Borders told a federal bankruptcy court Monday that it will close its remaining 399 stores and liquidate its assets, with store closings starting as soon as Friday.

Borders, once one of the giants of the book selling world, fell victim to what Borders Group President Mike Edwards called “the rapidly changing book industry, eReader revolution, and turbulent economy”. Borders had been looking for a buyer who would keep the stores open, but told the court that since it does not have a formal proposal from a group that wants to run the business, it will instead submit accept a proposal from Hilco and Gordon Brothers to buy the stores and liquidate them.

Borders, founded in 1971 in Ann Arbor, Michigan, filed for Chapter 11 bankruptcy in February, citing debt of more than $1.2 billion. The company employs more than 11,000 workers, who will all be laid off as Borders winds down operations. The company said it expects that process to last until late September and that all creditors will be paid.

In the last decade, Borders — once known as a killer of local bookstores — struggled to compete with Amazon.com’s low prices, huge selection and convenience — even going so far as relying on Amazon to handle its online store until 2008.

That fight grew more lopsided with the success of Amazon’s e-reader, the Kindle. Barnes and Nobles has some success keeping up with its Android-based Nooks, which have won many over — particularly women — thanks to its color version and wide magazine subscription offers. Borders’ last ditch attempt to compete in the e-reading world, the Kobo, never caught on with readers.

Borders’ proposal needs to be approved by the bankruptcy court, but that’s really just a formality.

The big box store for books is now clearly on the endangered species list.

And while it’s odd to say that its sad to see a giant chain store go out of business, but in this case, it’s true — even if it opens up the possibility that the only physical bookstores likely to remain in any number in the States are small independents.