California, August 25, 2025
News Summary
Following its bankruptcy filing in 2023, Bed Bath & Beyond has announced that it will not reopen any of its stores in California. The company’s executive chairman, Marcus Lemonis, cited the state’s challenging regulatory environment and high operational costs as major obstacles. With all stores closed nationwide, the retailer is focusing on online operations under its new brand, Beyond, Inc., while planning to open around 300 new stores primarily outside California.
California faces a significant shift in the retail landscape following Bed Bath & Beyond’s bankruptcy filing in 2023. The company’s executive chairman, Marcus Lemonis, announced that the retailer will not reopen any locations in the state, citing a challenging business environment characterized by excessive regulation and high operational costs.
Following its bankruptcy declaration, Bed Bath & Beyond closed all of its stores nationwide. Before this financial downturn, the company operated over 80 locations across California. Despite pressures to return to the marketplace, Lemonis highlighted that the conditions in California inhibit businesses from hiring staff, maintaining operations, and delivering value to customers effectively.
In his critical assessment, Lemonis explained that California is one of the most overregulated and risky places for businesses. He emphasized that these conditions prompt a practical business decision to refrain from reopening stores in the state. This decision is anchored in economic factors rather than political motives. The comments drew a response from Governor Gavin Newsom’s office, which noted their understanding of Bed Bath & Beyond’s situation and expressed goodwill for the company to regain relevance.
The challenges faced by Bed Bath & Beyond in California are echoed by several high-profile companies that have expressed dissatisfaction with the state’s business climate. Notable examples include In-N-Out Burger, Tesla, and Chevron, some of which have migrated their headquarters to other states, including Texas, to escape the perceived burdens of California’s regulatory framework.
Although critics highlight California’s challenging business conditions, some economists argue that the state remains a crucial global technology hub and possesses several significant advantages. Data from the Bureau of Labor Statistics illustrates a trend in which more companies have exited California than have entered since 2015, further fueling the debate on the state’s business climate.
Despite the challenges in California, Bed Bath & Beyond is focusing on new ventures. In August 2023, the company opened its first new store in Nashville, with plans to launch approximately 300 additional stores in the coming two years. Its assets were acquired by Overstock.com, which has transitioned operations under the name Beyond, Inc., offering online shopping options for Californians without the need for physical points of sale.
Lemonis also mentioned that although the company enjoys success through online channels, the regulatory environment and associated costs in California hinder any potential expansions of brick-and-mortar stores in the state. While Lemonis has faced criticism from various California politicians, advocacy for a more business-friendly environment continues, with figures such as San Jose’s Mayor Matt Mahan emphasizing the importance of improving conditions for businesses.
Interestingly, an economic analysis indicates a distinction between California’s corporate income tax and Texas’s gross receipts tax, making difficult comparisons of the two states’ business landscapes. As Bed Bath & Beyond navigates its rebranding efforts, it is clear that aspects of California’s business environment will continue to play a crucial role in shaping decisions regarding its operations.
Frequently Asked Questions
What prompted Bed Bath & Beyond to file for bankruptcy?
Bed Bath & Beyond filed for bankruptcy in 2023 due to several unsuccessful turnaround strategies that resulted in mounting debt.
Why will Bed Bath & Beyond not reopen stores in California?
Marcus Lemonis, the executive chairman, stated that California has a highly regulated, expensive, and risky business environment, making it impractical to reopen stores there.
What is Bed Bath & Beyond’s future in relation to store openings?
The company has announced plans to open around 300 new stores in the next couple of years, starting with a location in Nashville.
Have other companies expressed similar concerns about California’s business environment?
Yes, companies like In-N-Out, Tesla, and Chevron have expressed dissatisfaction, with some relocating their headquarters to more favorable states.
What is the current status of Bed Bath & Beyond’s operations?
Bed Bath & Beyond’s assets were acquired by Overstock.com, which has rebranded operations as Beyond, Inc. and offers online shopping options for California residents.
Key Features Overview
| Feature | Details |
|---|---|
| Bankruptcy Filing | 2023, due to unsuccessful turnaround strategies |
| Store Closures | All locations closed nationwide |
| California Presence | No reopening of stores due to regulatory environment |
| Online Operations | New brand Beyond, Inc. offers online shopping |
| Future Plans | Opening 300 new stores, starting in Nashville |
| Competitors’ Positions | In-N-Out, Tesla, and Chevron critique California business climate |
Deeper Dive: News & Info About This Topic
- ABC7 News
- Forbes
- People
- KMPH News
- Retail Dive
- Wikipedia: California
- Google Search: Bed Bath & Beyond California
- Google Scholar: California business climate
- Encyclopedia Britannica: retail landscape
- Google News: Bed Bath & Beyond news
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like 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 drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
