The Borders store at Sanbusco Market Center will close in a few weeks as a result of the company's bankruptcy filing Tuesday.

"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," said Mike Edwards, Borders Group president, in a statement explaining the Chapter 11 bankruptcy filing in New York City.

At the same time as the filing, Borders said it would close 30 percent of its retail stores, about 200 stores around the United States.

In addition to the store in Sanbusco, an Albuquerque Borders on Coors Bypass will also shut its doors.

The Santa Fe store employs 32 people, a Borders spokesman said, while 25 people work at the Albuquerque store. The stores are expected to close in the next few weeks.

Sanbusco owner and developer Joe Schepps has had Borders as the anchor tenant at the center for the last 13 years. The bookstore occupies almost 25,000 square feet in Sanbusco, making it the largest tenant.

Schepps said he has known "something was cooking" with Borders' finances for the past two years and that the struggling company's bankruptcy was not unexpected.

But he said he was surprised that the Sanbusco Borders is closing, as it "was a much stronger store" than the one on Zafarano Drive that is remaining open.

Schepps also said that for some time he has been receiving calls from interested retailers who want to lease space in Sanbusco.

He declined to name any prospective tenants.

But he did say, "I feel confident that with our existing tenant base, we will be able to rent the space quickly."

Dorothy Massey, owner of Collected Works Bookstore, said she was sad to hear about any business closing its doors in these tough times.

She added: "I would be delighted if any Borders customers would give us a try."

Massey also had kind words for Schepps, who has been "a good friend and a good competitor who has done wonderful things for downtown Santa Fe."

Edwards also said Borders has received commitments for $505 million in debtor-in-possession financing led by GE Capital, Restructuring Finance.

"The financing should enable Borders to meet its obligations going forward so that our (stores) continue to be competitive for customers in terms of goods, services and the shopping experience," Edwards said in the statement.

In its bankruptcy filing, Borders listed assets of $1.28 billion and liabilities of $1.29 billion as of Dec. 25, 2010.

The company's five largest unsecured editors are book publishers Penguin Putnam Inc. ($41.1 million); Hachette Book Group ($36.9 million); Simon & Schuster Inc. ($33.75 million); Random House ($33.5 million); and Harper Collins Publishers ($25.8 million).

Borders will continue to honor its Rewards program members, gift cards and other customer programs. The company also expects to meet its payroll and continue its benefit programs for employees, the statement said.

Edwards said Borders Group will now be able to build a "solid plan of reorganization and implement a new business model to address the changing needs of the American reader."

Edwards added: "Borders has the ability, based on our brick-and-mortar presence nationally; the online capabilities we have in place; the loyalty of our customers; and the product and services we offer to be an important destination ... for readers across the country."

Borders has been hurt by its competition with such vendors as Internet-only retailer Amazon.com and the growing success of digital books and e-readers, observers say.

Some analysts are skeptical that Borders has come up with a viable plan for going forward.

"They are going to have to be an entirely different company than the one that went into bankruptcy protection if they want to emerge successfully," said Jim McTevia, managing partner of turnaround firm McTevia & Associates in Bingham Farms, Mich.

Information from The Associated Press was used in this report.