Feeds

Fry's eats scrambled Egghead

Titsup.com Part 94

  • alert
  • submit to reddit

Californian e-tailer Egghead.com is to sell up after filing for Chapter 11 bankruptcy.

The dotcom, which flogged IT-related products, issued a statement yesterday saying it would sell its Web site and other assets to the US retail chain Fry's Electronics.

It has laid off 185 employees as a result of the move. This leaves it with 130 staff, compared to the workforce of 500 it supported five months ago.

Egghead is to continue trading under bankruptcy court supervision until the sale - which is expected by the end of next month. San Jose-based Fry's is then expected to operate the Egghead.com site.

Egghead CEO Jeff Sheahan said the move was the result of a "dramatic and unexpected" drop in sales in recent weeks, which made it impossible for the company to drag itself into the black in its fourth quarter.

Once upon a time, Egghead was America's biggest IT retailer. In 1998, after falling flat on its face with this business, it announced its intention to set up as a pure play Internet retailer.

This is what we wrote at the time (Egghead failures ask for second chance) "Egghead.com Inc. - as it is now wants to be called - is a company that has lost its way. Instead of wasting shareholder funds in a desperate attempt to reinvent the firm, Egghead’s managers should saddle up and move on." ®

Related Link

Egghead.com statement

Related Stories

Egghead credit card hack: serious questions remain
Egghead.com loss narrows

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.