The U.S. online shopping world's biggest day is here, but will strong web sales on Black Friday and Thanksgiving cut into Cyber Monday's take?
Egghead.com Inc., one of the first and most enthusiastic sellers on the web, has filed for Chapter 11 bankruptcy and agreed to sell all assets to San Jose, CA-based Fry`s Electronics.
Egghead.com Inc., one of the first and most enthusiastic sellers on the web, has filed for Chapter 11 bankruptcy and agreed to sell all assets to Fry`s Electronics. It is the end of a bold experiment that transformed a chain of software stores into a web-based pure-play retailer.
Menlo Park, CA-based Egghead.com said it will continue to operate its business under Bankruptcy Court supervision pending close of the sale. After that, Fry`s is expected to operate the Egghead.com site under the Egghead brand. Fry`s Electronics is a privately held chain of electronics superstores based in San Jose, CA.
A third of Egghead.com`s employees have been asked to remain for the transition period. Others have been terminated, and assets of the company not acquired by Fry`s are expected to be sold under Bankruptcy Court supervision.
"We regret having to take this action, which was forced on us in recent weeks by a dramatic and unexpected decline in sales," said Jeff Sheahan, president and CEO of Egghead.com. "That made it impossible to reach profitability in the fourth quarter. We investigated a number of alternatives and were pleased with Fry`s offer to purchase the assets of the company and continue running the business, as the Egghead brand name is a strong and vibrant one. We believe this action will allow the company to realize a value for its assets which will benefit our creditors."