ANN ARBOR, MI-Borders Group Inc., based here, has asked a bankruptcy court in New York City to allow it to close more stores if the company isn’t able to work out new leases. The company originally asked in a motion last week to close 51 stores, though attorneys have already begun pulling certain sites off the list as deals are worked out.

The company said in the filing that if the leases aren’t changed or extended, the company must clear out the inventory and liquidate the stores, per a $505 million debtor-in-possession lending agreement from GE Capital.

The company announced in February that as part of the Chapter 11 bankruptcy it would close more than 225 stores countrywide, about 30% of its total 642 stores in the US and Puerto Rico. Most of these that have since closed were deemed by the company to be underperforming. However, most of the 51 listed in the recent filing are “among the most profitable in the portfolio, or have leases which are under market,” according to the motion. The court is supposed to hold a hearing on the motion on June 20.

Borders attorneys said in the filing that the company has worked to obtain extensions of the leases, and has received these extensions for nearly 365 stores. Included in the list of the 51 stores were eight locations in New York, five in California and five in Michigan, though some of these leases have been removed from the list already.

The company is pressing forward with a hopeful sale of the company, and two suitors, Los Angeles-based Gores Group and Phoenix-based Najafi, are reportedly interested. Also, the company is still looking for a new location for its headquarters in the Southeast Michigan area.

Farmington Hills, MI-based Agree Realty, which owns the 500-employee headquarters and 11 Borders stores, recently said it had good news about its 20% rental income through the book company. President and CEO Joey Agree said the firm has signed a 10-year lease with Vitamin Cottage Natural Food Markets Inc. in a former Borders location in Wichita, KS. “Our asset management team has worked diligently to quickly re-tenant this asset,” Agree said in a statement.

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