Bed Bath & Beyond shares crater after meme stock files share offering for undisclosed amount

Bed Bath & Beyond shares dropped after the retailer turned meme stock said in a filing it would sell shares for an undisclosed amount, and it announced $500 million in new financing and plans for layoffs.

The shares fell 24% at the market open 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.

The filing came just hours before Bed Bath & Beyond outlined a turnaround plan Wednesday in an attempt to win back the confidence of shoppers, investors and suppliers. Some investors had been calling for the retailer to capitalize on its meme status by issuing stock to raise much-needed cash.

The company had said previously that it was working with financial advisors and lenders to strengthen its balance sheet. In the most recent quarter, the retailer's net loss widened, and the company ended May with about $100 million in cash, down from $1.1 billion a year ago.

It also may be in the process of securing a loan — The Wall Street Journal reported last week that the company and asset manager Sixth Street Partners are nearing final terms on a loan of nearly $400 million. Sixth Street and Bed Bath did not respond to CNBC's requests for comment.

Aside from its financials, the company may also address how it plans to lure back shoppers, shore up issues with its supply chain and move inventory. Investors are also awaiting more information about a potential sale or spinoff of its Buybuy Baby brand.