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Borders Files For Bankruptcy Protection

A discount sign at a Borders bookstore in Washington, DC on February 14, 2011. i

A discount sign at a Borders bookstore in Washington, DC on February 14, 2011. NICHOLAS KAMM/AFP/Getty Images hide caption

itoggle caption NICHOLAS KAMM/AFP/Getty Images
A discount sign at a Borders bookstore in Washington, DC on February 14, 2011.

A discount sign at a Borders bookstore in Washington, DC on February 14, 2011.

NICHOLAS KAMM/AFP/Getty Images

The bookseller filed for Chapter 11 bankruptcy protection today in New York, seeking to reorganize its debt. On its website, Borders Group says it's business as usual: stores are open, online sales continue and it's accepting gift cards. The New York Times says Borders has $1.29 billion dollars in debt and $1.27 billion in assets. Its biggest creditors are publishing companies. As Bloomberg notes, the company tried to save money by cutting jobs, offering its own e-reader and restructuring its debt and management but has lost about $3 billion dollars since 1998.

The AP says the company plans to close about 200 stores - about a third of its stores - over the next few weeks.

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