California, August 24, 2025
News Summary
Bed Bath & Beyond has announced it will not open new stores in California, citing concerns over the state’s regulatory environment and high costs. Executive chairman Marcus Lemonis emphasized that the decision is not politically charged but reflects operational challenges. Following the company’s bankruptcy in 2023, which led to nationwide store closures, Bed Bath & Beyond plans to continue e-commerce services in California but no physical store openings are planned until business conditions improve.
California is witnessing significant changes in its retail landscape as Bed Bath & Beyond has declared it will not open or operate any new retail stores in the state. The decision stems from concerns about California’s business environment, which the company deems overregulated and costly. According to Marcus Lemonis, the executive chairman of Bed Bath & Beyond, California represents one of the most “overregulated, expensive, and risky environments for businesses in America.” He emphasized that this decision is not politically motivated but rather reflects the operational realities faced by businesses in the state.
Lemonis pointed out that several factors contribute to the challenging environment for retailers, including higher taxes, fees, and wages. These challenges have made it increasingly difficult for many businesses to sustain operations, recruit and retain employees, and ultimately deliver value to their customers. The executive’s comments mirror an ongoing trend in California, where numerous companies have relocated or reconsidered their business strategies due to similar adverse conditions.
This announcement follows Bed Bath & Beyond’s bankruptcy filing in 2023, which resulted in the closure of all over 300 retail locations nationwide. Since the bankruptcy, the company has undergone a rebranding process and has recently opened its first new physical store, named Bed Bath & Beyond Home, in Nashville. The specialty retailer, Brand House Collective, has stepped in to manage the Bed Bath & Beyond brand under this new name.
Bed Bath & Beyond indicated plans to pursue further physical store openings in a “curated, smaller format” but confirmed that California is currently not part of these expansion plans. For California residents, the company will maintain its e-commerce service, allowing customers to shop online at BedBathandBeyond.com. Products ordered online will benefit from expedited shipping options, providing 24-48 hour delivery and same-day service for select items.
The governor’s office in California responded to Lemonis’s criticisms, stating that the government had already assumed Bed Bath & Beyond had fully exited the market after declaring bankruptcy. This revelation adds to concerns about the state’s economic climate as it continues to face challenges in attracting and retaining businesses.
California’s complex regulatory structure and high costs have contributed to an ongoing trend where various companies have sought to relocate or expand in other states offering more favorable business conditions. The future of retail in California remains uncertain as businesses weigh the advantages and disadvantages of operating in the state.
FAQ
Why has Bed Bath & Beyond decided not to open stores in California?
Bed Bath & Beyond cited California’s overregulated and expensive business environment as the main reasons for not expanding in the state.
What challenges does Bed Bath & Beyond face in California?
The company faces high taxes, fees, and wages, which complicate the ability to sustain operations and provide customer value.
What changes occurred after Bed Bath & Beyond declared bankruptcy?
Following the bankruptcy in 2023, Bed Bath & Beyond closed all of its over 300 stores nationwide, but has since rebranded and opened its first new store in Nashville.
How can Californians shop at Bed Bath & Beyond now?
Californians can shop online through BedBathandBeyond.com, with options for expedited and same-day delivery on select products.
What is known about the future of Bed Bath & Beyond in California?
The company has stated that no expansion plans will take place in California until the business conditions improve.
Key Features of Bed Bath & Beyond’s Decision
| Feature | Description |
|---|---|
| Decision Type | No new retail stores in California |
| Reasons | Overregulation, high costs (taxes, fees, wages) |
| Bankruptcy Impact | Closure of all stores nationwide; rebranding efforts |
| Current Store Format | Curated, smaller store openings in other locations |
| Online Shopping Availability | Continued e-commerce with expedited & same-day delivery options |
| Future in California | No plans for expansion until business conditions improve |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores in California
- Business Wire: Statement from Marcus Lemonis
- Fox Business: Major Retailer Outlines Economic Reality in California
- USA Today: Newsom Responds to Bed Bath & Beyond
- The Hill: Newsom on California’s Business Environment
- Wikipedia: California
- Google Search: California business environment
- Google Scholar: California retail industry
- Encyclopedia Britannica: California
- Google News: California business news
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