Bed Bath & Beyond Says It Will No Longer Operate In California’s ‘Overregulated’ System

Bed Bath & Beyond has officially announced it will no longer operate in California, citing the state’s hostile regulatory environment as a key reason for the decision.

“This decision isn’t about politics — it’s about reality,” said Executive Chairman Marcus Lemonis in a statement posted Wednesday on X. “California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our customers in that position.”

Lemonis criticized the state for building “one of the most overregulated, expensive, and risky environments for businesses in America,” claiming it hinders job creation, store operations, and value delivery to consumers.

According to the company, rising taxes, excessive fees, and unsustainable labor costs have created an impossible situation. Bed Bath & Beyond says it will continue selling to Californians through its website, which allows the company to bypass what it described as the “inflated costs created by an unsustainable model.”

“We’re taking a stand because it’s time for common sense. Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices. California’s system delivers the opposite,” the statement read.

The office of Governor Gavin Newsom responded flippantly on X, writing: “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed. We wish them well in their efforts to become relevant again as they try to open a 2nd store.”

The retail chain filed for Chapter 11 bankruptcy in April 2023, leading to the liquidation of all its stores and assets. In 2024, Bed Bath & Beyond merged with Kirkland’s Home and began a nationwide rebranding effort.

Lemonis confirmed that the company plans to roll out 300 new “smaller format” neighborhood stores across the country. The first “Bed Bath & Beyond Home” location opened in Nashville earlier this month.