J.C. Penney Co Inc has approached consulting firm AlixPartners LLP as the U.S. retailer looks at options for managing its debt.

Brick-and-mortar retailers are struggling to keep up with the shift to online shopping, and the crisis has been exacerbated by the coronavirus outbreak that has forced them to shutter stores and furlough employees.

J.C. Penney has been in talks with lenders in recent weeks about its liquidity needs and is negotiating a possible debt deal.

The company also furloughed a majority of its hourly staff and salaried associates last month, as it was forced to extend closures due to the health crisis.

The retailer had $3.72 billion in borrowings as of Feb. 1, its latest annual filing showed, with cash and cash equivalents of $386 million. Its 2019 sales fell 8% to $10.72 billion compared with the previous year.

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