Egghead.Com to Sell Assets to Fry’s Retailer
Egghead.com Inc., the computer products store operator turned Internet retailer, said it agreed to sell its Web site and other assets to retailer Fry’s Electronics Inc. as it prepared to file for Chapter 11 bankruptcy protection. The company said it fired 185 employees, or 59% of its work force.
Terms of the asset sale weren’t disclosed.
The company will continue to operate under U.S. Bankruptcy Court supervision until the sale closes, Egghead.com said. Fry’s, a closely held company based in San Jose, is expected to continue to operate the Egghead.com Web site, Egghead.com said.
Menlo Park, Calif.-based Egghead.com decided to sell the assets because sales declined unexpectedly and the company doesn’t expect to become profitable in the fourth quarter, Chief Executive Jeff Sheahan said.
Egghead.com shares fell 1 cent to 30 cents on Nasdaq.
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