Feb 6 Reuters Bed Bath Beyond Inc said on Monday it was planning to raise some 1 billion through an offering of preferred stock and warrants in a lastditch effort to stave off bankruptcy.

The home goods retailer said in securities filings that if it can39;t complete the complex transaction, it would likely file for bankruptcy protection. The chain has said in recent weeks that it had defaulted on a loan and may not be able to remain in business, raising concerns about its future.

Bed, Bath Beyond held talks in recent days with an investment firm to underwrite a significant portion of the proposed offering, two people familiar with the matter said.

Shares of the retailer, which closed up 92.1 at 5.86 in a rollercoaster 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 last year when activist investor and Gamestop Corp chairman Ryan Cohen took a stake and sought changes.

Bed Bath said it was planning to raise just over 1 billion through sales of preferred stock and warrants and from securities when the warrants are exercised.

Bed Bath will receive a waiver on its recent bank default should the proposed offering succeed, the company said.

The embattled retailer said it would use the proceeds of the offering to repay outstanding revolving loans which it would then use to make an interest payment on bonds it missed on February 1. It also…