Struggling fast-fashion retailer Forever 21 is in talks to liquidate its 360 U.S. stores as it weighs the possibility of a second bankruptcy.

The retailer, a unit of Catalyst Brands, is in talks with liquidators about future steps, which could see it shutter for good and pay creditors back with the proceeds, CNBC reported, citing unnamed sources.

The U.S.-based operator of Forever 21 could file bankruptcy as soon as next month, Bloomberg reported, a plan that could lead to the closure of at least 200 locations. If it files for bankruptcy, Forever 21 could also seek a buyer for its remaining stores or liquidate the chain entirely, according to Bloomberg.

Many of the stores targeted for closure have been losing money, and Catalyst has been withholding royalties and rent payments to keep some locations afloat, Bloomberg reported.

“Forever 21’s operating company, which is the brand licensee in the US, continues to explore strategic options, including a potential sale, while also reducing costs and optimizing its store footprint,” a Catalyst Brands representative told Bloomberg in an email. “The efforts are ongoing and no final decisions regarding the outcome of the process have been made.”

So far, Forever 21 has struggled to find a taker as it battles the rise of online competitors like Chinese brands Shein and Temu, higher tariffs and a loss of a cool factor among shoppers, CNBC reported.

The news comes two weeks after The Wall Street Journal reported the retailer was considering bankruptcy — its second since 2020 — with its restructuring advisor BRG.

When Forever 21 last went bankrupt, it was bought out by mall giants Simon Property Group and Brookfield Corp. and Authentic Brands Group. The retail chain was run by Simon and Authentic Brands under the umbrella of Sparc Group, which last month merged with JCPenney to form Catalyst Brands.

Under the Catalyst umbrella, JCPenney also operates brands like Aéropostale, Brooks Brothers, Eddie Bauer, Nautica, Stafford and Liz Claiborne. But Forever 21 was left out of the merger.