After weeks on end in trying to save the business from sluggish trading and debt, US bookstore chain Borders has filed for bankruptcy protection, which will see it close about a third of its stores over the next few weeks.

Borders group president Mike Edwards said to remedy the position of the company, it has filed a petition for reorganisation relief under Chapter 11 of the US Bankruptcy Code.

“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,” he said.

“This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term.”

Borders has received US$505 million (A$508.3 million) in debtor-in-possession financing from GE Capital to help it meet obligations going forward and allow it to remain competitive.