Egghead gets $20 million boost
Egghead.com, Inc. has obtained a $20 million financing line from IBM Global Financing, secured by Egghead.com`s inventory, accounts receivable and other assets. "Based on our cash position at the beginning of the year and this new financing, we believe we will have sufficient funds to take us through to profitability," said John Labbett, executive vice president and CFO of Egghead.com. "In addition, we are continuing to explore other financing options in order to maintain a solid cash balance."
Earlier this week, Egghead laid off 77 workers-40 from Menlo Park, Calif. and 37 from Vancouver, Wash.-as part of its cost-cutting efforts. The company has 591 employees left and says it is not planning any further layoffs.
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