4/A 1 form4a.txt FORM 4 AMENDMENT ------------------------------ OMB APPROVAL ------------------------------ OMB Number 3235-0287 Expires: December 31, 2001 Estimated average burden hours per response ....... 0.5 ------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 [ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). (Print or Type Response) ================================================================================ 1. Name and Address of Reporting Person(*) General Electric Capital Corporation -------------------------------------------------------------------------------- (Last) (First) (Middle) 260 Long Ridge Road -------------------------------------------------------------------------------- (Street) -------------------------------------------------------------------------------- (City) (State) (Zip) Stamford Connecticut 06927 ================================================================================ 2. Issuer Name and Ticker or Trading Symbol Krause's Furniture, Inc. (SOFA) ================================================================================ 3. IRS or Social Security Number of Reporting Person (Voluntary) ================================================================================ 4. Statement for Month/Year April/2001 ================================================================================ 5. If Amendment, Date of Original (Month/Year) ================================================================================ 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) [ ] Director [ X ] 10% Owner [ ] Officer (give title below) [ ] Other (specify below) -------------------------------------------------------------------- ================================================================================ 7. Individual or Joint/Group Filing (Check Applicable Line) [ X ] Form filed by One Reporting Person [ ] Form filed by More than One Reporting Person ================================================================================ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned ================================================================================

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly * If the form is filed by more than one reporting person, see Instruction 4(b)(v). FORM 4 (continued) Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities) ================================================================================

Explanation of Responses: * Issued in connection with GE Capital Equity Investments, Inc.'s ("GE Equity") acquisition of 20,000 shares of Series A Convertible Preferred Stock, par value $0.001 per share ("Preferred Stock"), of the Issuer at $50 per share. ** Issued in connection with a letter agreement dated as of May 5, 2000, pursuant to which the Reporting Person agrees to receive 21,615 shares of the Preferred Stock in lieu of cash interest in the amount of $1,080,736.59 accruing on all of the notes executed by the Issuer in favor of the Reporting Person under a Supplemental Securities Purchase Agreement, without separate consideration. *** Issued in connection with the 9.5% subordinated notes of the Company issued in an original aggregate principal amount of $5.0 million as a result of certain performance tests not being met. **** The warrants were issued in connection with the Waiver of Default and Consent to Amendment of Business Plans, dated as of April 10, 2001. ***** The warrants were issued in connection with the Waiver of Default and Consents to Amendment of Business Plans, dated as of April 10, 2001. /s/ Barbara J. Gould May 10, 2001 --------------------------------------------- ----------------------- ** Signature of Reporting Person Date Barbara J. Gould, Department Operations Manager General Electric Capital Corporation ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure. Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

KRAUSES FURNITURE INC 4/A