Aeropostale preparing for bankruptcy as soon as this month

April 21 (Reuters) - Struggling teen apparel retailer Aeropostale Inc is preparing to file for bankruptcy as soon as this month, Bloomberg reported, citing people familiar with the matter.

Shares of Aeropostale were halted, pending news, after falling 27.7 percent to a record low of 15.1 cents in afternoon trading.

SEE ALSO: The Diet Coke can has become completely unrecognizable

The company is looking to reorganize under Chapter 11, Bloomberg said, citing the people.

The retailer is trying to work out a loan to finance its operations during the bankruptcy process, and a deal to avert a filing or find a buyer could still emerge, Bloomberg said.

An Aeropostale spokeswoman declined to comment to Reuters.

The company said in March it was exploring strategic alternatives, including a sale, citing a dispute with MGF Sourcing US.

MGF is an affiliate of private-equity firm Sycamore Partners, which had thrown a lifeline of $150 million to the struggling apparel retailer in 2014 and previously owned an 8 percent stake.

Related: Also see the top retail brands for millennials: