Forever 21 May Be Planning To File For Bankruptcy

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Forever 21 May Be Planning To File For Bankruptcy
According to several reports out Friday, the fashion retailer is considering filing for bankruptcy.
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Forever 21's days might be numbered after all.

According to several reports, the fashion retailer is considering filing for bankruptcy.

Sources told CNBC and Bloomberg Forever 21's efforts to restructure its debt have hit a wall. Bloomberg says the company is trying to secure a so-called debtor-in-possession loan that would help fund a Chapter 11 bankruptcy filing.

Forever 21 has more than 800 stores in 57 countries. If the retailer does file for bankruptcy, it would be able to get rid of locations that aren't profitable and revamp the business.

Traditional retailers like Forever 21 have been struggling as younger customers shift their focus from mall visits to online shopping. Wet Seal, American Apparel, Delia's and Aeropostale have all filed for bankruptcy in recent years.

Additional reporting from Newsy affiliate CNN.