California, August 25, 2025
News Summary
Bed Bath & Beyond’s executive chairman announced that the retailer will not reopen any stores in California following its bankruptcy filing. The decision reflects the state’s challenging business environment, which the chairman claims is overregulated and costly. This move has sparked discussions about California’s climate for businesses, with other companies also expressing dissatisfaction. Despite the closure of physical stores in California, online shopping options remain available. Meanwhile, Bed Bath & Beyond has rebranded as Beyond, Inc. and is planning expansions outside the state.
California’s business landscape is facing scrutiny following Bed Bath & Beyond’s declaration that it will not reopen any stores in the state after its recent bankruptcy filing. The retailer, which had previously operated over 80 locations in California, closed all its stores nationwide in 2023 due to a series of unsuccessful turnaround strategies that resulted in mounting debt. The decision to keep the California stores shuttered has been attributed to the challenging business environment in the state.
Bed Bath & Beyond’s executive chairman, Marcus Lemonis, criticized California’s regulatory and financial conditions, claiming they hinder the ability to hire employees, maintain stores, and provide value to customers. He described California as one of the most overregulated and risky environments in the country for businesses. As a result of these practical business considerations, Bed Bath & Beyond has chosen not to invest in reopening stores in California.
The state government responded to Lemonis’s remarks through Governor Gavin Newsom’s office, expressing surprise and wishing Bed Bath & Beyond well in its efforts to gain relevance again. This conversation is not isolated; other high-profile companies, including In-N-Out, Tesla, and Chevron, have similarly expressed dissatisfaction with California’s business climate, with some relocating their headquarters to states like Texas.
Data from the Bureau of Labor Statistics indicates that more companies have left California than entered since 2015, fueling a growing narrative about the state’s business unfavorable climate. However, some economists argue that California remains a global tech hub, highlighting factors that continue to attract businesses despite the challenges posed by regulations and taxes.
Recently, Bed Bath & Beyond, now rebranded as Beyond, Inc., opened its first new store in Nashville after its bankruptcy, with plans to launch approximately 300 more stores across various locations in the next two years. Although the company has moved forward, its absence of physical stores in California reflects the ongoing complexities of its operational strategy, particularly in regions perceived as unfriendly to business.
Although Overstock.com acquired Bed Bath & Beyond’s assets following its bankruptcy and now operates under the Beyond, Inc. banner, online shopping options are still available for Californians. The absence of physical stores is primarily due to the perceived prohibitive costs and regulations that make expansion in California unfeasible.
Amidst Lemonis’s criticism, discussions about California’s business environment are ongoing. Some local politicians, like San Jose Mayor Matt Mahan, are advocating for reforms to create a more business-friendly climate, hoping to reverse the trend of companies leaving the state. The complexities of California’s corporate income tax against Texas’s gross receipts tax further complicate comparisons between the two states’ business environments.
Overall, while Bed Bath & Beyond and other companies have voiced their challenges in California, the state’s unique advantages as a technological epicenter continue to generate significant discussion regarding its future as a business destination.
FAQ Section
What led to Bed Bath & Beyond’s bankruptcy?
Bed Bath & Beyond filed for bankruptcy in 2023 after a series of unsuccessful turnaround strategies that led to mounting debt.
Why is Bed Bath & Beyond not reopening stores in California?
The executive chairman, Marcus Lemonis, cited California’s overregulated and expensive business environment as a critical reason for not reopening locations.
How many stores did Bed Bath & Beyond have in California before bankruptcy?
Before bankruptcy, Bed Bath & Beyond operated over 80 stores in California.
What is the current status of Bed Bath & Beyond after bankruptcy?
Bed Bath & Beyond’s assets were acquired by Overstock.com, and the company has been rebranded as Beyond, Inc., opening new locations outside California.
Has the California government responded to Bed Bath & Beyond’s decision?
Yes, the office of Governor Gavin Newsom expressed surprise at the decision and wished the company well in its future endeavors.
Key Features Overview
| Feature | Details |
|---|---|
| Bankruptcy Filing | In 2023, Bed Bath & Beyond filed for bankruptcy after multiple unsuccessful turnaround attempts. |
| No Store Openings in California | Executive Chairman Marcus Lemonis announced a halt on reopening stores in California due to business climate concerns. |
| Previous Operations | Over 80 stores in California were closed post-bankruptcy filing. |
| New Brand Introduction | Bed Bath & Beyond’s assets were acquired, leading to a rebranding as Beyond, Inc. with plans for expansion outside California. |
| California’s Business Environment | The state has faced criticism from various companies regarding its regulations, impacting their operations. |
Deeper Dive: News & Info About This Topic
- ABC7 News
- Forbes
- People
- USA Today
- Los Angeles Times
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond
- Google Scholar: Bed Bath & Beyond
- Encyclopedia Britannica: Bed Bath & Beyond
- Google News: Bed Bath & Beyond
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.
