California, August 28, 2025
News Summary
Bed Bath & Beyond has confirmed it will not reopen any stores in California following its bankruptcy filing in April 2023. The company, now under new ownership as The Brand House Collective after being acquired by Overstock, cites California’s overregulated and costly business environment as a decisive factor. Despite the closures, Californians can still access Bed Bath & Beyond products online with fast shipping options. This decision reflects a broader trend of companies relocating to escape California’s challenging operational landscape.
California – Bed Bath & Beyond has announced that it will not reopen any stores in California following its recent bankruptcy filing. The company had filed for Chapter 11 bankruptcy in April 2023, leading to the closure of 360 stores before its re-launch under new ownership in June 2023.
In a significant transformation, Overstock purchased Bed Bath & Beyond’s intellectual property and rebranded it as The Brand House Collective. As part of its new strategy, the retailer plans to open a test store in Nashville. However, the company has explicitly stated that it will not return to California, which executive chairman Marcus Lemonis categorized as an “overregulated, expensive, and risky” business environment.
Lemonis pointed out several challenges that companies face in California, which include higher taxes, increased operational fees, elevated wages, and strict regulations. These issues have become significant barriers for businesses, deterring Bed Bath & Beyond and potentially other retailers from re-establishing a physical presence in the state.
Despite the closure of physical outlets, Californians will still have access to Bed Bath & Beyond products through online shopping. The retailer is implementing a specialized “California strategy,” which features same-day delivery and fast shipping options to cater to local customers.
The decision to bypass reopening in California reflects a larger trend of companies moving out of the state due to high operational costs and stringent regulations. Recent data indicates that over 350 firms relocated their headquarters from California between 2018 and 2021, indicating significant challenges in maintaining business operations amid the state’s regulatory environment.
California Governor Gavin Newsom responded to the claims made by Lemonis with skepticism, suggesting that the relevance of Bed Bath & Beyond may be in question following its bankruptcy. This sentiment echoes a growing concern among retailers and executives about the state’s ability to maintain an appealing commercial climate.
Bed Bath & Beyond is not alone in experiencing difficulties while operating in California. Various high-profile companies have echoed similar frustrations, including In-N-Out, whose CEO Lynsi Snyder has publicly discussed the challenges faced in the state’s business landscape. Increasing rates of retail theft have further stirred concerns among executives like Lemonis regarding the safety and viability of operating in California’s complex environment.
In an effort to combat rising retail theft, California voters approved Proposition 36 in November 2024, classifying repeat shoplifting offenses as felonies. This step aims to address the increasing concerns regarding safety and loss prevention, which have become critical issues for retailers in the state.
As Bed Bath & Beyond and other companies reevaluate their operations, the perception of California’s business climate remains under scrutiny. The state continues to navigate the challenges of remaining an attractive locale for both established and new businesses while addressing operational costs and regulatory hurdles.
FAQ
What led to Bed Bath & Beyond’s decision to not reopen stores in California?
Bed Bath & Beyond cited California’s overregulated, expensive, and risky business environment as key reasons for not reopening stores in the state following its bankruptcy.
What changes has Bed Bath & Beyond undergone after bankruptcy?
The company filed for Chapter 11 bankruptcy in April 2023, closed 360 stores, and was subsequently relaunched under new ownership by Overstock, which rebranded it as The Brand House Collective.
Will residents in California still be able to purchase from Bed Bath & Beyond?
Yes, Californians will still be able to shop online through a dedicated California strategy that includes same-day delivery and rapid shipping options.
How does this situation reflect broader trends in California?
Bed Bath & Beyond’s decision aligns with a trend of over 350 companies that relocated out of California between 2018 and 2021, primarily due to high operational costs and regulatory burdens.
Key Features of Bed Bath & Beyond’s Business Update
Features | Details |
---|---|
Bankruptcy Filing | Chapter 11 in April 2023 |
Store Closures | 360 stores closed before rebranding |
New Ownership | Purchased by Overstock and rebranded |
California Strategy | Online shopping with same-day delivery |
Challenges in California | High taxes, operational fees, and strict regulations |
Company Relocation Trend | Over 350 companies moved out between 2018-2021 |
Retail Theft Concerns | Increased concerns highlighted by executives |
Proposition 36 | Approved in November 2024 to combat shoplifting |
Deeper Dive: News & Info About This Topic
- TheStreet: Home Goods Retailer Sets Closing Sale for 31 Stores in Bankruptcy
- Kron4: Bed Bath & Beyond Bashes California as it Emerges from Bankruptcy
- San Francisco Chronicle: Bed Bath & Beyond California Stores
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores in Overregulated, Expensive California
- The Hill: Newsom on California Business Environment
- Wikipedia: California
- Google Search: Bed Bath & Beyond California
- Google Scholar: Bed Bath & Beyond Bankruptcy
- Encyclopedia Britannica: Retail Business
- Google News: California Business Closures

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