Report: Borders could file for bankruptcy next week

New York City -- Borders Group may file for bankruptcy reorganization as early as Monday or Tuesday after failing to persuade publishers and others to go along with a plan to refinance the struggling chain's debt, according to the Wall Street Journal.



The retailer plans to initially close about 200 of its 674 stores, the report said, which cited unnamed sources.



Borders has spent recent days finalizing a deal for debtor-in-possession financing that would keep the company operating while under bankruptcy-court protection, according to the report. It is hearing pitches from Bank of America Corp. and General Electric Co.'s finance arm for $450 million in financing.



Borders reported same-store sales at its namesake superstores fell 14.6% for the crucial holiday period this year.



Borders lacks a strong Internet presence. It also has also been playing catch-up in the rapidly growing e-book market. Its chief rival, Barnes & Noble, launched a dedicated e-reader, the Nook, in 2009, and has invested heavily in a related online store. Amazon.com's Kindle has dominated the e-reader market.



Borders received a commitment for a $550 million credit line from GE Capital in January. But it said at the time it was still considering an in-court restructuring.



The company received a delisting warning from the New York Stock Exchange last week.