Chapter 11 for Borders
POSTED: Thursday, February 17, 2011 - 7:37am
UPDATED: Thursday, February 17, 2011 - 9:42am
Borders Group Inc. is opening a new chapter in its book-- Chapter 11.
The second-largest U.S. bookstore chain filed for bankruptcy protection and said it would close about one-third of its bookstores, after years of diminishing sales that made it difficult to manage its debt.
Borders President Mike Edward said the filing was necessary to restructure its debt and still operate.
According to documents filed with the U.S. Bankruptcy Court in Manhattan, Borders had liabilities of $1.29 billion and assets of $1.28 billion as of December 25.
The company said about 6,000 jobs will be affected when 200 of its superstores close.
Borders operates about 500 superstores, in addition to more than 100 smaller Waldenbooks locations.