Bed Bath & Beyond chairman blasts California as ‘overregulated, expensive, and risky’ — refuses to reopen stores there. Here’s Gov. Newsom’s response

One place it will not return to is California.

“California has created one of the most overregulated, expensive, and risky environments for businesses in America,” executive chairman Marcus Lemonis said in a statement. He pointed to what he described as “higher taxes, higher fees, higher wages.”

California Gov. Gavin Newsom’s office fired back on social media platform X: "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."

California dreamin’ elsewhere

Lemonis has long been critical of California’s business environment, saying it makes it harder to keep stores open and deliver value to customers.

He emphasized that the retailer will still operate in “almost every other state.” While brick-and-mortar stores will not reopen in California, shoppers there can still make online purchases. To meet that demand, the company plans a dedicated “California strategy,” which includes same-day delivery in some areas and 24- to 48-hour shipping.

Bed Bath & Beyond isn’t alone in pulling back. Between 2018 and 2021, more than 350 firms moved their headquarters out of California, according to research by Lee E. Ohanian of the Hoover Institution and Joseph Vranich, a Texas-based business relocation consultant. Many were lured away by lower taxes, lighter regulations and friendlier business climates.

What it means for shoppers and businesses

The company is opening its first brick-and-mortar location since bankruptcy in Nashville under a slightly revised name: Bed Bath & Beyond Home.

Also looking beyond California was In-N-Out. CEO Lynsi Snyder made the move, expanding its burger chain outside the state by establishing a second headquarters in Franklin, Tennessee.