California, August 24, 2025
News Summary
Bed Bath & Beyond will not open stores in California, citing the state’s regulatory challenges and high operational costs. CEO Marcus Lemonis criticized California’s business environment, leading to the decision to focus on e-commerce and open 300 new neighborhood stores across the U.S., starting with one in Nashville. Governor Gavin Newsom responded to Lemonis, questioning the company’s relevance following its bankruptcy in 2023. The ongoing dialogue highlights larger issues regarding California’s business attractiveness.
California is witnessing significant changes in the retail landscape as Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, announced the company will not open any new stores in the state due to an unfavorable business environment. On August 20, 2025, Lemonis criticized California’s regulatory framework as being “overregulated, expensive, and risky,” leading to the decision to exclude the state from Bed Bath & Beyond’s resurgence strategy.
Bed Bath & Beyond, a company that declared bankruptcy and closed all its stores in 2023, is now focusing on revamping its brand by launching a plan that includes opening 300 new neighborhood stores across the nation. However, California is noticeably absent from this expansion. The first of the new concept stores, named Bed Bath & Beyond Home, opened in Nashville on August 8, 2025, marking the company’s new direction.
Lemonis emphasized that the exclusion of California is driven by economic factors rather than political motivations, stating the decision reflects the realities of doing business in the state. He highlighted the challenges posed by high taxes, fees, wages, and the burdensome regulatory landscape that impede profitability and sustainable business growth in California.
In response to Lemonis’s remarks, California’s Governor Gavin Newsom took to social media, questioning Bed Bath & Beyond’s relevance following its previous bankruptcy and store closures. He remarked that many assumed the company was defunct after its financial troubles.
Notwithstanding the lack of physical stores, Lemonis assured that Bed Bath & Beyond would continue to serve California customers through a delivery model, pivoting from the traditional retail approach to focus on e-commerce. This decision further underscores the evolving dynamics of retail operations in light of high operational costs in California.
The ongoing exchange between Lemonis and Newsom reflects broader discussions surrounding California’s attractiveness for businesses. Many companies are contemplating their future in California, with some opting to relocate due to soaring costs and regulatory concerns.
Lemonis has called for “common sense governance” that could lead to an improved business climate in California, making it attractive for companies to operate within the state. This opinion divides perspectives on the role of government regulation, balancing the need to safeguard workers and the quality of life while addressing concerns that excessive regulation deters business prospects.
The current economic landscape of Bed Bath & Beyond includes a two-pronged approach focusing on e-commerce expansion while eliminating the need for physical storefronts in California until conditions improve significantly. A spokesperson from the Brand House Collective, which oversees Bed Bath & Beyond, reiterated that although there are plans for further expansion, California is currently not part of the roadmap due to the existing economic climate.
Additional Context surrounding Bed Bath & Beyond’s Challenges
The closure of all Bed Bath & Beyond stores in California represents a facet of the struggles the company faced leading up to its bankruptcy in 2023. As many retailers adapt to changing consumer behaviors and economic challenges, Bed Bath & Beyond’s strategy reflects a shift towards a more digital-focused and cost-effective retail model.
Summary of Current Situation
- No new Bed Bath & Beyond stores in California due to unfavorable regulations and high costs.
- The company plans 300 new neighborhood stores across the U.S. without any in California.
- The first new store opened in Nashville on August 8, 2025.
- Bed Bath & Beyond will continue to service California via delivery instead of physical stores.
- Governor Newsom criticized the relevance of the business following its bankruptcy.
- Lemonis advocates for common sense governance to enhance California’s business environment.
Frequently Asked Questions (FAQ)
Why won’t Bed Bath & Beyond open stores in California?
How will Bed Bath & Beyond serve customers in California?
What is the company’s expansion strategy?
Key Features of Bed Bath & Beyond’s Retail Strategy
| Feature | Description |
|---|---|
| Store Closures | All stores in California will remain closed as part of a broader strategy. |
| New Stores | 300 new neighborhood stores are set to open nationwide, with the first in Nashville. |
| Delivery Model | The company will utilize e-commerce and delivery services to cater to California customers. |
| Governance Request | Lemonis has urged for a simpler, more business-friendly regulatory environment in California. |
| Bankruptcy Context | Bed Bath & Beyond filed for bankruptcy in 2023 before its rebranding efforts. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- USA Today: California Governor Newsom on Bed Bath & Beyond
- San Francisco Chronicle: Bed Bath & Beyond California Stores
- Fox Business: Retail Outlook for Bed Bath & Beyond
- CBS News: Bed Bath & Beyond Stores in California
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond California
- Google Scholar: Bed Bath & Beyond
- Encyclopedia Britannica: Bed Bath & Beyond
- Google News: Bed Bath & Beyond
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles 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 Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
