After announcing last month that its planned reorganization under bankruptcy just wasn’t going to cut it, teen retailer Aeropostale began prepping to auction off its assets. Now, the company appears to be nearing a deal with a private equity firm. 

Reuters reports that Aeropostale has negotiated a potential sale to Versa Capital Management — the same company that owns recently bankrupt sporting goods retailers Eastern Mountain Sports, Bob’s Stores, and Sport Chalet, and purchased fellow teen retailer Wet Seal last year.

It’s unclear how much Versa is in talks to pay for Aeropostale, but the deal will reportedly allow the retailer to keep its more than 500 locations open.

The planned auction for Aeropostale begins Aug. 8.  Any deal between Versa and the chain could set a starting bid price for other potential buyers, Reuters reports.

Neither Aeropostale, nor Versa provided comment to Reuters.

The deal, which could fall apart before the scheduled auction, is reportedly contingent on Aeropostale reimbursing Versa for any expenses it may incur through the negotiation process.

Aeropostale first filed for bankruptcy in May, after months of rumors suggesting the retailer would do so.

The same day it filed paperwork, the company accused one of its lenders, Sycamore Partners, of pushing it into bankruptcy in the first place.

Upon filing for bankruptcy in May, Aeropostale accused Sycamore of instructing a company it controls to cut off the teen chain’s credit. Instead, Aeropostale claims, the company demanded money for goods up front instead after delivery.

That demand pushed Aeropostale farther down the bankruptcy path, the company said in court papers, all because of Sycamore’s machinations.

Bankrupt teen retailer Aeropostale is thinking of selling to a private equity firm [Reuters]

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