Bed Bath & Beyond shares dropped after the retailer turned meme stock said in a filing it would sell an undisclosed number of shares, and it announced $500 million in new financing and plans for layoffs.
The shares fell 21% on Wednesday.
"We may offer, issue and sell shares of our common stock from time to time," the company said in the Wednesday filing to the SEC. Under the shelf process, the company can sell the securities listed in one or more offerings.
"Each time we offer securities, we will provide a prospectus supplement that will contain specific information about the terms of that offering," the filing said.
The document also notes that the company plans to use net proceeds from any sale of securities for "general corporate purposes" including repaying debt, share repurchases or financing possible acquisitions.
Later in the morning, the company announced it had secured a $375 million loan, part of more than $500 million in new financing including a $1.13 billion asset-backed revolving credit facility. Bed Bath will also look to cut costs by closing stores and laying off employees, it said. The news sent the shares even lower.