California, September 5, 2025

News Summary

Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced that the company will halt new store openings in California due to high operational costs and strict regulations. Following its bankruptcy filing in 2023, the retailer is pivoting towards enhancing online services, offering delivery within 24 to 48 hours to California residents. As many companies exit the state seeking better conditions elsewhere, this decision reflects the ongoing challenges businesses face in California’s regulatory environment.

California

Bed Bath & Beyond’s executive chairman, Marcus Lemonis, has declared that the company will cease the opening of new retail stores in California. This decision is attributed to the state’s high operational costs and stringent regulatory environment, which Lemonis argues presents significant challenges for businesses.

Lemonis emphasized that the rationale behind this decision is rooted in economic realities rather than political issues. Following the company’s bankruptcy filing in 2023, Bed Bath & Beyond is attempting to relaunch and refocus its business strategies. Rather than physical stores, the company intends to enhance its online delivery services in California, promising to deliver products to residents within 24 to 48 hours.

California’s Business Climate

California is often viewed as a hub for innovation, home to influential industries such as Silicon Valley and Hollywood. However, it is also recognized for its rigorous regulatory framework, which has led to criticism from various business leaders. Opponents of California’s regulations argue that they deter business growth and innovation by creating heavy financial burdens and compliance challenges for companies.

Since 2015, the trend has shown more companies leaving California than moving into the state. Noteworthy businesses, including Chevron, Tesla, SpaceX, and Charles Schwab, have relocated portions of their operations due to these escalating regulatory hurdles and high operational costs. Some businesses continue to maintain their headquarters in California but have either scaled back on their expansion plans or have raised concerns regarding the state’s regulations, labor issues, and property crime rates.

Regulatory Challenges Facing Businesses

The ambitious climate regulations in California require businesses to report greenhouse gas emissions and manage energy use—initiatives that are often costly and challenging, especially for smaller firms. These regulations have led to criticisms that they stifle growth and innovation among businesses attempting to find successful market strategies within the state.

In response to Lemonis’s critique, the office of California Governor Gavin Newsom suggested that his comments were more focused on rebuilding reputation than on providing substantive criticism of California’s business environment. Governor Newsom pointed to the state’s budget surpluses and high levels of investment as evidence of a sustainable business landscape that supports economic activity.

The Business Community’s Perspective

Advocacy groups assert that many of the regulations in place are designed to protect public welfare and worker rights, while business organizations are calling for a “common sense” approach in regulatory policies to foster a more conducive business atmosphere. There exists a consensus among various business leaders, including Lemonis, on the need for policies that achieve a balance between equitable goals and the viability and competitiveness of businesses operating in California.

As a result of these ongoing discussions and the evolving regulatory framework, many retailers are beginning to innovate and adjust their business models to thrive outside of the conventional retail framework. This adaptation includes focusing on online sales and promoting more flexible delivery options in response to California’s challenging business landscape.

Conclusion

As Bed Bath & Beyond looks to navigate its post-bankruptcy relaunch strategy, the decisions made by Lemonis indicate a response to the broader challenges businesses face in California. As the landscape continues to evolve, the balance between business and regulatory interests will likely remain a critical topic for ongoing discussions.

FAQ

Key Features Summary

Deeper Dive: News & Info About This Topic

• Business Wire: Statement from Marcus Lemonis
• MSN: Bed Bath & Beyond’s Store Opening Decision
• Fox Business: Marcus Lemonis on Business Regulations
• Entrepreneur: Marcus Lemonis on California Regulations
• Wikipedia: 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.