Forever 21 reportedly preparing for potential bankruptcy filing

Forever 21 is preparing for a potential bankruptcy filing, as the fashion retailer's cash dwindles and turnaround options fade, according to Bloomberg.

The outlet cited people with knowledge of the plans who say the company has been in talks for additional financing and working with a team of advisers to help it restructure its debt.

However, negotiations with possible lenders have so far stalled.

A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, sources tell Bloomberg.

Representatives for Forever 21 didn't respond to a request for comment.

Forever 21 operates more than 800 stores in the U.S., Europe, Asia and Latin America.