Borders may need to close 51 more stores

It's either that or risk defaulting on bankruptcy loans. Borders is trying to get a waiver on its financing terms with lenders that would forestall the closings. Meanwhile, the company proposes a hearing in late July on the sale of the entire business. Among those in the hunt is L.A. billionaire Alec Gores. Closing additional stores would make any sale problematic because Borders already has shuttered the less profitable locations. Pretty soon they'll run out of real estate. From the WSJ:

In addition, the closures would lead to a "significant loss of jobs," the company said. Borders currently employs roughly 11,000 people, according to court papers, down from more than 19,000 when it sought bankruptcy protection. Borders' predicament stems from financing conditions that require the bookstore chain to start closing stores months ahead of a deadline for assuming or rejecting leases. Borders has a Sept. 14 deadline for deciding which remaining stores to keep or close.