As credit concerns mount, two executives also announced their departure from the company. Thomas D. Carney, executive vice president, general counsel and secretary and D. Scott Laverty, senior vice president and chief information officer, resigned last Monday. Reasons for their departures were not provided.

Borders has been grappling with decreasing sales, as the printed book industry has found it difficult to compete with e-readers and Apple's ( AAPL) iPad.

The company widened its loss to $74.4 million in its third quarter from $37.7 million in the year prior.

But Borders has been grappling with its finances for some time. In 2008, faced with a credit crunch, Borders considered putting the company up for sale. While the search proved fruitless, it did end up receiving a $42.5 million infusion from William Ackman's Pershing Square Capital.

In December, Ackman said he was prepared to finance a Borders' bid for rival Barnes & Noble ( BKS), in a deal that would be valued at $16 a share.

Shares of Borders fell 12.5% early last week, but recovered to end the week down 4% to 92 cents. The stock is off nearly 21% since the end of 2010.

--Written by Jeanine Poggi in New York.

>To contact the writer of this article, click here: Jeanine Poggi.

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