J.C. Penney has hired the Blackstone Group to help it raise much-needed cash, a person briefed on the matter said on Thursday, as the embattled retailer tries a turnaround after replacing its chief executive.
The long-struggling company is seeking to revive its battered fortunes with greater urgency after the disastrous 17-month tenure of Ron Johnson, the former head of Apple’s retail operations, as chief executive.
He was fired on Monday and replaced with Myron E. Ullman III, his predecessor on the job.
Mr. Ullman has returned to a retailer in even worse shape than when he left in late 2011. Once profitable, if having lost ground to rivals like Macy’s and Kohl’s, Penney is now deeply immersed in red ink.
And the future of an expansive â€" and expensive â€" overhaul that Mr. Johnson oversaw is now in question.
Analysts have estimated that Penney could burn through up to $1 billion this year. It is unclear how the company and Blackstone’s advisory arm will seek to raise the money, though potential options could include selling additional equity or some of the real estate that the retailer owns.
In a statement, a J.C. Penney spokeswoman acknowledged the hiring of “outside advisers†to help the retailer assess its financial options. “This will continue as part of the work now underway to develop a game plan for the company going forward,†the spokeswoman added, declining further comment.
News of Blackstone’s hiring was reported earlier by The Wall Street Journal online.
