Bed Bath & Beyond Halts Expansion in California Amid Challenges

Closed Bed Bath & Beyond store in California

California, August 24, 2025

News Summary

Bed Bath & Beyond has announced it will not open new stores in California due to the challenging regulatory and economic environment. Executive Chairman Marcus Lemonis cited high taxes and operational difficulties as key factors. Following its bankruptcy in 2023, the company closed over 300 stores nationwide, but continues to offer products online with expedited delivery options. The decision highlights broader trends of businesses scaling back in the state due to perceived obstacles. Californians can still access the brand via its website, BedBathandBeyond.com.

California is experiencing a setback as Bed Bath & Beyond has declared that it will not open or operate any new retail stores in the state. This decision comes as a result of what the company describes as a challenging business environment in California.

According to Marcus Lemonis, the executive chairman of Bed Bath & Beyond, the state has become one of the most overregulated, expensive, and risky environments for businesses in America. He noted that the operational challenges faced by many retailers are significant enough to impede growth and sustainability in the state.

Lemonis attributes the decision not to be politically motivated but rather based on concrete operational realities. He pointed out that California is burdened with higher taxes, fees, and wages that many businesses find difficult to endure. As a consequence, maintaining staff, keeping stores open, and providing value to customers in the state has become increasingly difficult.

Bed Bath & Beyond has faced significant upheaval over the past year. Following its bankruptcy filing in 2023, the company shut down all of its over 300 retail locations nationwide. Rebranding efforts have followed, with the company recently launching its first physical store under the new name, Bed Bath & Beyond Home, located in Nashville. This store represents a shift to a more refined retail approach, managed by Brand House Collective, which oversees the Bed Bath & Beyond brand under its new identity.

While Bed Bath & Beyond plans to expand its retail footprint in a “curated, smaller format,” the company has firmly stated that California will not be included in its future plans until the business climate improves. Californians will still have access to the brand’s products through online shopping at BedBathandBeyond.com, with delivery options that include 24 to 48-hour service and same-day delivery for select items.

The California governor’s office has responded to Lemonis’ criticisms of the state’s business environment. The office expressed that Bed Bath & Beyond was assumed to have closed for good following its bankruptcy announcement, indicating that the closure of stores was not entirely unexpected.

This decision by Bed Bath & Beyond reflects a broader trend in California, where numerous companies have relocated or scaled back due to perceived challenging business conditions. The state’s regulatory framework and business costs are seen as factors driving investors and retailers to seek opportunities elsewhere.

Key Takeaways

  • Bed Bath & Beyond will not open new stores in California due to perceived operational challenges.
  • The company’s executive chairman cites high taxes, fees, and wages as contributing factors.
  • Following its bankruptcy in 2023, all of the company’s stores were closed nationwide.
  • Bed Bath & Beyond has rebranded and is pursuing new store openings in a smaller format outside of California.
  • Online shopping remains available for Californians with quick delivery options.

Impact of the Decision

The business climate in California remains a concern for many retailers. With Bed Bath & Beyond’s decision to avoid new store openings in the state, it highlights a significant challenge for businesses seeking to establish or maintain a presence in one of the largest retail markets in the country.

FAQ Section

Q: Why is Bed Bath & Beyond not opening new stores in California?

A: The company has cited California’s highly regulated, expensive, and risky business environment as the main reason for its decision.

Q: What challenges did Bed Bath & Beyond mention regarding California?

A: The company pointed to high taxes, fees, and wages as burdens that make operating in California difficult.

Q: What happened to Bed Bath & Beyond’s stores nationwide?

A: Following its bankruptcy in 2023, Bed Bath & Beyond closed all of its over 300 stores.

Q: What is the new format that Bed Bath & Beyond is pursuing?

A: The company is looking to open stores in a “curated, smaller format” in locations outside of California.

Q: Can Californians still shop with Bed Bath & Beyond?

A: Yes, customers in California can shop online at BedBathandBeyond.com, with options for quick delivery.

Key Features Chart

Feature Description
Decision Bed Bath & Beyond will not open stores in California.
Executive Comments Described California as overregulated and expensive for businesses.
Former Stores Closed all over 300 stores post-bankruptcy in 2023.
New Store Format Curated, smaller format aimed for future stores outside California.
Online Availability Online shopping with fast delivery options continues for Californians.

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STAFF HERE SAN DIEGO WRITER
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.

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