Borders Files Chapter 11 Bankruptcy

ANN ARBOR, Michigan ( TheStreet) -- Borders ( BGP), the No. 2 bookseller in the U.S., filed for Chapter 11 bankruptcy protection Wednesday.

"It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company's lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term," the company said in a statement Wednesday.

Borders said it has identified about 30% of its national store network that is expected to close in the next several weeks.

Borders said it has received commitments for $505 million in debtor-in-possession financing led by GE Capital while operating under Chapter 11.

-- Written by Joseph Woelfel

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