Egghead Software | Wikipedia audio article
Channel: wikipedia tts
Date: 2019-01-06

This is an audio version of the Wikipedia Article:
https://en.wikipedia.org/wiki/Egghead_Software


00:02:53 1 Brick-and-mortar period (1984–1998)
00:04:47 2 Internet period (1998–present)



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SUMMARY
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Egghead Software was a computer software retail company. It was founded by Victor Alhadeff in 1984, and grew into a chain with over 200 stores in the United States and a few in Canada. Its stores were primarily located adjacent to shopping malls. Egghead operated two distinct divisions - Retail Division and the Corporate, Government & Education (CGE) Division. Competition grew especially from big box retailers. Severe price pressures also grew in the CGE division. In May 1996 Egghead sold the CGE division to Software Spectrum of Dallas, Texas. Reported proceeds of the sales vary from $45 million to $90 million and the associated revenue was documented at between $362 million to $440 million. The SEC filing regarding "discontinued operations had this to say about the transaction, "The Company has also historically served corporate, government, and education customers through its corporate, government, and education (CGE) division.  On May 13, 1996, the Company sold the CGE Division to Software Spectrum, Inc. (SSI) a Texas corporation, for $45.0 million in cash which
did not include the CGE division's receivables and inventory that Egghead is liquidating in an orderly manner.Faced with declining revenues, in 1998, the company shifted its focus to online business, closing its retail locations and selling entirely through its Egghead.com website. Egghead.com merged with online auctioneer OnSale.com in 2000 and assumed the name Egghead.com.Egghead was hurt by a December 2000 revelation that hackers had accessed its systems and potentially compromised customer credit card data. The company filed for bankruptcy in August 2001. After a deal to sell the company to Fry's Electronics for $10 million fell through, its assets were acquired by Amazon.com for $6.1 million.