Borders files for Chapter 11 protection

ANN ARBOR, Mich., Feb. 16 (UPI) -- U.S. bookseller Borders Group said Wednesday it had filed for Chapter 11 bankruptcy protection, but would operate its stores as usual for now.

In an online statement, the national bookstore chain said, "We have determined the best route to undertake the necessary reorganization of our business is through the filing of a petition for reorganizational relief under Chapter 11 of the Bankruptcy Code."

Without specifying a number, the company also said, "We will be closing underperforming stores within our network over the next several weeks."

The bookstore chain, based in Ann Arbor, Mich., has been struggling to keep up with competition from the Internet, which can deliver books, news, movies and music at the click of a button.

Borders said its stores were "open for business."

"We will continue to provide our customers with a vast assortment of books in a warm and relaxing environment -- and we intend to build on this," the firm said.

The company said Borders Rewards Plus, its purchasing reward program, remained intact. Stores would also continue to honor gift cards, the statement said.