Borders Group has filed for bankruptcy. The company has opened a special website about the bankruptcy proceeding. Kobo has assured readers that despite the bankruptcy, “your ebook library is perfectly safe.”

Borders Group president Mike Edwards had this statement: “It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term. To position Borders to remedy this condition, Borders Group, with the authorization of its board of directors, has filed a petition for reorganization relief under Chapter 11 of the Bankruptcy Code. This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term.”

According to the president, GE Capital will provide $550 million in Debtor-in-Possession financing to “enable Borders to meet its obligations going forward so that our stores continue to be competitive.” Editor’s note: This post has been updated as the story evolved.