ARDEN GROUP INC
SC 13G/A, 1996-02-14
GROCERY STORES
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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549


                                  SCHEDULE 13G

                   UNDER THE SECURITIES EXCHANGE ACT OF 1934

                             (AMENDMENT NO. 10)/*/


                               ARDEN GROUP, INC.
- - --------------------------------------------------------------------------------
                               (Name of Issuer)


                        Class A Common Stock - $0.25 par
- - --------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                   03976210-9
                         ------------------------------
                                 (CUSIP Number)


Check the following box if a fee is being paid with this statement . (A fee is
not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).

/*/The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemend to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).

SEC 1745 (2/95)

                               Page 1 of 5 pages
<PAGE>
 
- - -----------------------                                  ---------------------
  CUSIP NO. 03976210-9                  13G                PAGE 2 OF 5 PAGES
- - -----------------------                                  ---------------------
 
- - ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
      CITY NATIONAL BANK (AS TRUSTEE)
- - ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [_]
                                                                (b) [_]
- - ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 
- - ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4    
      U.S.A.
- - ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5   
     NUMBER OF            223,980
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6
                          46,524
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7    
    REPORTING             223,980
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8
                          46,524
- - ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9  
      270,504
- - ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10                  
 
- - ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11    
      20.6%
- - ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12
      BK
- - ------------------------------------------------------------------------------

                     *SEE INSTRUCTION BEFORE FILLING OUT!

                               Page 2 of 5 pages
<PAGE>
 
Item 1(a) Name of Issuer:
          Arden Group, Inc.

Item 1(b) Name of Issuer's Principal Executive Offices:
          5900 S. Eastern Avenue
          Los Angeles, CA 90040

Item 2(a) Name of Person Filing:
          City National Bank (as Trustee)

Item 2(b) Address of Principal Business Office:
          400 North Roxbury Drive
          Beverly Hills, CA 90210

Item 2(c) Citizenship:
          U.S. - a national banking association

Item 2(d) Title of Class of Securities:
          Class A Common Stock - $.25 par

Item 2(e) CUSIP Number:  03976210-9

Item 3    Person filing is a:

   (a)    [  ] Broker or Dealer

   (b)    [X]  Bank as defined in section 3(a)(6) of the Act

   (c)    [  ] Insurance Company

   (d)    [  ] Investment Company

   (e)    [  ] Investment Adviser

   (f)    [  ] Employee Benefit Plan, Pension Fund subject to
               ERISA or Endowment Fund

   (g)    [  ] Parent Holding Company

   (h)    [  ] Group


                               Page 3 of 5 pages
<PAGE>
 
Item 4    Ownership:

   (a) Amount Beneficially Owned: 270,504

   (b) Percent of Class: 20.6%

   (c) Number of shares as to which such person has

          (i)     sole power to vote or direct the vote:  223,980

          (ii)    shared power to vote or direct the vote:  46,524

          (iii)   sole power to dispose or direct the disposition
                  of:  223,980

          (iv)    shared power to dispose or direct the disposition
                  of:  46,524

Item 5    Ownership of Five Percent or Less of a Class:
          If this statement is being filed to report the fact that as of the
          date hereof the reporting person has ceased to be the beneficial owner
          of more than five percent of the class of securities, check the
          following [ ].

Item 6    Ownership of More Than Five Percent on Behalf of Another Person:  An
          employee benefit plan is the owner of 223,980 of the shares (17.0% of
          Class) reported on.

Item 7    Identification and Classification of the Subsidiary Which Acquired the
          Security Being Reported on by the Parent Holding Company:  Not
          Applicable.

Item 8    Identification and Classification of Members of the Group:  Not
          Applicable.

Item 9    Notice of Dissolution of Group:  Not Applicable.

Item 10   Certification:

          By signing below, I certify that, to the best of my knowledge and
          belief, the securities referred to above were acquired in the ordinary
          course of business and were not acquired for the purpose of and do not
          have the effect of changing or influencing the control of the issuer
          of such securities and were not acquired in connection with or as a
          participant in any transaction having such purposes or effect.

                               Page 4 of 5 pages
<PAGE>
 
Signature:

          After reasonable inquiry and to the best of my knowledge and belief, I
          certify that the information set forth in this statement is true,
          complete and correct.


Date:     February 9, 1996


                                      City National Bank,
                                      a national banking association



                                      By: /s/ JERRY CLEBANOFF
                                          ________________________________
                                          Jerry Clebanoff
                                          Senior Vice President


                               Page 5 of 5 pages


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