Aéropostale Inc. is preparing to file for bankruptcy protection this week and close more than 100 stores, according to people familiar with the matter, as the teen-apparel retailer contends with mounting losses and falling sales.

New York-based Aéropostale plans to seek chapter 11 protection in the next few days before May rent payments are due, the people said. It is in advanced talks with specialty lender Crystal Financial LLC on a loan to finance its operations in bankruptcy, they added.

The retailer would close more than 100 of its roughly 800 stores soon after filing and potentially more later, the people said. The company plans to reorganize around its remaining stores, but the precise contours of its restructuring plan remain unclear, they added.

A number of mall-based specialty retailers have filed for bankruptcy in recent years as declining mall traffic, changing consumer tastes and competition from “fast-fashion” chains like Hennes & Mauritz AB and Fast Retailing Co. ’s Uniqlo eat into their sales.

Teen retailer Pacific Sunwear of California Inc., known as PacSun, sought bankruptcy last month, citing the “shifting retail landscape.” In 2015, women’s formalwear retailer Cache Inc., teen-focused Wet Seal and surfwear seller Quiksilver Inc. filed for chapter 11 protection.