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): 1206/1301/~~2006~~2007

VARSITY GROUP INC

(Exact name of registrant as specified in its charter)

Commission File Number: 000-28977

DE		54-1876848
(State or other jurisdiction of		(IRS Employer
incorporation)		Identification No.)

1300 19th Street NW, 8th Floor Washington, DC 20036

(Address of principal executive offices, including zip code)

202.349.1242

(Registrant’s telephone number, including area code)

Former address: 1850 M Street, Suite 1150, NW, Washington, DC 20036

(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:

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Information to be included in the report

Item 3.02. Unregistered Sales of Equity Securities

On June 1, 2007, the Company issued 502,776 shares of its common stock in accordance with a provision in the Campus Outfitters, LLC acquisition agreement dated May 26, 2005, which called for additional contingent payments if the value of the Company's common stock was not equal to or greater than the per share purchase price on the two year anniversary date of the Campus Outfitters acquisition. One of the Company's largest investors informed the Company that they had purchased substantially all of these shares in a private sale on June 4, 2007.

Item 7.01. Regulation FD Disclosure

~~The~~As ~~Company~~disclosed ~~issued~~under aItem ~~press~~3.02, ~~release earlier today announcing a cost reduction program geared to reduce its cost structure and focus~~ on ~~its~~June ~~core textbook and uniform businesses. Highlights include a workforce reduction of approximately 40%~~1, ~~which~~2007 ~~included~~the ~~closing~~Company ~~its~~issued ~~IQ Digital unit~~502,776 ~~and~~shares ~~also~~of ~~reducing~~ its ~~remaining~~common ~~financial commitment on its IT outsourcing agreement with SchoolOne by approximately 40%~~stock.AThe ~~copy~~full text of the press release is attached hereto as anExhibit ~~exhibit under item 9~~99.011.

Item 9.01. Financial Statements and Exhibits

Signature(s)

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

		VARSITY GROUP INC
Date: December 13, 2006	By:	/s/ Jim Craig
Date: June 06, 2007	By:	/s/ Jim Craig
		Jim Craig
		CFO

Exhibit Index

Exhibit No. Description EX-99.1

Exhibit No.		Description
EX-99.1		Issuance of shares

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