The company's stock value has fallen and it is trying to raise money by selling some stores US bookseller Borders has delayed payment to some publishers to preserve cash as it struggles to refinance its debts.
The company has been trying to find new financing to avoid breaking the terms of its credit agreements.
Borders, which is the second largest bookseller in the US, has had its credit facility reduced because the value of its inventory has fallen.
News of the cash-flow problem sent its shares down 13% in after hours trading.
Company spokeswoman Mary Davis said that the firm would work with the publishers that supply it with books in order to restructure their payment arrangements.
Borders benefits from "vendor finance", by which suppliers provide the retailer with books for sale in its stores well in advance of receiving payment.
The company warned there could be "no assurance that it will be successful in refinancing its senior credit facilities or restructuring its vendor financing arrangements".
Borders' latest figures showed losses doubled for the third quarter.
The company has said that it is in talks with other possible lenders to replace its financing, and that it may sell some assets.
It is also closing down certain stores to improve its position.
The company's competitors include fellow books specialists Barnes & Noble, as well as the giant retailers Amazon, Wal-Mart and Target.
Borders was recently approached by an activist investor, William Ackman, who owns 37% of the company and offered to finance a bid for its much larger rival, Barnes & Noble.
The electronic book market, spearheaded by Kindle, is a new battleground, although Borders has launched its own e-bookstore.
Borders sold its UK business in June 2007 to a private equity group. It went into administration in 2009.
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