The sale cited people with knowledge of the plans saying that the company has been in talks for further funding and working with a team of advisors to help it restructure its debt.
However, negotiations with potential lenders have hitherto stopped.
A bankruptcy filing would help the company shed unprofitable stores and recapitalize the business, sources tell Bloomberg.
Representatives of Forever 21 did not respond to a request for comment.
Forever 21 operates more than 800 stores in the United States, Europe, Asia and Latin America.