Borders faced with closing 51 more stores

ANN ARBOR, Mich. -- Borders Group said that it is faced with closing dozens of its best-performing stores due to a requirement of its bankruptcy financing if their landlords don't agree to extend a lease-negotiation period.

Borders, which filed for bankruptcy protection in February, has extension agreements for 365 stores. But the book seller said in a court filing Thursday that it is still negotiating extensions for 51 stores, many of which are among its top-selling stores, including one near Penn Station in New York.

The impacted stores are in 23 states and include 10 at airports across the country.

The company's special bankruptcy financing requires it to start closing the stores where it has not obtained extensions by June 22. But Borders said it has asked its lenders to waive that requirement until a hearing about the sale of the company on July 21. The lenders are considering the request, Borders said.

Borders said it is in discussions with several buyers who have indicated they would be interested in buying some of the stores the company might have to close. Liquidating the stores "may not maximize their value for the benefit of creditors and will result in a significant loss of jobs," Borders said in the filing.