Bed Bath & Beyond said on Friday it was seeking shareholder approval for a reverse stock split, sending the struggling retailer's shares 13% lower in extended trading.

The company plans to hold a special meeting on March 27 to determine the split at a ratio in the range of 1-for-5 to 1-for-10, with the final ratio to be decided by the board.

The news comes less than two weeks after it was announced that the stock would be removed from the small-cap S&P 600 index, following a near 60% plunge this year as the retailer fights to stave off bankruptcy.

"The board believes that the reverse stock split will likely result in a higher per-share trading price, which is intended to generate greater investor interest in the company," Bed Bath & Beyond said in a regulatory filing.

CEO Sue Gove said the move would enable the company to continue rebuilding liquidity to execute its turnaround plans and better position it financially.

In February, the company said it was planning to raise some $1 billion through an offering of preferred stock and warrants. So far, it has raised $360 million out of the planned total.

Bed Bath & Beyond shot to popularity in the 1990s as a go-to shopping destination for couples making wedding registries and planning for new babies, but it has seen demand dwindle as its merchandising strategy to sell more store-branded products flopped.