Bed Bath & Beyond Halts New Store Openings in California

Closed retail store in California with signage

California, August 24, 2025

News Summary

Bed Bath & Beyond has announced it will not open new retail stores in California due to the state’s high operational costs and business challenges. This decision follows the company’s bankruptcy filing in 2023, leading to the closure of over 300 stores nationwide. The company’s executive chairman cited California as being excessively regulated and expensive. Although there are plans for physical stores in smaller formats elsewhere, California remains off the table for now. Californians can still shop online with expedited delivery options available.

California – Bed Bath & Beyond has announced that it will not open or operate any new retail stores in California, a decision attributed to the state’s challenging business environment. The executive chairman of the company expressed that California is one of the most overregulated, expensive, and risky places for businesses in America.

This declaration does not stem from political motivations but rather reflects the operational realities that many companies face in the state. Issues such as higher taxes, fees, and wages have made it increasingly difficult for businesses to maintain their operations. According to the company, these financial strains hinder employment opportunities, keep stores shuttered, and ultimately prevent the delivery of value to customers.

Bed Bath & Beyond’s decision comes in the wake of its bankruptcy filing in 2023, which resulted in the closure of all of its more than 300 stores across the country. Following this financial setback, the company has worked on a rebrand and recently introduced its first physical location under the new name, Bed Bath & Beyond Home, situated in Nashville. This marks a significant shift for the retailer as it aims to reposition itself in the market.

The company has partnered with Brand House Collective, a specialty retailer, to oversee the Bed Bath & Beyond brand, adopting a new strategy that involves further physical store openings in a curated, smaller format. However, California remains off the table for future expansions until there is a change in the business climate. Despite this, Californians will still have the opportunity to shop online at BedBathandBeyond.com, which offers 24-48 hour delivery and same-day service for selected products.

The California governor’s office has responded to the criticisms voiced by the executive chairman, stating that it believed Bed Bath & Beyond had closed for good following its bankruptcy declaration. This situation aligns with a broader trend in California, where several companies have relocated due to the perceived difficulties of doing business in the state.

Key Issues Highlighted by Bed Bath & Beyond

  • High Costs: California’s higher taxes, fees, and wages make it difficult for businesses to operate profitably.
  • Operational Challenges: The stringent regulations contribute to challenges in hiring staff and maintaining store operations.
  • Rebranding Efforts: After declaring bankruptcy, Bed Bath & Beyond has begun a rebranding initiative with new physical locations outside of California.
  • Online Shopping Options: Consumers in California can still access products through the company’s online platform.

Background Context on California’s Business Environment

California is known for its stringent business regulations and high operational costs. Over the years, many companies have expressed concerns about the state’s business climate, leading to a trend of relocations amidst rising challenges in maintaining profitability. Bed Bath & Beyond’s recent decision acts as a reflection of ongoing struggles faced by retailers in the Golden State.

Conclusion

The future of Bed Bath & Beyond in California remains uncertain as the company has stated that it will not consider expansion in the state until favorable conditions arise. Meanwhile, the focus will shift towards online sales and potential openings in other locations where operational challenges are less pronounced.

FAQ

Why is Bed Bath & Beyond not opening stores in California?
The company cited California’s high costs, regulatory environment, and operational challenges as reasons for avoiding new store openings.
What happened to Bed Bath & Beyond in 2023?
Bed Bath & Beyond declared bankruptcy and closed all of its over 300 stores nationwide.
Is the decision to avoid California stores politically motivated?
No, the decision is based on operational realities rather than political considerations.
What are the alternatives for Californians to shop at Bed Bath & Beyond?
Californians can shop online at BedBathandBeyond.com, with options for expedited delivery services.
What is the plan for Bed Bath & Beyond in terms of future store openings?
The company plans to open more physical stores in smaller, curated formats, but California is currently excluded from these plans.

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STAFF HERE MISSION VIEJO WRITER
Author: STAFF HERE MISSION VIEJO WRITER

MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.

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