California, August 24, 2025

News Summary

Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, announced that the company will not reopen stores in California, citing high taxes and regulatory burdens. Instead, the retailer plans to open 300 new stores nationwide, focusing on areas outside California while continuing to serve the state through delivery services. This decision follows the company’s bankruptcy in 2023, reflecting ongoing tensions regarding California’s business climate. Criticism from Governor Gavin Newsom underscores the visible divide in opinions regarding the state’s regulations and their impact on businesses.

California

Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, has announced that the company will not reopen any retail stores in California due to the state’s challenging business environment. Lemonis labeled California as “overregulated, expensive, and risky” in his statement made on August 20, 2025. This marks a significant decision as the company navigates a comeback strategy focused on establishing new locations across the nation.

Bed Bath & Beyond plans to open 300 new neighborhood stores nationwide, with the first of these stores, named Bed Bath & Beyond Home, debuting in Nashville on August 8, 2025. Despite the ambitious expansion plans, California is explicitly excluded from this list.

Lemonis clarified that the decision to omit California from their reopening plans is based on economic factors rather than political issues. He emphasized that high taxes, fees, wages, and regulatory burdens present barriers to profitability that make the state unattractive for their business operations.

In response to Lemonis’s comments, California Governor Gavin Newsom took to social media to mock the company’s past bankruptcy and suggested that Bed Bath & Beyond had lost relevance. He noted, after their bankruptcy and closure of every store, that the company seemed to many as if it no longer existed.

Despite closing physical locations in California, Lemonis indicated that Bed Bath & Beyond would continue to serve customers in the state through delivery services. This approach is part of a broader commitment to engage with California consumers while avoiding the high costs associated with maintaining physical storefronts in the region.

The back-and-forth between Lemonis and Newsom reflects ongoing debates regarding California’s business climate. Critics of the state’s regulatory framework argue that it discourages economic growth and drives businesses away, while advocates maintain that government regulation is necessary for protecting workers and ensuring a high quality of life. This exchange highlights the tension between maintaining standards for individuals and the challenges businesses face under strict regulations.

Bed Bath & Beyond previously filed for bankruptcy in 2023 and subsequently closed all of its stores. Following this closure, the company has been focused on rebranding and restructuring its operations, with a particular emphasis on a robust e-commerce platform. This shift aims to ensure customers receive products without the need for any physical stores within California.

A spokesperson for the Brand House Collective, which oversees Bed Bath & Beyond’s operations, reiterated that the lack of physical stores in California will remain until the business climate improves. The company remains committed to its expansion plans elsewhere, as it looks to regain a foothold in the retail market.

Conclusion

As the dialogue continues about California’s business regulations, Lemonis’s statements underline significant challenges faced by companies looking to operate in the state. As the company forges ahead by opening new stores across the nation while utilizing e-commerce solutions for California customers, all eyes will be on the evolving strategies of Bed Bath & Beyond.

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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.