Borders bookstore has gone into administration after falling sales levels.

Administrators MCR has announced that bookstore chain Borders has gone into administration, putting 1,150 jobs at risk.

All 45 Borders and Books Etc stores across the UK will remain open while MCR looks for a buyer.

Borders has been struggling in recent months due to increased pressure from internet competition and supermarkets as well as deteriorating conditions in the retail market.

Sales levels at the bookshop have fallen below levels recorded a year earlier, which has put pressure on the retailer’s cash flow and supplier credit. A number of credit insurers have also reduced cover to the firm.

Phil Duffy, Administrator of Borders, said: “All stores 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.”

There has been speculation that Waterstones owner HMV was interested in purchasing some of Borders stores but the company today (27 November) refused to comment.

Borders stores first opened in Britain in 1997 and were originally owned by the US company of the same name but was sold in 2007 to Risk Capital Partners. It is currently owned by private equity firm Valco.