(Reuters) -Bed Bath & Beyond Inc said on Wednesday it would close 150 stores and cut about 20% of its corporate and supply chain workforce as the cash-strapped home goods retailer struggles to turn around its business.

The company said it has secured more than $500 million in new financing, including a new $375 million “”first-in-last-out” loan, and would launch a stock offering of up to 12 million shares.

The retailer’s shares tumbled 16% in premarket trading as it shelved plans to sell Buybuy Baby, its infant and toddler merchandise business.

“They are running out of cash and desperately need to raise cash just to keep the business going,” said Jim Dixon, equity sales trader at Mirabaud.

The retailer had a long-term debt of $1.38 billion and only $107.5 million in cash as of the end of May.

Its shares have gained more than 13% in the last two sessions following a roller-coaster ride triggered by billionaire Ryan Cohen’s sale of his 9.8% stake.

(Reporting by Uday Sampath and Deborah Sophia in Bengaluru; Additional reporting by Bansari Kamdar and Ashwini Raj; Editing by Arun Koyyur)