Fashion retailer Forever 21 Inc is preparing for a potential bankruptcy filing, Bloomberg reported earlier this week, 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.

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.