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Mattress Tub & Past Inc mentioned on Monday it was planning to boost some $1 billion by means of an providing of most well-liked inventory and warrants in a last-ditch effort to stave off chapter.

The house items retailer mentioned in securities filings that if it will possibly’t full the advanced transaction, it might “probably file for chapter safety.” The chain has mentioned in latest weeks that it had defaulted on a mortgage and should not be capable of stay in enterprise, elevating issues about its future.

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Mattress, Tub & Past held talks in latest days with an funding agency to underwrite a good portion of the proposed providing, two individuals aware of the matter mentioned.

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Shares of the retailer, which closed up 92.1% at $5.86 in a roller-coaster session, had been down 33.5% in prolonged buying and selling after information of the proposed providing.

Mattress Tub & Past has been a part of the meme inventory phenomenon, with shares skyrocketing as a lot as 400% final yr when activist investor and Gamestop Corp chairman Ryan Cohen took a stake and sought adjustments.

Mattress Tub mentioned it was planning to boost simply over $1 billion by means of gross sales of most well-liked inventory and warrants and from securities when the warrants are exercised.

Mattress Tub will obtain a waiver on its latest financial institution default ought to the proposed providing succeed, the corporate mentioned.

The embattled retailer mentioned it might use the proceeds of the providing to repay excellent revolving loans which it might then use to make an curiosity fee on bonds it missed on February 1. It additionally plans to attract an extra $100 million from a first-in-last-out mortgage from funding agency Sixth Road, that takes precedence for reimbursement in a doable chapter.

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Los Angeles-based funding financial institution B. Riley Securities is the only e-book runner on the deal, incomes as much as a most payment of $10 million.

Mattress Tub & Past additionally appointed Holly Etlin, a chapter professional, as interim chief monetary officer.

The Union, New Jersey-based dwelling items retailer, which shot to recognition within the Nineteen Nineties as a go-to buying vacation spot for {couples} making wedding ceremony registries and planning for brand spanking new infants, has seen demand drop off lately as its merchandising technique to promote extra store-branded merchandise flopped.

In January, the corporate raised doubts about its skill to proceed as a going concern simply months after it introduced greater than $500 million in new financing, in addition to job cuts and 150 retailer closures.

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On Monday, Mattress Tub mentioned it deliberate to shut an extra 150 shops, on high of 250 beforehand introduced retailer closures.

Mattress Tub & Past mentioned in January it had defaulted on a mortgage from JPMorgan Chase Financial institution N.A. Bloomberg Information reported that the corporate’s efforts to discover a purchaser had additionally stalled.

After it had filed for chapter safety, rental automotive supplier Hertz International Holdings tried to promote new shares however pulled the providing after the U.S. Securities and Trade Fee (SEC) raised issues with out elaborating on specifics.

“It’s the same state of affairs by which a deeply financially distressed firm is trying to promote securities,” mentioned Lynn LoPucki, a professor on the College of Florida. “The identical concerns are working in each conditions. The truth that one is in chapter and the opposite is just not, wouldn’t make any distinction by way of SEC regulation.”

Sources have informed Reuters that Mattress Tub & Past has lined up liquidators to shut extra shops except a last-minute purchaser emerges. (Reporting by Noor Zainab Hussain, Jessica DiNapoli and Mike Spector; extra reporting by Granth Vanaik, Manya Saini and Shankar Ramakrishnan; Modifying by Anil D’Silva and Anna Driver)