Bed Bath Beyond Halts California Store Openings Citing Regulatory Costs

Bed Bath & Beyond, led by Executive Chairman Marcus Lemonis, announced it will not open or operate any brick-and-mortar stores in California as part of its comeback efforts following its 2023 bankruptcy and closure of all stores. Lemonis cited California's high taxes, extensive regulations, and costly business environment as reasons the state is too risky and expensive to sustain physical retail operations, though the company will continue to serve California customers via online ordering with 24–48-hour delivery. California Governor Gavin Newsom responded dismissively on social media, mocking the company for its bankruptcy and questioning its relevance, while his press office wished the retailer luck in reopening stores elsewhere. Lemonis countered Newsom’s remarks by proposing pro-business reforms and emphasizing that the decision was about economic realities rather than politics. Bed Bath & Beyond recently reopened its first new store in Nashville and plans to expand small to midsize stores through its Kirklands investment outside of California. The dispute highlights ongoing tensions between business leaders and California policymakers over the state's regulatory and tax policies.