(Bloomberg) -- The Container Store Group Inc. is preparing to file for bankruptcy in the coming weeks following mounting losses and escalating liquidity woes, according to people with knowledge of the plans.

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The storage and organizational-goods retailer will seek Chapter 11 protection with a plan in place for lenders to take control of the firm, said the people, who asked not to be identified discussing private negotiations.

Last month, The Container Store was in advanced talks with lenders to provide additional capital as it looks to resuscitate its earnings and growth prospects, according to a regulatory filing. But those conversations have since pivoted to restructuring talks, the people said.

The Container Store is working with Houlihan Lokey Inc. and FTI Consulting Inc. for workout and operational assistance, Bloomberg previously reported. A group of term loan lenders is working with Greenhill & Co., while its asset-based lenders retained Berkeley Research Group, said some of the people.

Representatives for The Container Store, Houlihan Lokey and FTI declined to comment. Representatives for Greenhill and Berkeley Research Group did not respond to requests for comment.

As of the end of September, the retailer had 103 stores across the US and $229.8 million in long-term debt, according to a quarterly financial report.

The Container Store’s fortunes dimmed after Beyond Inc., which owns retail brands including Bed Bath & Beyond, Overstock and Zulily, questioned the struggling chain’s ability to clinch a deal with its lenders that would satisfy the requirements for a $40 million preferred equity injection. The transaction required The Container Store to amend or refinance its credit facilities, public filings show.

The New York Stock Exchange moved to delist its common shares on Monday, according to a press release.

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