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AnnArbor.com photo

The Borders Group corporate office in Ann Arbor, Michigan. The company operated 642 stores in the U.S. and Puerto Rico.

Battered by a rough economy and competition from internet retailers Borders Group finally succumbs to bankruptcy after running out of cash and financing options.  "Lucky to get back 25 cents on the dollar."

Borders Group, Inc., a $2.3 billion specialty retailer based in Ann Arbor, Michigan, and seven of its subsidiaries filed for Chapter 11 bankruptcy last Wednesday in the United States Bankruptcy Court for the Southern District of New York.  Borders is the nation's second largest brick-and-mortar retail bookseller behind Barnes & Noble, Inc., which had 2010 sales of $5.8 billion.  Amazon.com, an online bookseller, is the largest with $34.2 billion in sales.