Over 7,000 store closures have already been announced in 2019.

Another women's clothing store chain is reportedly close to filing for bankruptcy protection.

Teen retailer Forever 21 Inc. is preparing for a potential filing as expiration options fade, Bloomberg reported Wednesday, citing people with knowledge of the plans.

According to Bloomberg, Forever 21 hired a team of advisors to help restructure the debt and has been in talks for additional funding, but negotiations with potential lenders have stopped,

Forever 21 did not immediately respond to US TODAY's request for comment.

The filing of Chapter 11 bankruptcy protection often involves some closures of stores, as retailers appear to break leases on money-losing stores and slash loans. The goal is typically to create a reorganized, often smaller, company that can get a fresh start.

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Eric Snyder, a partner in New York-based law firm Wilk Auslander, said the immediate case is with the word about The bankruptcy that leaks credit will dry up until they secure a debt-financed financing.

With 815 stores, many in unwanted malls, a bankruptcy filing gives Forever 21 the power to either renegotiate rent, something landlords are more than willing to do in this retail environment, or reject leases and release responsibility for unprofitable stores, "he said. Snyder, who is chairman of the company's bankruptcy department.

There has been a wave of recent bankruptcies and announcements of store closures.

Earlier this month, luxury retailer Barneys New York announced that it is filing for bankruptcy, and it would close 15 of its 22 locations. [19659018] Plus retailer Avenue filed for Chapter 11, August 16 and will close its 222 locations.

In July, jewelry sales and accessories retailer Charming Charlie filed and announced that it will close its 261 stores.

Follow Kelly Tyko on Twitter: @KellyTyko

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