Teen retailer Forever 21 is preparing for a potential bankruptcy filing as it works to negotiate with lenders, according to reports from multiple media outlets.

According to one report, based on sources who spoke to Bloomberg News, the company has been in talks for additional financing to help it restructure its debt, but negotiations with possible lenders have so far stalled. Focus has thus shifted toward securing a potential debtor-in-possession loan to take the company into Chapter 11, the sources said.

In June ABL Advisor reported that the retailer had engaged Latham & Watkins LLP to help renegotiate leases with landlords and Alvarez & Marsal to overhaul the company’s operations.