Pete Wahlstrom

The impending shutdown of Borders Group Inc. has spelled uncertainty for Canadian digital bookseller Kobo, whose partnership with Borders marked the chain’s too-little, too-late effort to cross over into the digital realm.

Borders was an early investor in Kobo and still holds an 11% stake in the Toronto-based company, which is also backed by majority shareholder Indigo Books & Music Inc., Cheung Kong Holdings and others.