As part of its latest effort to avoid filing for bankruptcy protection, Bed Bath & Beyond is seeking shareholder permission for a reverse stock split.

In an April 5 filing with the U.S. Securities & Exchange Commission (SEC), the struggling home goods retailer said it plans to hold a special meeting May 9 to determine the split at a ratio in the range of 1-for-10 to 1-for-20, with the final makeup to be decided by the board.

If approved, the move would reduce the number of outstanding shares of common stock available, allowing the Union-based company to issue enough shares to cover the terms of its recently announced $300 million equity offering. 

Bed Bath & Beyond plans to use proceeds from the stock sale on strategic initiatives, such as investing in merchandise inventory, increasing store footprint and realigning cost structure, the company has said. However, if it is not approved, the company said it likely won’t have enough equity to pay its debts and stay in business.

Presently, Bed Bath & Beyond owes $101.5 million under its credit facilities – excluding $105.6 million in letters of credit – and has $11.5 million available to borrow, according to its latest regulatory filing.

“We expect that we will likely file for bankruptcy protection and that our assets will likely be liquidated unless we are able to raise sufficient equity capital,” Bed Bath & Beyond said.

The reverse split could also boost the per-share price, which, the retailer believes could improve perceptions of its stock and attract more investors.

“We believe a higher share price could make our common stock more attractive to a broader range of investors, as we believe that the current market price of our common stock may affect its acceptability to certain professional investors and other members of the investing public,” the company said in its filing.

“In particular, we believe that an increased share price would enable us to attract additional institutional investors and investment funds who may not consider purchasing our Common Stock due to our low trading price,” Bed Bath & Beyond wrote.

Despite efforts to turn its business around, Bed Bath & Beyond continues to wrestle with losses and cash burn, prompting the chain to issue a going concern warning in January and sending stock prices plummeting.

As of midday April 10, shares were trading around 30 cents, giving the retailer a market value of about $139 million.

In addition to layoffs and store closures, the company has been working with suppliers to boost inventory levels as well as paying off outstanding interest payments.

Last week, Bed Bath & Beyond said it is launching a new vendor consignment program to get merchandise back on the shelves. Under the agreement, ReStore Capital – a credit-focused investment manager owned by Hilco Global – will buy up to $120 million of merchandise from the company’s key suppliers to supplement inventory levels already sold at Bed Bath & Beyond and BuyBuy Baby.

In an April 10 statement, Bed Bath & Beyond Chief Executive Officer and President Sue Gove said, “We recognize this past year has been among the most difficult in our company’s history. Particularly over the last several months, we are grateful to have overcome immediate challenges and impediments again and again thanks to the support of our customers, associates, business partners, and shareholders.”

“Our dedication to delivering for our supporters remains unwavering and we will continue to pursue our operational and financial goals to drive our turnaround,” Gove stated, who went on to say, “We are taking the necessary steps as part of our financial strategy to sustain and grow our business.”

“One thing remains true — many families, including our 20 million and growing Welcome Rewards members, continue to visit our beloved brands, Bed Bath & Beyond and buybuy BABY, to find solutions for life’s special moments,” she added. “We have operated for more than 50 years, and we are determined to deliver for the long-term benefit of our stakeholders.”