Bed Bath & Beyond has confirmed that it will not open any retail stores in California, citing the state’s regulatory environment as a key factor in its decision.
Marcus Lemonis, executive chairman of the home goods retailer, announced the decision in a statement, noting that the company’s choice “isn’t about politics – it’s about reality.”
Lemonis described California as “one of the most overregulated, expensive, and risky environments for businesses in America,” explaining that higher taxes, increased fees, raised wages, and a multitude of regulations create an unsustainable business climate.
“It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers,” Lemonis explained.
“The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth. Even when the state announces a budget surplus, it’s built on the backs of ordinary citizens who are paying too much and businesses who are squeezed until they break.”
Bed Bath & Beyond, which filed for bankruptcy in 2023 before being acquired and rebranded under Beyond Inc., is attempting a comeback with new “neighborhood” stores in several states.
However, Lemonis stated the company will not risk opening or operating physical stores in California.
Instead, the retailer plans to focus on online sales and rapid delivery services within the state, including same-day shipping options, to avoid the inflated costs associated with California’s business environment.
The decision drew quick reactions from California lawmakers.
A spokesperson for Governor Gavin Newsom remarked on X, formerly Twitter, that “like most Americans, we thought Bed, Bath & Beyond no longer existed.”
“We wish them well in their efforts to become relevant again as they try to open a 2nd store,” continued the press office.
Newsom also posted on his personal social media account to address the announcement, seemingly brushing off the company’s decision to avoid California.
“The company that already went bankrupt and closed every store across the country two years ago? Ok,” wrote Newsom.
The company’s pivot away from California storefronts comes as it seeks to stabilize after a tumultuous period marked by bankruptcy, shuttering hundreds of locations nationwide, and shifting toward a more streamlined business model.
Bed Bath & Beyond is seemingly looking to open even more stores in the near future, but California will clearly remain off that list for the time being.