Shares of

Amazon.com

(AMZN) - Get Report

were down modestly Wednesday morning as the online retailer denied rumors that it was filing for Chapter 11 bankruptcy protection.

Shares of the company recently slipped 50 cents, or 4.31%, to $11.25 in morning trading on the

Nasdaq

, after falling about 6.9% in preopen

Island

trading.

CNBC

reported the retailer issued a brief statement denying it was filing for Chapter 11.

"Whatever the rumor, there is absolutely no truth to it. We are not filing Chapter 11," a company spokeswoman told

TheStreet.com

Wednesday morning. She said the source of the rumor could have been in Germany but could not confirm it.

Separately, the company said it has expanded its music downloads section, offering songs from hundreds of artists in a bid to jumpstart slowing CD sales.

Amazon's expanded section allows users to leave "tips" for the musicians, with Amazon taking a 30% cut. The move comes as the company faces dwindling growth in its core business of books, music and videos.