Bed Bath & Beyond Offers Convertible Preferred Stock

Bed Bath Beyond Inc. said Monday it was planning to raise about $225 million through an offering of Series A convertible preferred stock and warrants.

Shares of the retailer, which closed up 92.1% at $5.86 in wild trading session, where down as much as 14% in extended trading.

The embattled retailer said it will use the proceeds of the offering to repay outstanding revolving loans under its asset-based lending (ABL) facility.

Bed Bath & Beyond said in January it had defaulted on a loan from JPMorgan Chase Bank N.A. Bloomberg News reported that the company’s efforts to find a buyer had also stalled.

Sources have told Reuters that Bed Bath & Beyond has lined up liquidators to close additional stores unless a last-minute buyer emerges.