Borders shares, which were already trading well below a dollar, fell 26 cents on reports of a possible Chapter 11 filing.
A Borders bankruptcy could come as early as this month, despite a recent $550 million cash infusion.
Consumer confidence remains at historically low levels, but retailers still expect a modest rise in holiday sales.
Borders will soon expand its Kobo line to include a Wi-Fi-powered device. But does the Kobo really stand a chance against the Amazon Kindle?
Tablet computers: Here's a list of all the tablets being talked about right now.
With Americans edging away from video rentals, Blockbuster may declare bankruptcy next month, it reportedly told Hollywood studios Thursday, closing as many as 20 percent of its stores.
Borders, now launching an e-bookstore, is late to the race.