(CNN) - Clothing retailer Forever 21 may be getting ready to file for bankruptcy.
FILE - In this Dec. 26, 2010 file photo, people walk past a Forever 21 store in New York's Times Square. The population of the U.S. has grown by 8 million people since the previous record was set. That means there were millions more shoppers in stores this Christmas, driving up the sales total. But the average amount of spending per person was down from a few years ago, suggesting consumers are still slower to pull out their wallets. (AP Photo/Mary Altaffer, file)
Bloomberg News is reporting that the company is preparing for a Chapter 11 filing.
Forever 21 has been working with consultants in an effort to restructure its debt. The company has also been trying to get additional financing, but so far, nothing has come through.
Bloomberg reports bankruptcy could help Forever 21's bottom line because it would be able to recapitalize and get rid of stories that aren't making money, but the move could cause problems for mall owners since the company has a significant presence in malls.
Forever 21 was founded in 1984 and currently operates more than 800 stores around the world.