Bed Bath & Beyond Plans No California Stores Citing Cost, Regulation

Bed Bath & Beyond, under the leadership of Executive Chairman Marcus Lemonis, announced it will not reopen or open any retail stores in California, citing the state's overregulation, high taxes, expensive fees, and challenging business environment as prohibitive factors. Lemonis stated that California's regulatory system makes it difficult to employ people, keep stores open, and deliver value to customers, leading the company to instead serve California customers via their online platform with rapid delivery options. This decision comes as Bed Bath & Beyond emerges from its 2023 bankruptcy and plans to reopen stores nationwide except in California. The move aligns with a trend of other companies criticizing or relocating from California due to its business climate, including In-N-Out's owner and firms like Chevron, Tesla, and SpaceX. California Governor Gavin Newsom's office responded dismissively, referencing Bed Bath & Beyond's bankruptcy and store closures, while local leaders expressed concern about the state's impact on business. Economists note California remains a major tech hub with a strong talent pool, but data shows more companies have left the state than entered since 2015.