                       2
<PAGE>
 
                                   SIGNATURES

Pursuant to the requirement of Sections 13 and 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                  AMERICAN RECREATION CENTERS, INC.
                                  (Registrant)


Dated: February 11, 1997          Robert A. Crist
                                  --------------------------------------------
                                  Robert A. Crist, President and
                                  Chief Executive Officer

Pursuant to the requirement of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.



/s/Robert A. Crist                                           February 11, 1997
-----------------------------------------------                               
Robert A. Crist, Principal
Executive Officer and Director,
President



/s/Karen B. Wagner                                           February 11, 1997
-------------------------------------------                         
Karen B. Wagner, Principal
Financial and Accounting Officer,
Vice President/Treasurer



/s/Bruce Feuchter                                            February 11, 1997
---------------------------------------------                                 
Bruce Feuchter, Director,
Legal Secretary



/s/Stephen R. Chanecka                                       February 11, 1997
---------------------------------------                        
Stephen R. Chanecka, Director

                                       3
<PAGE>
 
American Recreation
Centers, Inc.
Employee Stock Ownership Plan
Financial Statements
May 29, 1996 and May 31, 1995
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Financial Statements Table of Contents
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
 
                                                                 Page
<S>                                                              <C>
 
Report of Independent Accountants                                   3
 
Financial Statements:
 
  Statement of Net Assets Available for Benefits                    4
 
  Statement of Changes in Net Assets Available for Benefits         5
 
  Notes to Financial Statements                                   6-8
 
Supplemental Schedule:
 
  Assets Held for Investment at 
  May 29, 1996 (Schedule I)                                         9
 
 
</TABLE>
<PAGE>
 
                       Report of Independent Accountants

January 31, 1997

To the Administrative Committee and Participants,
American Recreation Centers, Inc.
Employee Stock Ownership Plan

We were engaged to audit the financial statements of American Recreation
Centers, Inc. Employee Stock Ownership Plan (the Plan) as of May 29, 1996 and
May 31, 1995 and for the years then ended and the schedule as of May 29, 1996,
as listed in the accompanying table of contents.  These financial statements and
the schedule are the responsibility of the Plan's management.

As permitted by Section 2520.103-8 of the Department of Labor Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, the Plan administrator instructed us not to perform, and
we did not perform, any auditing procedures with respect to the information
summarized in Note 4, which was certified by Imperial Trust Company, the trustee
of the Plan, except for comparing such information with the related information
included in the financial statements and schedule. We have been informed by the
Plan administrator that the trustee holds the Plan's investment assets and
executes investment transactions. The Plan administrator has obtained a
certification from the trustee as of and for the years ended May 29, 1996 and
May 31, 1995 that the information provided to the Plan administrator by the
trustee is complete and accurate.

As more fully described in Note 2 and as permitted under the Department of Labor
Rules and Regulations, the Plan prepares its financial statements on a modified
cash basis of accounting which is a comprehensive basis of accounting other than
generally accepted accounting principles.

Because of the significance of the information that we did not audit, we are
unable to, and do not, express an opinion on the accompanying financial
statements and schedule taken as a whole.  The form and content of the
information included in the financial statements and schedule, other than that
derived from the information certified by the trustee, have been audited by us
in accordance with generally accepted auditing standards and, in our opinion,
are presented in compliance with the Department of Labor Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974.

/s/Price Waterhouse LLP
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Statement of Net Assets Available for Benefits
-----------------------------------------------------------------------------

<TABLE>
<CAPTION>
 
 
                                                           May 29,      May 31,
                                                             1996         1995
<S>                                                       <C>          <C>
                       Assets
 
Assets held by trustee for investment:
  Cash, including short-term investment funds             $  387,854   $  260,236
 
  Common stock of American Recreation Centers, Inc.,
   at market, 710,882 and 686,479 shares ($3,898,474
   and $3,587,277, at cost)                                4,620,726    4,934,411
                                                          ----------   ----------

                                                           5,008,580    5,194,647
Employer contributions receivable from American
 Recreation Centers, Inc.                                    300,000      414,306
                                                          ----------   ----------
 
Net assets available for benefits                         $5,308,580   $5,608,953
                                                          ==========   ==========
</TABLE>

                See accompanying notes to financial statements.

                                       4
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Statement of Changes in Net Assets Available for Benefits
-----------------------------------------------------------------------------

<TABLE>
<CAPTION>
 
                                                                 Fiscal years ended
                                                                May 29,      May 31,
                                                                 1996          1995
<S>                                                           <C>           <C>
 
Contribution from American
 Recreation Centers, Inc.                                     $  300,000    $  425,000
 
Investment income:
  Cash dividends                                                 169,197       167,780
  Interest                                                        11,943         5,604
                                                              ----------    ----------
 
                                                                 481,140       598,384
 
Unrealized (depreciation) appreciation of common
 stock, net                                                     (480,818)      186,641
                                                              ----------    ----------

                                                                     322       785,025
                                                              ----------    ----------
Expenses and distributions:
  Administrative fees                                             15,205        10,142
  Interest expense                                                     -         1,070
  Distributions to former participants                           285,490       579,954
                                                              ----------    ----------

                                                                 300,695       591,166
                                                              ----------    ----------
 
(Decrease) increase in net assets available for benefits        (300,373)      193,859
 
Net assets available for benefits, beginning of year           5,608,953     5,415,094
                                                              ----------    ----------
 
Net assets available for benefits, end of year                $5,308,580    $5,608,953
                                                              ==========    ==========
 
</TABLE>

                See accompanying notes to financial statements.

                                       5
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Notes to Financial Statements
-----------------------------------------------------------------------------

1. Description of Plan
   The following description of the Plan provides only general information.
   Participants should refer to the Plan document for a more complete
   description of the Plan's provisions.

   The Plan is a defined contribution plan covering all employees of American
   Recreation Centers, Inc. (the Company) who are not covered by a collective
   bargaining agreement and have met specified age and service requirements.
   The Plan enables participants to acquire equity interests in the Company.
   The Plan is designed to comply with Internal Revenue Code Section 4975(e)(7)
   and the regulations thereunder, and is subject to the applicable provisions
   of the Employee Retirement Security Act of 1974 (ERISA).

   The Plan provides for vesting of 20% upon the completion of two years of
   credited service and additional vesting of 20% per year up to 100% for each
   additional year of service credited to the participant.  Plan participants
   totaled 1,610 and 1,582 at May 29, 1996 and May 31, 1995.

   All contributions are made by the Company to the American Recreation Centers,
   Inc. Employee Stock Ownership Trust (the Trust).  Contributions may be paid
   in cash, common stock of the Company or other qualified property.  Common
   stock and other qualified property are contributed at the fair market value
   of the property on the date of contribution. Contributions are discretionary
   and are determined by resolution of the Board of Directors of the Company.
   Contributions and the income, forfeitures and gains and losses of the Plan
   are allocated to participants at the end of each fiscal year.

   In November, 1996 the Company's administrative committee hired Howard Johnson
   & Company to assist them in administering the Plan.

2. Summary of Significant Accounting Policies

   Basis of accounting
   The accounts of the Plan are maintained on a modified cash basis.  Only the
   employer contributions are accrued.  Income and expenses are accounted for on
   a cash basis.

   Tax status
   The Company has received a favorable determination letter from the Internal
   Revenue Service dated May 1996 as to the qualified status of the Plan.  The
   Company is of the opinion that the Plan continues to fulfill the requirements
   of the Internal Revenue Code and the Employee Retirement Income Security Act
   of 1974, and that the trust, which forms a part of the Plan, is exempt from
   income tax.  Accordingly, no provision has been made for federal or state
   income taxes.

   Investment valuation
   Investments in the common stock of the Company are valued at the average of
   the last reported sales price and the latest quoted bid price at year-end.


                                       6
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Notes to Financial Statements
-----------------------------------------------------------------------------

   Investment transactions and investment income
   Dividend income is recorded on the payment date.

   In accordance with the policy of stating investments at fair market value,
   annual unrealized market appreciation or depreciation of investments is
   reflected in the statement of changes in net assets available for benefits.

   Distributions
   Distributions to participants are based on the value of the Company's common
   stock at the time of distribution.  The common stock is valued at the average
   of the last reported sales price and the latest quoted bid price on the date
   of distribution.  Such distributions are made by the trustee at least
   annually but not more frequently than quarterly.

   Distributions are accounted for on a cash basis for financial statement
   purposes.  This accounting results in a difference between the Plan's
   financial statements and its Form 5500 filed with the Internal Revenue
   Service, as benefit obligations are accounted for on an accrual basis for
   purposes of the Form 5500.  The difference of $277,970 and $199,608 at May
   29, 1996 and May 31, 1995, represents the accumulated benefit obligation on
   Form 5500.

   Expenses of the Plan
   Direct expenses incurred in the administration of the Plan and the trust are
   paid by the Plan. No indirect expenses are allocated to the Plan by the
   Company.

   Use of estimates
   The preparation of financial statements in conformity with generally accepted
   accounting principles requires management to make estimates and assumptions
   that affect the reported amounts of assets and liabilities and disclosure of
   contingent assets and liabilities at the date of the financial statements and
   the reported amounts of revenues and expenses during the reporting period.
   Actual results could differ from those estimates.


3. Contributions
   For fiscal year ended May 31, 1995, the Company made a cash contribution of
   $425,000.

   At May 29, 1996, the Company had authorized a contribution to the Plan of
   $300,000.  This contribution will be made in the form of cash.

4. Financial Data Certified by the Trustee
   The financial statements and schedule appearing on pages 4, 5, and 9 of this
   report were prepared from financial data certified by the trustee, Imperial
   Trust Company, in accordance with Section 2520.103-5 of the Department of
   Labor Rules and Regulations for Reporting and Disclosure under ERISA.


                                       7
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Notes to Financial Statements
-----------------------------------------------------------------------------


5. Subsequent Event
   In January, 1997, the Company entered into a merger agreement pursuant to
   which AMF Bowling Centers, Inc. will acquire the Company's common stock for
   $8.50 per share in cash. The merger is subject to a number of conditions,
   including governmental and shareholder approval, and is expected to close by
   April 30, 1997.  In conjunction with the merger, the Plan will be terminated
   and all participants in the Plan will become fully vested. Subsequently, the
   assets of the Trust will be distributed to or for the benefit of the
   participants of the Plan in the form of cash.


                                       8
<PAGE>
 
American Recreation Centers, Inc.

Employee Stock Ownership Plan
Assets Held for Investment at May 29, 1996                         Schedule I
-----------------------------------------------------------------------------

<TABLE>
<CAPTION>
 
 
                                        Description                   Current
         Identity of Issue             of Investment       Cost        Value
<S>                                    <C>              <C>          <C>
 
American Recreation Centers, Inc.      710,882 shares   $3,898,474   $4,620,726
 
Short-term investment funds            387,800 units       387,800      387,800
                                                                     ----------
 
                                                                     $5,008,526
                                                                     ==========
 
</TABLE>
 
                                       9