California, August 25, 2025
News Summary
Bed Bath & Beyond’s bankruptcy has led to the closure of all its stores in California. Executive Chairman Marcus Lemonis cites the state’s overregulation and high costs as key factors in the decision to not reopen. Although its physical stores are gone, the brand’s assets are now under Overstock.com, which plans to expand their retail presence in other states while offering online shopping options to California residents.
California has become a focal point in the ongoing struggles of Bed Bath & Beyond, as the company’s executive chairman, Marcus Lemonis, announced that the retailer will not reopen stores in the state following its recent bankruptcy filing. This marks a significant departure from the company’s previous presence, where it had operated over 80 stores in California before declaring bankruptcy in 2023.
Bed Bath & Beyond filed for bankruptcy as a result of several unsuccessful turnaround strategies that led to overwhelming debt. In the wake of this filing, the company closed all of its retail locations across the United States. Lemonis, who is also a well-known entrepreneur, cited California as “one of the most overregulated, expensive, and risky environments for businesses” in America, stating that these factors contribute to challenges in hiring employees, maintaining operations, and delivering value to customers.
Despite these challenges, Lemonis emphasized that the company’s decision to avoid physical store openings in California was based on practical business considerations rather than political motivations. In response, officials from Governor Gavin Newsom’s office indicated their belief that Bed Bath & Beyond was no longer operational and wished the retailer the best in attempting to regain relevance in the market.
Further complicating the business landscape in California, high-profile companies such as In-N-Out, Tesla, and Chevron have also expressed concerns about the state’s regulatory environment, leading some to relocate their headquarters to states like Texas. Since 2015, a trend has emerged showing that more companies have exited California than entered, as indicated by data from the Bureau of Labor Statistics. While some analysts criticize California’s business climate, others argue that the state continues to be a leading global tech hub, offering significant advantages to tech companies.
In a recent turn of events, Bed Bath & Beyond’s assets were acquired by Overstock.com, which has rebranded retail operations under the name Beyond, Inc. This new company has plans to open approximately 300 stores across the United States over the next two years, beginning with a new store opening in Nashville in August 2023. While physical locations will not be established in California, Beyond, Inc. is offering online shopping options for consumers in the state.
Despite the newfound opportunities online, Lemonis noted that California’s costs and regulatory requirements pose insurmountable obstacles for the establishment of physical stores. While some California politicians have criticized Lemonis’s stance, there are advocates, such as the mayor of San Jose, calling for improvements to foster a more business-friendly environment in the state.
Economic analysts have pointed out that California’s corporate income tax structure complicates direct comparisons with states such as Texas, which employs a gross receipts tax. Meanwhile, Bed Bath & Beyond is set to relaunch its name and intellectual property, targeting modern consumer needs while navigating the complexities of today’s retail landscape.
FAQ
Why isn’t Bed Bath & Beyond reopening in California?
Bed Bath & Beyond’s executive chairman expressed concerns over California’s overregulation and high costs, deeming the business environment too risky for the company’s physical store operations.
What has happened to Bed Bath & Beyond after filing for bankruptcy?
The company closed all of its retail locations and its assets were acquired by Overstock.com, which rebranded operations as Beyond, Inc., focusing on online shopping and planning new store openings in other states.
How has California’s business environment been described?
California’s business environment has been described as overregulated and expensive, which has led several high-profile companies to express dissatisfaction and, in some cases, relocate elsewhere.
Key Features Summary
| Feature | Detail |
|---|---|
| Bankruptcy Filing | Bed Bath & Beyond filed for bankruptcy in 2023, closing all stores. |
| Store Presence in California | Previously operated over 80 stores; now no plans to reopen. |
| Executive Chairman’s Statement | Described California as a challenging business environment due to regulations and costs. |
| Acquisition | Overstock.com acquired assets, rebranding as Beyond, Inc. |
| New Openings | A plan to open about 300 stores, starting in Nashville. |
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Author: STAFF HERE HUNTINGTON BEACH
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