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NEW YORK (CNN/Money) -
Chapter 11* Bookstores learned there's a lot to a name this weekend.
The Atlanta-based independent bookstore chain filed for Chapter 11 protection in the U.S. Bankruptcy Court's Northern District of Georgia on Saturday, just days before a new bankruptcy law went into effect.
In a statement posted on its Web site, the bookstore operator said the filing is part of a reorganization plan aimed at strengthening its overall business. The plan also calls for the company to close five stores in the Atlanta area, as well as locations in Gainesville and Athens.
The bookstore operator said it would focus its resources on six stores in the metro Atlanta area. The stores that will remain open include locations in Peachtree Battle, Ansley Mall, Sandy Springs, Emory, Northlake/Briarcliff and Highland Plaza (Marietta).
The bookstore's online site, www.chapter11books.com, will not be affected by the closings, the statement said.
"It's unfortunate that we are having to file for reorganization, but we feel the stores we are keeping open will be successful," Chapter 11* President Perry Tanner said in a report published in the Atlanta Business Chronicle.
"We want to position the six stores still open to get them ready for Christmas. That's the make or break time for retail," he has said.
About 50 to 60 employees, some of them part-time staff, will be affected by the closings, Tanner said in the report.
Chapter 11* filed for bankruptcy just two days before a more stringent consumer bankruptcy law went into effect Monday.
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