1
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) May 8, 2001
KRAUSE'S FURNITURE, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
-------------------------------
(State or other jurisdiction of
incorporation or organization)
0-17868 77-0310773
------------------------ ------------------------------------
(Commission File Number) (I.R.S. Employer Identification No.)
200 North Berry Street, Brea, California
(Address of principal executive offices)
92821-3903
(Zip Code)
(714) 990-3100
(Registrant's telephone number, including area code)
ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
On May 8, 2001, Krause's Furniture, Inc. (the "Company") was informed by
Arthur Andersen LLP ("Arthur Andersen") that it had resigned as the Company's
independent public accountants. The resignation of Arthur Andersen was not
recommended or approved by the Audit Committee of the Company. Arthur Andersen
performed the audit of the Company's financial statements for the years ended
December 24, 2000 and December 26, 1999. During these periods and the subsequent
interim period prior to their resignation, there were no disagreements with the
former accounting firm on any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure, which
disagreements, if not resolved to Arthur Andersen's satisfaction, would have
caused Arthur Andersen to make reference to the subject matter of the
disagreements in connection with Arthur Andersen's reports, nor were there any
reportable events.
The audit report of Arthur Andersen for the Company's fiscal year 1999
did not contain an adverse opinion, or a disclaimer of opinion, or qualification
or modification as to uncertainty, audit scope, or accounting principles. The
audit report of Arthur Andersen for the fiscal year ended December 24, 2000 was
modified as to uncertainty regarding the ability of the Company to continue as a
going concern due to the Company's recurring losses from operations,
noncompliance with certain financial covenants in its debt agreements and a net
accumulated deficit.
The Company has requested Arthur Andersen to furnish it with a letter
addressed to the Securities and Exchange Commission stating whether it agrees
with the statements made above by the Company. A copy of such letter, dated May
14, 2001 is filed as Exhibit 16.1 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
16.1 Letter from Arthur Andersen to the Securities and Exchange
Commission dated May 14, 2001.
2
SIGNATURES
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.
KRAUSE'S FURNITURE, INC.
Date: May 14, 2001 By: /s/ Robert A. Burton
----------------------------
Robert A. Burton
Executive Vice President
and Chief Financial
Officer (Principal
Financial Officer and
Principal Accounting
Officer)
EXHIBIT INDEX
Exhibits
16.1 Letter from Arthur Andersen to the Securities and Exchange Commission dated
May 14, 2001.