California, September 5, 2025
News Summary
Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced the pause on new store openings in California, citing high operational costs and regulatory burdens. Following the company’s recent bankruptcy filing, it plans to focus on enhancing its online delivery services, promising prompt deliveries to California consumers. Critics argue that California’s stringent regulations hinder business growth, prompting many companies to reconsider their expansion strategies in the state.
California – Bed Bath & Beyond’s executive chairman, Marcus Lemonis, has officially declared that the company will halt new store openings in California, attributing this decision to the state’s high operational costs and significant regulatory burdens. In his assessment, the challenging business environment in California has made it untenable for the retailer to expand its physical presence in the state, highlighting the economic realities that drive this critical business decision rather than political motivations.
Bed Bath & Beyond, which recently filed for bankruptcy in 2023, is preparing for a relaunch focused on enhancing its online delivery services within California. The company aims to deliver products to California consumers within 24–48 hours, a move that aligns with the growing trend towards e-commerce as traditional retail faces numerous challenges.
While California is known for being a hub of innovation, driven by industries such as technology in Silicon Valley and entertainment in Hollywood, it has also gained a reputation for its tough regulatory environment. Many critics argue that these regulations deter business growth and innovation by imposing significant costs and strict compliance requirements on companies operating within the state.
According to recent data, more businesses have left California than have established operations there since 2015. Numerous notable companies, including Chevron, Tesla, SpaceX, and Charles Schwab, have relocated parts of their operations to states like Texas, Florida, and Nevada, often citing regulatory challenges as a primary factor for their relocation. While some companies maintain their headquarters in California, many are choosing to limit expansion plans or have voiced concerns regarding regulations, labor issues, and rising property crime rates.
The stringent climate regulations in California require businesses to provide detailed reports on greenhouse gas emissions and enforce energy mitigation strategies. Critics argue that while such regulations are intended to protect the environment, they impose heavy financial burdens, particularly on smaller businesses striving to comply.
In response to Lemonis’s remarks, California Governor Gavin Newsom’s office indicated that his comments could be more reflective of Bed Bath & Beyond’s attempts at reputation recovery rather than offering a fair critique of the state’s business climate. Governor Newsom pointed to California’s budget surpluses and significant investment levels as indicators of a robust and sustainable business environment.
Advocacy groups defend California’s regulatory framework by asserting that many of these regulations are designed to protect public and worker interests. Meanwhile, business groups are advocating for what they describe as “common sense moderation” in these policies. Leaders in the business community, including Lemonis, emphasize the need for regulatory policies that strike a balance between equitable goals and fostering a competitive business environment.
Amidst these challenges, retailers and other businesses are increasingly exploring innovative strategies beyond California’s regulatory framework, aiming to maintain profitability and growth in the face of significant operational hurdles.
FAQ
Why is Bed Bath & Beyond halting new store openings in California?
The company is halting new store openings due to high operational costs and regulatory burdens that create a challenging business environment in California.
What is Bed Bath & Beyond’s strategy following its bankruptcy?
After filing for bankruptcy in 2023, the company is focusing on enhancing its online delivery service, promising delivery within 24-48 hours for California residents.
How have California regulations impacted businesses?
California’s stringent regulations are considered by some to impose significant costs and hinder business growth and innovation, prompting many companies to relocate or change their expansion strategies.
What are the broader trends for businesses in California?
There is a growing trend among businesses to innovate outside of California’s regulatory framework, with many retail leaders focusing on adapting their strategies in order to maintain profitability amid challenges.
Key Features and Trends
| Feature | Details |
|---|---|
| Store Openings | Paused in California due to high costs and regulations |
| Delivery Focus | Focusing on rapid online delivery with promises of 24-48 hour deliveries |
| Regulatory Environment | Criticized for being burdensome and deterring business growth |
| Relocation Trends | More businesses have moved out of California than have entered since 2015 |
| Corporate Responses | Companies voicing concerns about regulations, labor issues, and property crime |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- MSN: Bed Bath & Beyond Halts Store Openings
- Entrepreneur: Marcus Lemonis on California Regulations
- Wikipedia: California
- Google Search: Bed Bath & Beyond California
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
