California, August 28, 2025
News Summary
Bed Bath & Beyond has confirmed it will not reopen stores in California following its Chapter 11 bankruptcy filing in April 2023. The company, now under new ownership by Overstock, aims to prioritize online sales and strategic locations instead. The executive chairman cited California’s complex and costly business environment as a major factor in the decision. Despite this, Californians will still have access to the retailer’s products through an enhanced online shopping experience, including same-day delivery. This shift reflects broader challenges faced by many businesses in California.
California — Bed Bath & Beyond has confirmed it will not reopen any stores in California after its Chapter 11 bankruptcy filing in April 2023. Under its new ownership structure, the company has opted to focus on online retail and strategic test locations, bypassing California’s market, which the executive chairman described as overly complicated and costly for business operations.
This decision follows a tumultuous period for Bed Bath & Beyond that included the closure of 360 stores prior to a relaunch in June 2023. The retailer was purchased by Overstock, which acquired its intellectual property and transitioned the brand into a new format named The Brand House Collective. The corporate strategy now includes opening a flagship store in Nashville, which will serve as a test site for potential future store openings.
Marcus Lemonis, the executive chairman of Bed Bath & Beyond, pointed out that the business environment in California is fraught with challenges. He cited factors such as higher taxes, expensive operational costs, elevated employee wages, and stringent regulations as key reasons for the decision to avoid reopening within the state. California’s landscape has become increasingly unfavorable for many businesses, which has contributed to a larger trend of corporate relocations out of the state. According to reports, over 350 companies have moved out of California between 2018 and 2021 due to these high operational burdens.
Californians, however, will not be entirely deprived of access to Bed Bath & Beyond products. The company plans to implement an online shopping strategy tailored specifically for California. This includes enhanced logistics like same-day delivery and fast shipping options to accommodate local consumers despite the lack of physical storefronts.
Responses to this business shift have been varied, with California Governor Gavin Newsom expressing skepticism regarding Bed Bath & Beyond’s relevance post-bankruptcy. He suggested that the challenges faced by the retailer are symptomatic of larger issues affecting similar businesses in California.
Additionally, Bed Bath & Beyond’s concerns reflect a broader sentiment in the retail community, as noted by other executives like In-N-Out’s CEO, who similarly cited difficulties associated with doing business in California. Retail theft is also a growing worry for businesses in the state, which has experienced significant increases in shoplifting incidents. This alarming trend prompted California voters to approve Proposition 36 in November 2024, aiming to classify repeat shoplifting offenses as felonies, thereby addressing the surge in theft-related challenges.
The ongoing situation regarding Bed Bath & Beyond, along with other companies looking to exit or avoid California, reveals a complex dialogue about the state’s business climate. The government and corporate sector must continue to navigate these challenges to maintain California’s desirability as a home for various businesses.
FAQ Section
1. Why has Bed Bath & Beyond decided not to reopen stores in California?
The decision stems from the company’s assessment of California’s business environment, which they characterize as overregulated, expensive, and risky due to high taxes, fees, and wages.
2. What was the impact of Bed Bath & Beyond’s bankruptcy?
Following the Chapter 11 filing, the company closed 360 stores. It has since restructured under new ownership and aims to concentrate on online sales rather than physical locations.
3. How will Californians access Bed Bath & Beyond products now?
Consumers will still be able to shop online, with initiatives like same-day delivery being introduced as part of a dedicated California strategy.
4. What broader trend does Bed Bath & Beyond’s decision reflect?
It aligns with a trend of companies relocating out of California due to high operational costs and regulatory burdens, contributing to over 350 companies leaving the state between 2018 and 2021.
5. What actions are being taken to address retail theft in California?
In response to rising retail theft, California voters passed Proposition 36, which categorizes repeat shoplifting offenses as felonies.
Key Features
| Feature | Description |
|---|---|
| Bankruptcy Filing | Filed for Chapter 11 in April 2023, leading to the closing of 360 stores. |
| Ownership Change | Acquired by Overstock, rebranded as The Brand House Collective. |
| Market Strategy | No reopening in California due to high costs, but online shopping remains available. |
| California Operations | Implementation of same-day delivery services for online orders. |
| Corporate Relocation Trends | Over 350 companies left California between 2018 and 2021 due to regulatory challenges. |
| Retail Theft Measures | Proposition 36 passed to address retail theft by making repeat offenses felonies. |
Deeper Dive: News & Info About This Topic
- The Street: Home Goods Retailer Sets Closing Sale for 31 Stores in Bankruptcy
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores in Overregulated, Expensive California
- Kron4: Bed Bath & Beyond Bashes California as It Emerges from Bankruptcy
- CBS News: Bed Bath & Beyond Stores California
- San Francisco Chronicle: Bed Bath & Beyond California Stores
- Wikipedia: California
- Google Search: Bed Bath & Beyond bankruptcy
- Google Scholar: California business environment
- Encyclopedia Britannica: retail trends California
- Google News: retail closures California
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange 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 the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
