I believe this is true. The man who used to be the CEO of my company (Ron Marshall) left here to become the CEO at Boarders. They were in a sad situation before he went to them, and the situation did not improve. They over-built stores at a time when people's book buying habits dramatically changed.
Here is a bulletin board of people who have some stake or insight into Borders. It ain't pretty.
http://messages.finance.yahoo.com/mb/BGP