KRAUSES FURNITURE INC
10-C, 1996-09-13
HOUSEHOLD FURNITURE
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<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-C

        REPORT BY ISSUER OF SECURITIES QUOTED ON THE NASDAQ STOCK MARKET

                  Filed pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934 and Rule 13a-17
                              or 15d-17 thereunder

                            KRAUSE'S FURNITURE, INC.
- --------------------------------------------------------------------------------
                 (Exact name of issuer as specified in charter)

                     200 North Berry Street, Brea, CA 92621
- --------------------------------------------------------------------------------
                    (Address of principal executive offices)

Issuer's telephone number, including area code       (714) 990-3100
                                                ----------------------------


                    I. CHANGE IN NUMBER OF SHARES OUTSTANDING

Indicate any change (increase or decrease) of five percent or more in the number
of shares outstanding:

1.   Title of security   COMMON STOCK
2.   Number of shares outstanding before the change    17,364,001
3.   Number of shares outstanding after the change     19,033,011
4.   Effective date of change   SEPTEMBER 10, 1996
5.   Method of change    PRIVATE PLACEMENT

      Specify method (such as merger, acquisition, exchange, distribution,
      stock split, reverse split, acquisition of stock for treasury, etc.)

Give brief description of transaction:

                   SALE OF COMMON STOCK IN PRIVATE PLACEMENT


                          II. CHANGE IN NAME OF ISSUER

1.       Name prior to change       N/A
2.       Name after change          N/A
3.       Effective date of charter amendment changing name             N/A
4.       Date of shareholder approval of change, if required           N/A


Date  September 13, 1996               /s/ ROBERT G. SHARPE
      ------------------               -----------------------------------
                                       Robert G. Sharpe
                                       Executive Vice President


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