California, September 13, 2025
News Summary
Bed Bath & Beyond announced on August 20 that it will not reopen stores in California as part of its post-bankruptcy rebranding. Executive Chairman Marcus Lemonis cited high costs and heavy regulations as reasons for the decision, indicating that California has become too risky for business operations. This move is part of a broader trend of companies relocating out of California due to its challenging business environment, with significant tax burdens and regulatory hurdles. While Bed Bath & Beyond expands to other states, California continues to face an exodus of businesses seeking more favorable conditions.
California is to be excluded from Bed Bath & Beyond’s return to brick-and-mortar retail, a significant decision announced on August 20. This move is part of the retailer’s post-bankruptcy rebrand to Bed Bath & Beyond Home. Executive Chairman Marcus Lemonis has criticized California’s heavy regulations and associated costs, declaring the state too risky for business operations. The decision highlights a broader trend as companies increasingly relocate out of California due to challenging business conditions.
The company’s criticism centers around California’s steep taxes, high fees, and regulatory hurdles that Lemonis argues stymie growth. Bed Bath & Beyond, which filed for bankruptcy in 2023, has already opened a new store in Tennessee and is planning to launch approximately 80 additional locations across the country next year. This strategic pivot away from California signifies the retailer’s desire to navigate a more favorable business landscape.
The exodus of businesses from California has been sharply escalating, as evidenced by the relocation of Realtor.com’s headquarters to Texas earlier this year to escape the state’s costly business environment. According to a report from the Public Policy Institute of California, business relocations are primarily influenced by costs associated with doing business, including taxes, regulations, and hiring expenses. The trend is pronounced: from 2011 to 2021, 789 companies relocated their headquarters from California, with a notable uptick in departures following 2017.
Data shows that the number of new firms moving into California has diminished significantly, decreasing from 137 in 2011 to just 68 in 2021. CEOs such as Don Peebles have observed that California is becoming increasingly challenging for businesses, with many reporting a decline in quality of life as a driving force behind relocation decisions. The Census Bureau indicates that over 690,000 residents left California for other states in 2023, a continuation of the trend from 2022 that witnessed over 817,000 fleeing the state.
Among the top destinations for former Californians, Texas leads with nearly 94,000 relocated residents, followed by Arizona and Florida. High taxes and an exorbitant cost of living consistently rank among the top reasons for the trend, as neither Texas nor Florida imposes a state income tax. Presently, the median home price in California stands at approximately $859,700, almost double the national median of $440,892, necessitating an annual income of about $213,447 to afford typical housing in the state.
Numerous high-profile companies, including Chevron and Tesla, have also opted for relocation to states with more advantageous tax and regulatory frameworks. Chevron announced its move to Houston, emphasizing cost and regulation burdens, while Tesla’s shift to Austin was influenced by high housing costs in the Bay Area. As the corporate migration continues, many smaller businesses are similarly grappling with California’s financial and regulatory challenges.
Local incentives have played a critical role in attracting businesses to other states. For example, Playboy recently moved its headquarters from Los Angeles to Miami Beach, highlighting the competitive landscape among states to attract companies. However, California still boasts a robust economy valued at approximately $4 trillion, continuing to attract businesses that find ways to navigate the existing challenges.
The ongoing shifts in business relocations signal broader changes in economic strategies and workforce trends, which may have long-term implications for California’s economy regarding its tax base and public services. As companies adapt to evolving business environments, it remains to be seen how California will respond to retain its corporate presence.
FAQ
Why is Bed Bath & Beyond excluding California from its retail return?
Bed Bath & Beyond is excluding California because of high regulatory costs and business risks as expressed by Executive Chairman Marcus Lemonis.
What are the reasons companies are moving out of California?
Companies are leaving California mainly due to high taxes, expensive living costs, and stringent regulations that make it difficult to operate efficiently.
How many companies relocated out of California between 2011 and 2021?
A total of 789 companies relocated their headquarters from California during this period, with an increase in moves since 2017.
What are the most popular states for Californians relocating?
The top destinations for those leaving California are Texas, Arizona, and Florida, owing to more favorable tax policies and living conditions.
How does California’s median home price compare to the national average?
The median home price in California is around $859,700, which is nearly double the national median of $440,892.
Deeper Dive: News & Info About This Topic
- Tech Times: Chevron, Tesla, Oracle Lead Wave of Companies Leaving California
- CoStar: Why Playboy is Joining California’s Corporate Exodus
- State Affairs: Businesses Leaving California
- Encyclopedia Britannica: Business Relocation
- CoStar: Playboy Joins Corporate Exodus from California
- Google Search: Business Trends in California
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
