Private equity firm Gores Group is in discussions to purchase more than half of Borders Group Inc.’s remaining stores out of bankruptcy, according to a news report.

People familiar with the negotiations told the Wall Street Journal late Wednesday that the proposed deal by the investment company led by Los Angeles billionaire Alec Gores would keep the Ann Arbor, Mich.-based bookstore chain from going out of business.

Amid mounting losses as Amazon.com and other online book seller lured away customers, Borders filed for Chapter 11 bankruptcy protection in February. To cut costs, the company recently closed 226 stores, including 12 in Los Angeles County.

Among Gores Group’s other holdings are stakes in Westwood One, a radio station operator, and Alliance Entertainment, a wholesale distributor of CDs and DVDs.