NEW YORK — Borders Group Inc., the second-largest U.S. bookstore chain, said Thursday that it would shutter more of its small-format Waldenbooks stores in January, including its last remaining local store at St. Louis Galleria mall, as it focuses on its more profitable superstores.

The company is closing 200 Waldenbooks and Borders Express stores and cutting 1,500 jobs in January to make the chain smaller and more profitable.

Borders, based in Ann Arbor, Mich., said the closings would leave about 130 stores in its Waldenbooks Specialty Retail unit, which includes Waldenbooks and Borders Express stores, still in business.

Mary Davis, PR manager for Borders Group Inc., said the company will make every effort to make places for its eliminated employees in its other stores.

Borders declined to provide details on the number of people employed at the Waldenbooks in the Galleria.

The company said the closing will not affect any Borders superstores or any of its mall kiosks, including 500 Day by Day Calendar Co. spots and other mall-based stores.

Borders has been slowly closing Waldenbooks. It shut down 112 stores in fiscal 2008 and an average of about 66 stores each year between fiscal 2001 through 2007.

Borders' chief rival, Barnes & Noble, based in New York, said last month that it would close all of its remaining 50 B. Dalton stores by the end of January.

But Borders said it expects a smaller Waldenbooks segment, with 130 stores, can be profitable.

"We believe there remains an opportunity to profitably operate a much smaller Waldenbooks segment that complements our core Borders superstore business and continues to serve readers in their communities," said Borders CEO Ron Marshall in a statement.

Previously purchased gift cards will be valid as long as the stores remain open and at any Borders, Waldenbooks or Borders.com, the company said.

Riya V. Anandwala of the Post-Dispatch contributed to this report.