Bed Bath & Beyond to Avoid Opening Stores in California

California, August 24, 2025

News Summary

Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, has confirmed the decision not to open retail locations in California due to high taxes and regulatory burdens. Despite plans to launch 300 new neighborhood stores nationally, none will be located in California. The company’s first new concept store opened in Nashville, and it will focus on e-commerce for California customers instead. Lemonis has advocated for common-sense governance to improve the business climate in California, while Governor Newsom responded critically to the news.

California – Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, has announced that the company will not open retail locations in California. The decision, made public on August 20, 2025, stems from Lemonis’s concerns over California’s business environment, which he characterized as “overregulated, expensive, and risky.” This announcement comes as part of Bed Bath & Beyond’s broader strategy to revitalize the brand by launching 300 new neighborhood stores across the nation, though none will be located in California.

The first new concept store, named Bed Bath & Beyond Home, opened recently in Nashville on August 8, 2025. This initiative is part of an effort to rebrand and recover from past financial difficulties, including a bankruptcy filing in 2023 that resulted in the closure of all physical stores. While Lemonis has expressed a desire to serve California customers, he indicated that this would be restricted to delivery services rather than establishing any new physical stores.

In addressing the factors influencing this decision, Lemonis pointed to high taxes, various fees, elevated wages, and extensive regulatory compliance requirements as significant barriers to profitability. He emphasized that the reasoning behind staying out of California is grounded in economic calculations, rather than political motivations. This pragmatic approach underlines the company’s reassessment of where to allocate resources in the current business climate.

The announcement has sparked a response from Governor Gavin Newsom, who took to social media to mock Bed Bath & Beyond’s previous bankruptcy and question the relevance of the brand, hinting that its closure meant it was no longer a player in the retail sector. Such exchanges highlight a wider conversation regarding the viability of California as a business location, with numerous organizations reconsidering their operational strategies in the state due to similar regulatory and cost issues.

Lemonis has also advocated for “common sense governance” to enhance California’s business landscape, which he believes would create a more feasible environment for retail operations. This call aligns with ongoing debates surrounding government regulation, weighing the necessity of worker protection and quality of life against the potential impact of overregulation on business opportunities.

Despite the challenges, Bed Bath & Beyond plans to continue expanding its e-commerce platform to ensure that California customers can still access its products. A spokesperson for the Brand House Collective, which manages Bed Bath & Beyond, has stated that while there are intentions for further expansion, California will remain off the roadmap until conditions become more favorable for business growth.

Summary of Key Points:

• Bed Bath & Beyond will not open stores in California due to the state’s business challenges.
• The first new store, Bed Bath & Beyond Home, opened in Nashville as part of a national initiative.
• High taxes, wages, and regulatory burdens are cited as critical factors for the decision.
• Governor Gavin Newsom responded to the announcement, questioning the brand’s relevance after its bankruptcy.
• The company plans to serve California customers through delivery rather than physical stores.

Background Context:

In 2023, Bed Bath & Beyond faced significant financial difficulties that led to the closure of all its stores. Since then, the company has focused on redefining its strategy and consolidating its presence within the retail market. This latest move signifies a pivot towards more manageable business operations in response to distinct economic realities, especially in high-cost states like California.

FAQ Section

Deeper Dive: News & Info About This Topic

• Business Wire: Statement from Marcus Lemonis
• USA Today: Newsom Mocking Bed Bath & Beyond
• KTLA: Bed Bath & Beyond in California
• San Francisco Chronicle: California Stores Announcement
• Wikipedia: Bed Bath & Beyond

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.