Book chain Borders has gone into administration, insolvency and restructuring firm MCR has confirmed.
Borders, which has around 45 Borders and Books Etc stores across the UK, lodged a notice of intent to appoint administrators on Monday following the reported collapse of takeover negotiations.
The company is not taking orders on its website and has launched "closing down sales" at some stores.
Borders has struggled with "severe" cash flow pressure this year as sales falls accelerated, said administrators.
Stock levels were also hit as several of the company's suppliers stopped or reduced its credit limits, while a number of credit insurers have also reduced their cover for the firm.
Joint administrator Phil Duffy said: "All stores currently remain open for business as normal whilst the administrators undertake a review of the company's affairs and seek a purchaser for all or some of the company's stores in which there has already been interest.
"All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the administration."
He added that booksellers in general had been hit in the current weakened retail market, with competition on major releases from supermarkets and the internet.
Borders first opened in the UK in 1997 and was originally owned by the US book giant of the same name.
But the UK and Ireland arm was sold to buyout group Risk Capital Partners - headed by Channel 4 chairman Luke Johnson - in 2007. Management, led by chief executive Philip Downer and finance director Mark Little, then bought the group back with financing from Valco Capital earlier this year.
