Borders Group Inc., the series two U.S. bookstore chain, filed for bankruptcy protection on Wednesday in New York. In the face of competition from Inc. and Wal-Mart Supplies Inc. and after failing to secure agreements with publishers and other vendors about reorganizing its debt Borders went for this disaster.

The 40-year-ancient chain listed $1.29 billion in debt and $1.27 billion in assets in a filing in federal bankruptcy court in Manhattan.  Border’s marketplace value is shrunk by $3 billion since1998. Borders’s initial e-commerce site debuted in 2008.

Borders’ president, Mike Edwards stated “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.”

Based in Ann Arbor, Mich., Borders had 642 stores across the country. It had 6,100 full-time employees, 11,400 part-time employees and about 600 contingent workers.

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