California, August 25, 2025
News Summary
Following its bankruptcy filing in 2023, Bed Bath & Beyond will not reopen any former store locations in California. Executive chairman Marcus Lemonis cited the state’s overregulated and costly business environment as a major deterrent. Although the company operated over 80 stores in California prior to bankruptcy, it will now focus on online sales through its rebranded entity, Beyond, Inc., with plans for approximately 300 new stores in more favorable states.
California – Bed Bath & Beyond’s executive chairman, Marcus Lemonis, has announced that the company will not be reopening any of its former store locations in California following its bankruptcy filing in 2023. The company, which closed all of its stores nationwide after facing significant debt and failed turnaround efforts, cited California’s regulatory environment as a major reason for this decision.
Lemonis characterized California as one of the most overregulated, expensive, and risky environments for businesses in the United States. He argued that these conditions hinder hiring, pose challenges for keeping stores open, and reduce the ability to provide value to customers. Previously, Bed Bath & Beyond operated over 80 stores in the state before its bankruptcy.
While Lemonis emphasizes that his decision is rooted in practical business considerations rather than political sentiments, it comes at a time when several high-profile companies have expressed dissatisfaction with California’s business climate. Prominent examples include In-N-Out, Tesla, and Chevron, many of which have relocated their headquarters to states like Texas, seeking more favorable operating conditions.
In response to Lemonis’s comments, officials from Governor Gavin Newsom’s office indicated that they believed Bed Bath & Beyond was no longer in business, wishing them well in finding relevance again. Despite the ongoing scrutiny of California’s business environment, some economists argue that the state remains a leading global tech hub, boasting significant advantages that continue to attract and retain businesses.
According to data from the Bureau of Labor Statistics, more companies have exited California than entered the state since 2015. This trend is critical as it reflects the challenges businesses face while navigating the local regulatory framework, which critics often cite as burdensome. However, in August 2023, Bed Bath & Beyond opened its first new store in Nashville, with plans to launch approximately 300 more locations over the next two years.
Overstock.com has acquired Bed Bath & Beyond’s assets and has rebranded operations under the name Beyond, Inc. Although there will be no physical stores in California, the new company will provide online shopping options for customers in the state. Lemonis acknowledged that while online operations have thrived, the costs and regulatory requirements in California placed limitations on potential physical store expansions.
In the face of criticism from various California politicians, there are advocates like San Jose Mayor Matt Mahan who push for creating a more business-friendly environment in the state. Analysts note that although California has a corporate income tax, while Texas operates under a gross receipts tax, making straightforward comparisons of the business landscapes challenging.
Furthermore, Bed Bath & Beyond’s name and intellectual property were reacquired from Overstock and are being relaunched to address modern consumer needs effectively. The company aims to meet evolving shopping preferences, focusing heavily on online engagement as it moves forward in a post-bankruptcy era.
Key Takeaways
- Bed Bath & Beyond has decided against reopening stores in California due to a challenging business environment.
- The company cited issues with regulation, costs, and market conditions as deterrents.
- Despite the closure of its physical stores in California, Beyond, Inc. will offer online shopping options.
Frequently Asked Questions
Why won’t Bed Bath & Beyond reopen stores in California?
The company cites California’s overregulated, expensive, and risky business environment as the main reason for not reopening its locations in the state.
What is the current status of Bed Bath & Beyond?
Following bankruptcy in 2023, Bed Bath & Beyond has undergone restructuring and plans to launch new locations outside of California, alongside developing its online shopping service as Beyond, Inc.
Are there any plans for expansion in other states?
Yes, Bed Bath & Beyond plans to open about 300 new stores primarily in states with favorable business conditions over the next two years.
Comparison of Business Environments
| Feature | California | Texas |
|---|---|---|
| Regulatory Environment | Overregulated | Less regulated |
| Corporate Tax Type | Corporate Income Tax | Gross Receipts Tax |
| Cost of Doing Business | High | Lower |
Deeper Dive: News & Info About This Topic
- ABC7 News
- Forbes
- People
- USA Today
- Los Angeles Times
- Wikipedia: Business in California
- Google Search: Bed Bath and Beyond California
- Google Scholar: California Business Environment
- Encyclopedia Britannica: California
- Google News: Bed Bath and Beyond
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