The bookstore chain Borders announced that it is filing for Chapter 11 bankruptcy protection. It will be closing about one third of its bookstores.

Shrinking sales and rising debt have both played huge roles in the book giant’s decision. It is the second largest book store in the United States, following Barnes & Noble. The bankruptcy filing is expected to provide the company with an opportunity to undergo a complete overhaul.

Digital books and online stores have played another role in the closing of Borders.

Experts are not sure of the chance of survival for Borders, considering the growth of rival Barnes & Noble, online retailers like Apple Inc. and Amazon.com, and discount sellers like Wal-Mart and Costco, who provide the same bestsellers for a lower price.

According to Mike Edward, president of Borders, the company “does not have the capital resources it needs to be a viable competitor.” By filing for bankruptcy they will be able to manage debt and still operate a limited number of franchise locations.

According to the documents filed at the U.S. Bankruptcy Court, Borders owned $1.28 billion in assets and $1.29 billion in liabilities at the end of 2010.

6,000 jobs are speculated to be affected by this bankruptcy filing.