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.

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