After years of flagging sales, bookstore giant Borders announced today that it has filed for Chapter 11 bankruptcy. “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,” reads a press release on the company’s website,
which states that Borders plans to close 30 percent of its stores and focus on improving its eBook sales, along with other cost-cutting measures. On a site set up specifically to address customer concerns about its financial reorganization, Borders says that its stores and Web site will continue to operate normally, and that the company will still honor gift certificates and coupons from its loyalty programs. The company made its financial troubles public last December, when it announced that it was delaying payments to certain vendors in order to save money. The Associated Press reports that Borders currently owes $41.1 million to Penguin Putnam, $36.9 million to Hachette Book Group, $33.8 million to Simon & Schuster and $33.5 million to Random House.