Remaining employees of Borders Group Inc will be spared being laid off as the company reached a deal with its lenders that would avoid closing more stores.

Borders Group said in a court filing late Wednesday that a tentative deal with lenders will avoid closures of more than three dozen stores.

In a court filing the bookseller said it had reached a deal with lenders to modify terms of its bankruptcy financing and avoid the store closures. Borders said it hoped to "finalize an agreement...in the very near term."

The court would have to approve the said alterations in its corporate restructuring and rehabilitation documents. Borders said it "engaged in extensive negotiations" with lenders and its official creditors committee to modify the company's financing agreement. The creditors committee includes large publishers, landlords and others.

Borders wanted to avoid further store closures that might rattle publishers and suppliers, and in effect foil discussions with possible investors, private equity firms Gores Group and Najafi Co.

Employees of other retail stores now under Ferrier Hodgson-the Angus&Robertson bookstore chain-- are not as lucky as the companies announced further job cuts to get by and reach settlement with their respective bank creditors.

Closures of the various chain stores under Ferrier Hodgson's Colorado brand stores and Angus&Robertson branches will affect more than a thousand employees across Australia in the next three months.

Forty-two shops of the Angus&Robertson will close shop by next month and this will affect 519 people-one-fifth is holding full-time positions.

In a related report on ABC News, Administrator John Melluish of Ferrier Hodgson said 315 staff would be affected by the closures, which would take place over the next month or so.

The report said Mr Melluish confirmed that all employee entitlements would be paid in full to staff made redundant.

"Our ability to pay full entitlements is a direct result of the untiring efforts of the Angus and Robertson staff who worked under very difficult circumstances to keep the business going," he said.

"As a result of their efforts, I can confirm that all entitlements will be paid out of the proceeds of the sale of the remaining inventory."

The payment of staff entitlements before the administration date depended on how much was made from sale of the stores' stock.

At a meeting on March 3, creditors were told REDgroup owed at least $118 million.

REDgroup had just $1 million in the bank but employee entitlements totalled $7.8 million.

The final Borders stores - four in Melbourne, two in Queensland and one each in Canberra, Sydney and Perth - are expected to close on July 17.