More than 1,150 jobs hang in the balance following the announcement that UK bookshop chain Borders had been placed in administration, the Guardian has reported.
The company has 45 Borders and Books Etc stores across the UK. But it has come under severe pressure from internet competition during the past year and made a loss of £13.6m in 2008, up from £10.3m in 2007.
The report added that outstanding employee wages have been paid, while ongoing wages will be paid going forward as an expense of the administration.
On Tuesday, Borders suspended orders on its website.