The clothing giant, Forever 21, is exploring the possibility of restructuring despite the difficulties of selling

Forever 21 is currently exploring restructuring options to boost liquidity as the fast-food giant struggles with its business, a person familiar with the situation said on Monday.

The company is in talks with private equity firm Apollo Global Management about the collection of debtor-operator funds to provide financing in case of bankruptcy, said the manager. The person warned that no decision had been taken yet.

The talks come as the apparel industry continues to struggle against a backdrop of radical changes, including new purchases online. Many of the more distressed retailers, such as Forever 21, are located in shopping centers, where fewer consumers spend their money. Faced with declining sales, companies are still weighed by the size and high cost of stores, even as retailers must invest in technology to counter the competition of new brands created online, like Lulus.

Forever 21 has more than 815 stores in the United States and around the world.

Teen clothing retailers have been particularly vulnerable to the disruption of retail sales. A number of them have declared bankruptcy in recent years, including Aeropostale, Rue21 and American Apparel.

Last week, many clothing retailers reported disappointing earnings, which has not been as disappointing since the Great Recession. As a group, the first quarter results of clothing retailers are down 24%, according to an analysis by Retail Metrics. The last time the group's results were as bad, it's the first quarter of 2008, when they dropped 40%, said Retail Metrics.

The person requested anonymity because the information is confidential. A spokeswoman for Forever 21 told CNBC that the company "speaks with our lenders in the normal course of business, respects all our agreements and continues to function normally". Apollo refused to comment.

Bloomberg first reported restructuring exploration earlier Monday.