J.C. Penney Co. has hired bankers at Blackstone Group LP for advice on how the department-store chain can shore up its fast-eroding stockpile of cash, the Wall Street Journal reported today. Bond analysts do not think Penney's operations will be able to generate enough cash to cover the company's needs beyond a year, putting pressure on new Chief Executive Myron "Mike" Ullman to cut costs and look for ways to raise new capital even as he tries to get more shoppers into stores. The company is seeking to raise about $1 billion in cash. One option could be to sell a minority stake in Penney, and the company has reached out to and heard from possible investors including private-equity firms.
