KRAUSES FURNITURE INC
10-C, 1996-09-03
HOUSEHOLD FURNITURE
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<PAGE>   1
                                 UNITED STATES
                       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    4,120,810
                                                   --------------------------

3.  Number of shares outstanding after the change    17,364,001
                                                  ---------------------------

4.  Effective date of change    August 26, 1996
                             ------------------------------------------------

5.  Method of change:

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

                         Private Placement and Exchange
- -------------------------------------------------------------------------------

Give brief description of transaction  

Issuance of shares in private placement of common stock, exchange of notes and
conversion of preferred stock.
- -------------------------------------------------------------------------------


                         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 3, 1996            /s/ ROBERT G. SHARPE
      -----------------            --------------------------------------------
                                   Robert G. Sharpe, Executive Vice President

     


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