Beleaguered company, J. C. Penney Co Inc., has engaged the services of  Blackstone Group LP's financial advisory arm for their expertise on how to best position the firm financially, according to inside sources.

According to the Wall Street Journal, J.C. Penney aims to raise $1 billion in cash, and among the options would be selling a minority stake. In fact, the company has been in contact with several private equity firms about a potential investment, sources said.

However, key investor William Ackman has said shareholders were willing to put up additional capital. Ackman's hedge fund Pershing Square Capital Management owns an 18 percent stake in J.C. Penney

J.C. Penney's other big shareholders included Dodge & Cox, State Street Global Advisors, Fidelity and Wellington Management.

The prospect of additional funding should appease J.C. Penney investors who rattled over the company's decision to let go of Ron Johnson as CEO after a failed turnaround. Joining Penney in November 2011, Johnson had tried to upgrade the store's merchandise and streamline its pricing structure but his strategy failed.  After Johnson left, he company brought back Johnson's predecessor Myron Ullman.