Bed Bath & Beyond Exits California Amid Bankruptcy Rebranding

California, September 13, 2025

News Summary

Bed Bath & Beyond will not reopen its stores in California as it undergoes bankruptcy rebranding to Bed Bath & Beyond Home. High operational costs and stringent regulations in California have pushed the company to focus on locations in states with a more favorable business environment. The decision aligns with a wider trend of businesses relocating from California, highlighting issues related to taxes, regulations, and living costs. The trend has seen a significant increase in companies leaving California, impacting the state’s economy.

California is witnessing a significant shift in the retail landscape as Bed Bath & Beyond, which recently filed for bankruptcy, announced on August 20 that it will not return to brick-and-mortar retail in the state. The company has rebranded itself as Bed Bath & Beyond Home and is focusing its reopening efforts in states with more favorable business conditions. The retail chain’s Executive Chairman highlighted California’s stringent regulations and high operational costs as critical factors contributing to its decision to bypass the state.

Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond Home, expressed concerns regarding California’s high taxes, labor costs, and regulatory environment which, in his view, create a risky business landscape. The company, which is seeking to regain its footing after filing for bankruptcy in 2023, has already opened a new location in Tennessee and plans to establish approximately 80 more stores across the nation in the coming year.

This move underscores a broader trend of companies relocating from California in search of a more conducive economic environment. In February, Realtor.com also made headlines by shifting its headquarters from California to Texas, thereby escaping the state’s costly business conditions. A report from the Public Policy Institute of California indicated that decisions to relocate are heavily influenced by factors including taxes, regulation burdens, and the availability of skilled labor.

Statistical data indicates that between 2011 and 2021, a staggering 789 companies moved their headquarters out of California, with the pace of these departures accelerating significantly post-2017. In tandem with this exodus, the number of firms establishing operations in California has dramatically declined, dropping from 137 in 2011 to merely 68 by 2021. Business leaders like Don Peebles, CEO of The Peebles Corporation, mentioned that many companies are “fleeing” California due to its declining quality of life and increasingly difficult business conditions.

Moreover, recent data from the U.S. Census Bureau highlights that approximately 690,127 residents left California for other states in 2023, following an outflow of 817,669 in 2022. Texas emerged as the most sought-after relocation destination, attracting 93,970 former Californians in 2023, with Arizona and Florida following closely.

The reasons behind this trend are multifaceted. The high cost of living and steep income taxes in California starkly contrast with states like Texas and Florida, which do not impose a state income tax. According to data regarding housing costs in California, the median home price currently sits at $859,700 – nearly double the national median of $440,892. A study by Bankrate suggests that households in California need an annual income of $213,447 to afford a typical home, further underscoring the financial strain residents face.

Several high-profile corporations, such as Chevron, Tesla, McKesson, and Charles Schwab, have also reportedly left California in search of lower tax rates and a more business-friendly regulatory environment. Chevron’s relocation to Houston was motivated by the view that California’s policies raise costs for both businesses and residents. Similarly, Tesla has moved its operations to Austin, citing challenges in scaling due to exorbitant housing prices in the Bay Area.

Reports indicate a notable rise in corporate relocations from California, with over 200 headquarters announcements made in 2021 alone. This shift is not limited to large corporations; many smaller businesses are also grappling with the financial burdens imposed by California’s high costs and regulatory environment.

In response to this exodus, local incentives have become pivotal for states seeking to attract relocating businesses. For instance, districts like Miami Beach have successfully drawn in companies by offering favorable conditions for those moving out of California.

The trend of corporations leaving California could have lasting implications for the state’s economy. Reduced business activity will likely impact the tax base and public service funding. Despite these challenges, California continues to maintain a robust economy valued at $3 trillion ($4 trillion) and still attracts some businesses capable of adapting to its rigorous conditions.

As the landscape of business continues to evolve, it reflects broader fluctuations in economic priorities, shifting workforce trends, and changing conditions influencing corporate relocations.

Deeper Dive: News & Info About This Topic

• Tech Times: Chevron, Tesla, Oracle Lead Wave of Companies Leaving California
• CoStar: Why Playboy is Joining California’s Corporate Exodus
• The Center Square: Texas Attracts California Businesses
• Wikipedia: Corporate Exodus
• BBC: California’s Business Relocation Trend

Author: STAFF HERE LOS ANGELES WRITER

LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana