Aeropostale will file for bankruptcy as early as this month, according to a report from Bloomberg, citing people close with the matter.
The company is attempting to avoid the bankruptcy by finding another firm to purchase it, which it has been exploring since March.
The teen-focused retailer has been facing financial trouble for some time as sales and profits have dropped off. The company reported in March that comparable sales were down 6.7% year over year.
The brand has fallen out of favour with teens and the company has attempted to revive the brand by enlisting Youtube stars and starting a blog to attract their target audience.
The New York Stock Exchange has also issued a warning to the company that its share price was dipping so low that it may be de-listed. The stock is down 14% after the report at $0.18 a share.
More to come…