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Bookstore files for bankruptcy

Borders Group Inc. filed for bankruptcy protection and said it would close about one-third of its bookstores, after years of shriveling sales that made it impossible to manage its crushing debt load.

Borders Group Inc. filed for bankruptcy protection and said it would close about one-third of its bookstores, after years of shriveling sales that made it impossible to manage its crushing debt load.

The long-expected Chapter 11 filing will give the second-largest U.S. bookstore chain a chance to try to fix its finances and overhaul its business in an attempt to survive the growing popularity of online bookbuying and digital formats.

But the chain still faces questions about its longer-term survival in the face of competition from larger rival Barnes & Noble Inc. and discounters such as Wal-Mart Stores Inc. and Costco Wholesale Corp., as well as from Web retailer Amazon.com Inc. and from Apple Inc. in electronic books.

Borders’ President Mike Edward said his chain “does not have the capital resources it needs to be a viable competitor.” He said the bankruptcy was essential for Borders to restructure its debt and still operate.

 
 
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