Egghead Software was founded by Victor Alhadeff in 1984 as a computer software retail company.[1] It grew into a chain with over 200 stores in the United States, and a few in Canada, primarily located in shopping malls. 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.[1] Egghead.com merged with online auctioneer OnSale.com in 2000 and assumed the name Egghead.com.[1][2]
Egghead was hurt by a December 2000 revelation that hackers had accessed its systems and potentially compromised customer credit card data.[citation needed] 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.