California, August 24, 2025
News Summary
Bed Bath & Beyond’s Executive Chairman announced a significant strategic shift for the retailer, opting to no longer open or operate stores in California due to the state’s regulatory challenges. Instead, the company will focus on an online-only model, providing expedited delivery options for consumers. This decision follows the company’s bankruptcy in 2023 and signals a broader trend among retailers adapting to changing market conditions. Governor Gavin Newsom’s office mocked the decision, while Lemonis emphasized it wasn’t politically motivated but a response to the business environment.
California—Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced that the home retailer will no longer open or operate any stores in California, citing the state as being one of the most “overregulated, expensive, and risky environments” for businesses in the United States. This significant pivot from traditional retail to a more robust online-focused strategy will center on expedited delivery services, featuring options for 24- to 48-hour delivery and in some instances, same-day service through its online platform, BedBathandBeyond.com.
This announcement comes on the heels of Bed Bath & Beyond’s bankruptcy filing in 2023, during which the company closed all its nationwide stores. The retailer successfully reopened its first location, Bed Bath & Beyond Home, near Nashville on August 8, 2024, signaling a gradual return to the market under a rebranded model. However, the decision to withdraw from California marks a substantial change as the company once operated over 80 locations across the state.
Governor Gavin Newsom’s press office responded to Lemonis’s announcement with mockery, suggesting that Bed Bath & Beyond had lost its relevance in the market. In contrast, Lemonis emphasized that the decision was not politically motivated but rather a response to the current business climate and the challenges posed by California’s regulatory environment.
California is noted for having a large consumer base, with nearly 39 million residents, which has led some state officials to argue that it remains a vital market for retailers despite the company’s decision. Lemonis has frequently expressed concern regarding California’s high taxes, fees, and stringent labor regulations, which he believes create an unsustainable environment for businesses.
The company’s strategic shift towards an online-only model is reflective of broader trends in the retail industry, where many retailers are adapting to a digital-first approach as consumer preferences evolve. This transition has been particularly pertinent during periods of inflation and changing shopping behaviors, especially with the back-to-school shopping season approaching.
Bed Bath & Beyond’s challenges, including its bankruptcy and subsequent rebranding as Beyond, Inc. following acquisition by Overstock.com, are indicative of an industry grappling with the pressures of a shifting economic landscape. Retail analysts suggest that these challenges are not unique to Bed Bath & Beyond but are part of larger pressures affecting retailers nationwide.
As the landscape for home retail continues to evolve, the implications of Bed Bath & Beyond’s decision highlight crucial shifts toward online commerce, raised discussions about regulatory impacts on businesses, and the ongoing dialogues between corporations and state governments concerning operating conditions.
FAQ
Why is Bed Bath & Beyond not opening stores in California?
Bed Bath & Beyond has decided to focus solely on an online model due to California’s regulatory environment being seen as too expensive and risky for business operations.
How many stores did Bed Bath & Beyond operate in California before the bankruptcy?
Prior to its bankruptcy, Bed Bath & Beyond operated over 80 locations in California.
What delivery options will Bed Bath & Beyond offer?
The retailer will provide 24- to 48-hour delivery, with some items available for same-day service through its online store.
What led to Bed Bath & Beyond’s bankruptcy?
The bankruptcy was part of challenges facing the brand, which include inflation, changing consumer behaviors, and operational struggles in a competitive retail environment.
What is the company’s new business model?
Bed Bath & Beyond has shifted to an online-only model, which is common among retailers adapting to changes in shopping preferences and consumer demands.
Key Features
| Feature | Details |
|---|---|
| Store Operations | No stores in California; online-only model |
| Delivery Options | 24-48 hour delivery; same-day service available |
| Bankruptcy History | Filed for bankruptcy in 2023, closed all stores |
| Rebranding | Now operates as Beyond, Inc. under Overstock.com ownership |
| Market Presence | Formerly over 80 stores in California |
Deeper Dive: News & Info About This Topic
- USA Today: Bed Bath & Beyond’s Exit from California
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores in California
- KMPH: Bed Bath & Beyond Exits California, Shifts to Online Sales
- People: Gavin Newsom Responds to Bed Bath & Beyond’s Decision
- The Hill: Newsom on California’s Business Environment
- Google Search: Bed Bath & Beyond California exit
- Wikipedia: Bed Bath & Beyond
- Encyclopedia Britannica: Retail
- 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.
