Borders files for Chapter 11 bankruptcy protection - wave3.com-Louisville News, Weather & Sports

Borders files for Chapter 11 bankruptcy protection

ANN ARBOR, MI (WAVE/AP) - Two well-known bookstores in Louisville will soon be closed. Borders Group is filing for Chapter 11 bankruptcy reorganization after a long struggle to stay afloat as the book and music businesses changed beneath its feet.

The 40-year-old company plans to close about 30 percent of its stores, or about 200, over the next few weeks.

Two Borders stores will close in Louisville: the downtown location and the Hurstbourne Lane store. Both of those stores are corporate-owned. The remaining locations - Bardstown Road and Shelbyville Road - are franchises and will remain open for now. 

The company will receive $505 million in so-called debtor-in-possession financing from GE Capital and others to help it reorganize.

Big-box bookstores have struggled as more people buy books online, in electronic form or at grocery stores or discounters such as Walmart.

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