California, August 28, 2025
News Summary
Following its bankruptcy filing, Bed Bath & Beyond will not reopen any stores in California, citing high operational costs and stringent regulations. The company plans to enhance online shopping options for Californians, including same-day delivery. Governor Gavin Newsom expressed skepticism about the retailer’s future relevance. The decision reflects broader challenges faced by businesses in California, prompting some firms to relocate due to high expenses and regulatory hurdles. Retail theft concerns also influence the operational environment, leading to new propositions aimed at addressing these issues.
California — Bed Bath & Beyond has announced that it will not reopen any stores in California following its bankruptcy filing in April 2023. The decision comes after the company closed 360 locations prior to its relaunch in June 2023, under new ownership by Overstock, which acquired the retailer’s intellectual property and rebranded it as The Brand House Collective.
Marcus Lemonis, the executive chairman, cited California’s “overregulated, expensive, and risky” business landscape as a primary reason for the decision. He pointed out that high taxes, increased fees, elevated wages, and stringent regulations hinder the company’s ability to operate profitably in the state.
Although Bed Bath & Beyond will not have a physical presence in California, the company has implemented a dedicated “California strategy” that aims to provide residents with access to online shopping. This includes offering same-day delivery and quick shipping services, thus enabling Californians to shop from the brand despite the absence of local stores.
Governor Gavin Newsom of California responded to Lemonis’s statements with skepticism, suggesting that the retailer’s relevance may be questionable following its bankruptcy. This skepticism aligns with a broader trend in which a growing number of companies have relocated from California due to high operational costs and regulatory challenges; over 350 firms moved out of the state between 2018 and 2021.
The challenges faced by Bed Bath & Beyond echo concerns voiced by other business leaders in California. For instance, Lynsi Snyder, CEO of In-N-Out, has expressed frustrations with the state’s business environment, reflecting a widespread sentiment among entrepreneurs and executives.
Retail theft has also surged in California, raising additional concerns about safety and the operational viability of businesses. In response to this rising issue, California voters approved Proposition 36 in November 2024, which reclassified repeat shoplifting offenses as felonies to combat increased criminal activities impacting retailers.
As Bed Bath & Beyond focuses on reestablishing itself with online offerings and will be testing a new location in Nashville, the decision to steer clear of California reinforces ongoing discussions about the state’s business climate, which remains under scrutiny as state officials seek to attract and retain companies.
Despite the departure of Bed Bath & Beyond from California’s retail landscape, it underscores the complexities faced by businesses operating in a state known for its stringent regulations and economic pressures.
FAQ
Why did Bed Bath & Beyond file for bankruptcy?
Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023 due to financial struggles and the closure of numerous underperforming stores.
What is The Brand House Collective?
The Brand House Collective is the new name and identity under which Bed Bath & Beyond will operate, following its acquisition by Overstock.
Why is Bed Bath & Beyond not reopening in California?
Bed Bath & Beyond has cited California’s high operational costs, complex regulations, and business climate as reasons for not reopening any stores in the state.
How will Californians shop from Bed Bath & Beyond now?
Californians can still shop through Bed Bath & Beyond’s online platform, which includes services like same-day delivery and quick shipping.
What actions have been taken to address retail theft in California?
Following the rise in retail theft, California voters approved Proposition 36 in November 2024 to make repeat shoplifting offenses felonies.
| Feature | Details |
|---|---|
| Bankruptcy Filing | April 2023 |
| Store Closures | 360 stores closed before relaunch |
| New Ownership | Acquired by Overstock and rebranded |
| New Location to Open | Nashville (test site for future stores) |
| California Strategy | Online shopping with same-day delivery |
| California Challenges | High taxes, regulations, safety, retail theft |
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: Bed Bath & Beyond in California
- Wikipedia: Bankruptcy
- KRON4: Bed Bath & Beyond Bashes California
- Google Search: Bed Bath and Beyond California
- Desert Sun: At Home California Store Closures
- Encyclopedia Britannica: Retail
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores
- Google Scholar: Business Climate California
- The Hill: Newsom on California Business Environment
- Google News: California Business Challenges
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.
