According to The Straits Times, an error was found in the cheque issued to Borders' landlord, Wheelock Properties, who as a result, took over the retail space.
"Rental for the month of August had not been paid in part due to an administrative discrepancy in the cheque issued to the landlord," Borders said in a statement.
"Although a cashier's order was then subsequently drawn, the Landlord, having reentered the premises, was unwilling to reverse the actions it had already taken.
"The Company is therefore unable to reopen its store in Wheelock Place which it has occupied for the last 13 years," a spokesman said.
Borders' tenancy at the Orchard Road shopping mall will end on 23 Aug and it will be holding a book sale to clear its stock.
Its premises was first closed on 16 Aug, to the confusion of many customers who wondered what had happened to the store.
The staff assured customers that the shutter could not be opened due to a technical glitch and that business would resume the next day, reported Asiaone.
Borders has said that the recent closures of stores in Australia and US after the filing of bankruptcy protection are not linked to the incident here in Singapore.
The other Borders branch at Parkway Parade will remain open.