California, August 25, 2025
News Summary
Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced the company will not reopen its stores in California post-bankruptcy, citing a challenging business environment. The retail giant previously operated over 80 locations in the state but now focuses on expanding its reach elsewhere, including the opening of new stores in Nashville. Despite California’s reputation as a tech hub, many businesses, including notable brands, express dissatisfaction with its regulatory landscape. Lemonis highlighted the unsustainable costs of maintaining a physical presence in California.
California has seen significant shifts in business operations as Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced that the company will not reopen any of its stores in the state following its bankruptcy in 2023. The retail giant, which previously operated over 80 stores in California, has cited the state’s challenging business environment as a key factor in this decision.
Bed Bath & Beyond filed for bankruptcy after unsuccessful attempts at turnaround strategies that left it with mounting debt. As part of its restructuring, the company closed all stores nationwide, making it a significant moment in retail history. Following the bankruptcy, Lemonis expressed concerns about California’s regulatory and financial landscape, claiming it is “one of the most overregulated, expensive, and risky environments for businesses” in the country. This situation, he stated, complicates hiring and maintaining operations, thereby affecting the ability to deliver value to customers.
In response to Lemonis’ remarks, Governor Gavin Newsom’s office indicated a belief that Bed Bath & Beyond was no longer active in the retail sector and wished the company well in its future endeavors.
Bed Bath & Beyond is not the only company to voice displeasure about doing business in California. Notable corporations like In-N-Out, Tesla, and Chevron have also expressed dissatisfaction with the state’s business climate, with some relocating to more business-friendly states such as Texas. Data from the Bureau of Labor Statistics reveals a net loss of companies in California, with more leaving than entering since 2015.
Despite the controversies around California’s economic environment, economists argue that the state remains a premier global technology hub and provides significant advantages that companies can capitalize on for growth. However, many businesses continue to face challenges such as high corporate taxes and stringent regulations that make operating within the state complex.
In August 2023, Bed Bath & Beyond reopened its first new store in Nashville and has plans to launch approximately 300 more locations in the next two years. Additionally, Overstock.com, which acquired Bed Bath & Beyond’s assets, has rebranded the operations under the name Beyond, Inc. This new entity has started providing online shopping options to Californians despite having no physical stores in the state.
The decision to avoid physical expansion in California is based on practical business considerations as Lemonis emphasizes the unsustainable costs and regulations associated with maintaining a physical storefront in the state. Meanwhile, some California politicians have criticized Lemonis, while others, like San Jose Mayor Matt Mahan, advocate for fostering a more business-friendly environment that could invite companies to stay or relocate.
Economic comparisons between California and other states, such as Texas, can be complex due to different taxation structures. California imposes a corporate income tax, while Texas employs a gross receipts tax, complicating direct comparisons of business viability.
Recently, Bed Bath & Beyond’s name and intellectual property were re-acquired from Overstock and are set for a relaunch aimed at addressing contemporary consumer needs, signaling a shift in strategy that may influence future business activity. As Bed Bath & Beyond navigates these changes, it remains to be seen how the challenges posed by the Californian business environment will impact its long-term viability and presence in the retail market.
Frequently Asked Questions
What prompted Bed Bath & Beyond to file for bankruptcy?
Bed Bath & Beyond filed for bankruptcy due to several unsuccessful turnaround strategies that left the company with substantial debt.
Why will Bed Bath & Beyond not reopen stores in California?
Marcus Lemonis cited California’s overregulated and costly business environment as the primary reason for not reopening stores in the state.
How many stores did Bed Bath & Beyond operate in California before bankruptcy?
Before its bankruptcy, Bed Bath & Beyond operated over 80 stores in California.
What is the current status of Bed Bath & Beyond’s operations?
Bed Bath & Beyond has opened a new store in Nashville and plans to launch approximately 300 more stores across the U.S.
Who acquired Bed Bath & Beyond’s assets, and what is their new plan?
Overstock.com acquired Bed Bath & Beyond’s assets and has rebranded as Beyond, Inc. They offer online shopping options to Californians despite not reopening physical stores in the state.
Key Features Overview
| Feature | Details |
|---|---|
| Bankruptcy Filing | Filed in 2023 after unsuccessful turnaround attempts. |
| Store Operations | Closed all stores nationwide; over 80 in California pre-bankruptcy. |
| Executive Chairman’s Comments | Criticized California’s business environment as overregulated and expensive. |
| New Ownership | Acquired by Overstock.com and rebranded as Beyond, Inc. |
| Future Plans | Plans for 300 new stores, beginning with a location in Nashville. |
Deeper Dive: News & Info About This Topic
- ABC7 News
- Forbes
- People
- USA Today
- Los Angeles Times
- Wikipedia: Bed Bath & Beyond
- Google Search: California business environment
- Google Scholar: California business regulations
- Encyclopedia Britannica: Business
- Google News: Bed Bath & Beyond California
Author: STAFF HERE HOLLYWOOD
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