Bed Bath & Beyond Inc (BBBY.O) said on Monday it was planning to raise some $1 billion through an offering of preferred stock and warrants in a last-ditch effort to stave off bankruptcy.

Shares of the retailer, which closed up 92.1% at $5.86 in a roller-coaster session, were down 33.5% in extended trading after news of the proposed offering.

Bed Bath & Beyond has been part of the meme stock phenomenon, with shares skyrocketing as much as 400% in 2021 when activist investor and Gamestop Corp chairman Ryan Cohen took a stake and sought changes.

In addition to 150 store closures announced in 2022, the company is now saying it will close 87 additional Bed Bath & Beyond stores and five buybuy BABY stores. The company is also shutting down its health and beauty discount chain Harmon.

BED BATH & BEYOND'S LIST OF STORE CLOSINGS

Bed Bath & Beyond is currently negotiating a loan to help navigate bankruptcy proceedings, with the investment firm Sixth Street in talks to provide funding.

The firm loaned Bed Bath & Beyond $375 million last year but declined to comment on the current matter.

BED BATH & BEYOND INTERIM CEO TO STAY IN POST FOR AT LEAST A YEAR - SOURCE

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Over the last five days as traders continued shorting the stock, shares have ballooned just over 113% after gaining a little more than 262% the last month. 

Fox Business' Joe Toppe and Reuters contributed to this report