Brooks Brothers could reportedly find itself in bankruptcy as soon as July as it continues to look for a buyer for its two-century-old apparel business.

The retailer has been in talks to raise debtor-in-possession (DIP) financing for a possible bankruptcy filing after closing all its stores amid the coronavirus pandemic, sources for CNBC said. It was unclear at the time of writing how much DIP financing Brooks Brothers was looking to secure.

Brooks Brothers has been exploring a sale since earlier this year and has had significant interest, but to finalize a deal, the company may need to file for bankruptcy, the sources said. A sale without bankruptcy is also reportedly possible.

Through a bankruptcy filing, Brooks Brothers could close some of its 500 global stores, depending on the amount of the DIP loan, which would allow the company to sell a smaller portion of its stores, the sources told the news outlet. I

If Brooks Brothers does file for Chapter 11, it is expected that a stalking horse bidder would lead the bankruptcy auction, the sources said. The company has hired P.J. Solomon to explore a potential sale or bankruptcy filing, CNBC said.

Brooks Brothers would join retailers Neiman Marcus, JC Penney, Stage Stores, Tuesday Morning, and J. Crew in filing for bankruptcy protection during the coronavirus pandemic.

Brooks Brothers
A view of Brooks Brothers storefront closed during the COVID-19 crisis on May 6, 2020, in Vancouver, Canada. Getty Images/Andrew Chin