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Borders Files for Bankruptcy

Better use those gift cards quick. Borders Group Inc., which controls Borders, the second-largest bookstore chain in the U.S., filed for bankruptcy protection and will close 200 of its stores, according to the company. The long-awaited decision came after years of dwindling sales due to competition from rival Barnes & Noble Inc., as well as the rising popularity of e-readers. As of December 25, the company had liabilities of $1.29 billion and assets of $1.28 billion, according to documents filed on Wednesday with the U.S. Bankruptcy Court in Manhattan, as well as net losses of $680.6 million since the beginning of its 2007 fiscal year. About 6,000 jobs will be lost from the closing of 200 superstores. Currently, Borders operates 642 stores, including 500 superstores.