California, August 28, 2025
News Summary
Bed Bath & Beyond has announced that it will not reopen its stores in California following its Chapter 11 bankruptcy filing in April 2023. The company closed 360 stores and has been acquired by Overstock, which will focus on online sales for California customers. Issues raised by the chairman regarding California’s business environment include high taxes and strict regulations, which have resulted in many businesses reconsidering their presence in the state. Governor Gavin Newsom has expressed skepticism regarding these claims, highlighting ongoing tensions between state officials and businesses.
California: Bed Bath & Beyond Will Not Reopen Stores Following Bankruptcy
Bed Bath & Beyond has announced that it will not bring its stores back to California after filing for Chapter 11 bankruptcy in April 2023. The retailer closed 360 of its stores and was subsequently acquired by Overstock, which plans to relaunch the brand under a new name, The Brand House Collective. While a new test location is set to open in Nashville, California customers will only have access to online shopping options.
Reasons for Decision
Executive chairman Marcus Lemonis cited several challenges associated with operating in California, referring to the business environment as “overregulated, expensive, and risky.” He pointed to the state’s high taxes, elevated fees, increased wages, and stringent regulations as barriers hindering business operations. These factors have led many companies to reconsider their presence in California, a trend that has resulted in over 350 businesses relocating out of the state between 2018 and 2021.
Online Shopping to Continue
Despite the company’s decision not to reopen physical locations, Californians will still have access to online shopping through a dedicated “California strategy.” This initiative includes same-day delivery and expedited shipping options to meet consumer demands in the state.
Responses from State Officials
California Governor Gavin Newsom expressed skepticism regarding Lemonis’s claims, suggesting that Bed Bath & Beyond’s relevance is questionable following its bankruptcy. The comments highlight ongoing tensions between state officials and businesses regarding the operational climate in California.
Wider Context of Business Relocation
Bed Bath & Beyond is not alone in facing challenges within the state. Companies like In-N-Out Burger have echoed similar frustrations concerning regulatory obstacles. Additionally, the state has seen a significant rise in retail theft, which executives, including Lemonis, have identified as a critical safety concern that affects business viability.
In response to rising retail theft, California voters passed Proposition 36 in November 2024, which makes repeat shoplifting offenses felonies. This legislative move aims to address the growing issue and restore confidence among retailers operating in the state.
Current Trends and Outlook
The ongoing changes in business operations and perceptions regarding California’s business environment are under scrutiny as the state strives to maintain its appeal for companies. With numerous businesses weighing their options, the effects of regulatory frameworks and operational costs continue to influence decisions about establishing or maintaining a presence in California.
Conclusion
The decision by Bed Bath & Beyond not to reopen in California reflects broader trends of business relocation and concerns over the state’s operational climate. Online access remains available to California customers, yet the future of physical retail presence in the state appears uncertain.
FAQ
What is happening with Bed Bath & Beyond in California?
Bed Bath & Beyond will not reopen its stores in California after its bankruptcy filing. The company has transitioned under new ownership and will focus on online shopping for Californians.
Why is Bed Bath & Beyond avoiding California?
The company’s executive chairman cited California’s high taxes, fees, wages, and strict regulations as major barriers to reopening stores in the state.
Will Californians still be able to shop from Bed Bath & Beyond?
Yes, Californians can access Bed Bath & Beyond through online shopping and will have options for same-day delivery and expedited shipping.
What recent laws have been passed regarding retail theft in California?
In November 2024, California voters approved Proposition 36, which makes repeat shoplifting offenses felonies as a measure to combat rising retail theft.
Key Features Summary
| Feature | Description |
|---|---|
| Bankruptcy Filing | Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023. |
| Store Closures | The company closed 360 stores prior to the relaunch under new ownership. |
| New Ownership | Overstock acquired Bed Bath & Beyond’s intellectual property and has rebranded it. |
| California Presence | Bed Bath & Beyond will not reopen stores in California due to regulatory issues. |
| Online Shopping | Californians will have access to online shopping with same-day delivery options. |
| Retail Theft | Increased retail theft has raised concerns for businesses operating in California. |
Deeper Dive: News & Info About This Topic
- KRON4
- San Francisco Chronicle
- CBS News
- Los Angeles Times
- The Hill
- Wikipedia: California
- Google Search: Bed Bath and Beyond Bankruptcy
- Google Scholar: Bed Bath and Beyond California
- Encyclopedia Britannica: Retail
- Google News: California business environment
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