Borders may file for bankruptcy next week

The second-largest bookstore chain has been struggling to get refinancing and convince publishers and other vendors that it remains a viable concern. But Bloomberg quotes three sources as saying that it's getting closer to Chapter 11 protection. As part of any restructuring, one source said, at least 150 stores would likely close (the retailer has around 650 locations).

The retailer received a financing commitment of $550 million from the General Electric unit on Jan. 27. The funding had several conditions including securing $175 million from other lenders and $125 million in junior debt provided by vendors and lenders. The funding is also contingent on Borders completing a program to close stores.

Not that it much matters, but Borders stock fell 36 percent, the largest decline in more than two years. Shares are now trading at 47 cents.