08/29/2019 10:13 EDT | Updated 08/29/2019 11:40 EDT

Forever 21 Bankruptcy Filing In The Works: Report

No word yet on whether or not stores are closing.

(Reuters) ― Fashion retailer Forever 21 is preparing for a potential bankruptcy filing, Bloomberg reported on Wednesday, citing people with knowledge of the plans.

The company has been in talks for additional financing and is working with a team of advisers to help restructure its debt, but negotiations with possible lenders have so far stalled, Bloomberg reported.

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LONDON, UNITED KINGDOM - 2019/08/09: Shoppers walk past a branch of Forever 21 store in central London. (Photo by Steve Taylor/SOPA Images/LightRocket via Getty Images)

Forever 21 is looking to secure a potential debtor-in-possession loan to take the company into Chapter 11, even as some window remains to strike a last-minute deal, the report added.

The company did not immediately respond to a Reuters request for comment.

(Reporting by Rama Venkat in Bengaluru; Editing by Maju Samuel)

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