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Egghead.com Fried; Operations Cooked

Egghead.com Inc., the troubled Menlo Park, Calif.-based e-tailer that in August filed for Chapter 11 bankruptcy protection, has suspended all operations and stopped taking new orders.

Egghead.com filed for bankruptcy on Aug. 15. The company announced an agreement to sell assets to Fry's Electronics under the bankruptcy proceeding.

At that time, Egghead.com decided to slash all but one-third of its employees to focus on customer service and ongoing operations through the transition. However, it fully expected for the site to continue operating once the sale had closed. Now, those plans have apparently hit a roadblock.

"Our plan had been to sell the assets of the business as a going concern and continue providing Egghead customers with great value and selection. Unfortunately, we have reached a point where we are unable to continue active operations," Egghead.com told visitors in a memo posted on its web site.

The company ceased operations as of 8 pm ET on Oct. 25. Egghead.com will no longer operate the (800)EGGHEAD customer service telephone line. It also will no longer accept any customer returns.

On Monday, Oct. 29, the company will notify the last of its customers -- those with pending orders or backorders -- as to the status of those orders. Customers with additional questions were asked to visit a static page on its web site.

"The Egghead URL and web site will still be accessible at www.egghead.com but the shopping and fulfillment functionality will be disabled effective as of the date and time noted above," the final memo continued.

Fry's Electronics is a privately held chain of electronics stores based in San Jose, Calif.