Signage is seen on a shopping cart inside a J.C. Penney Co. store in Peoria, Illinois.

J.C. Penney has hired advisers to explore debt restructuring options that would buy more time for the money-losing U.S. retailer to forge a turnaround, people familiar with the matter said on Thursday.

The 117-year-old department store chain's move represents a high-stakes attempt to get its financial house in order before its cash coffers dwindle and its debt, totaling roughly $4 billion, comes due in the next few years.

The Plano, Texas-based company faces fierce competition from discount retailers such as the TJX Companies' Marshalls and T.J. Maxx chains, and J.C. Penney has struggled to boost the profile of its e-commerce business to rival established players such as Amazon.com.

While J.C. Penney has more than $1.5 billion available under a revolving credit line, investors have continued to sell off the retailer's shares in response to financial losses. Its credit rating is deep in junk territory, increasing its borrowing costs.

J.C. Penney has in recent weeks held discussions with lawyers and investment bankers who specialize in advising troubled companies on debt restructurings and other financial workouts, some of the sources said.

The retailer, which employs 95,000 people and operates more than 860 stores, is exploring options that could include raising additional cash or negotiating with creditors to push out debt maturities, these sources said.

J.C. Penney's restructuring plans are at an early stage, one of the sources cautioned. The discussions with restructuring specialists reflect J.C. Penney's resolve to take steps in coming months to increase its financial breathing room and avoid confronting a potential bankruptcy filing down the road, the source added.

The sources requested anonymity because the deliberations are confidential.

The deteriorating retail landscape has forced longstanding brick-and-mortar chains, including Toys "R" Us Inc and Sears Holdings, to seek bankruptcy protection in the last two years. Some retailers had to liquidate. Others, such as Neiman Marcus and J. Crew Group, have managed to avoid such a reckoning by reaching agreements with creditors to restructure their debts.