Borders May Close 51 More Stores

Borders says it may have to close as many as 51 more stores as lenders put pressure on the bankrupt bookstore chain, the nation's second-largest.

In a court filing, Borders said the store closings may be necessary to remain in compliance with the company's bankruptcy financing. Among the possibly doomed stores are those at New York's John F. Kennedy Airport, and Penn Station, as well as Columbus Circle.

Borders filed for bankruptcy protection in February and closed more than a third of its stores since then. It currently operates about 400 outlets.

Borders said it wants to avoid closing additional stores and warned that many of the stores facing closure are among its most profitable. Closing those outlets would make the chain less attractive to buyers and further reduce sales, the company said.

The Wall Street Journal quoted Borders as saying it was "actively working" with its landlords and lenders to avoid the additional closures, which could lead to what the company termed "a significant loss of jobs." Borders now employs about 11,000 people, down from more than 19,000 at the time of its bankruptcy filing.

The current problem stems from the timetable under which Borders must begin breaking leases and scheduling going-out-of-business sales, which produce revenue for the chain's lenders.

Borders hopes to sell the entire business at auction, perhaps as early as July.