Bed Bath & Beyond CEO Rejects California Expansion, Slams State’s Business Climate

Marcus Lemonis, CEO of Bed Bath & Beyond, has made headlines with a bold decision not to open any retail locations in California, citing the state’s burdensome regulatory environment and unsustainable economic model for businesses.

In a sharply worded public statement, Lemonis laid out the reasons for the retailer’s retreat from the Golden State, making it clear that the choice was based on economic realities rather than politics.

“We will not open or operate retail stores in California,” the statement began. “This decision isn’t about politics — it’s about reality. California has created one of the most overregulated, expensive, and risky environments for businesses in America.”

Lemonis criticized the state’s high taxes, rising labor costs, and complex regulatory structure, arguing that these factors have made it increasingly difficult for businesses to survive, let alone thrive.

“It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers,” he continued. “The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.”

According to Lemonis, even when California touts a budget surplus, it comes at a steep price — funded by overtaxed citizens and businesses struggling to stay afloat.

In place of physical locations, Bed Bath & Beyond will focus on enhancing its delivery operations in the state. Lemonis said the company will invest in a logistics model aimed at rapid fulfillment, including same-day or 24–48-hour delivery in most areas.

“Californians will continue to get the products they love through BedBathandBeyond.com — but without the inflated costs created by an unsustainable model,” he explained.

Lemonis framed the move as part of a broader commitment to business sustainability, responsible employment, and customer value — all of which, he argued, are undermined by California’s current policies.

“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,” he concluded.

The statement has sparked political ripples beyond the retail world. California Governor Gavin Newsom, who is rumored to be positioning himself for a 2028 presidential run, now faces renewed scrutiny over the state’s business climate. Critics argue that Lemonis’ decision sends a message to investors and corporations considering expansion in California.

Meanwhile, tensions between the Newsom administration and federal immigration enforcement continue to escalate. Just days after Lemonis’ announcement, U.S. Border Patrol agents made headlines by appearing outside an anti-Trump rally hosted by Newsom in Los Angeles.

The event, dubbed “Liberation Day,” was intended to showcase Newsom’s opposition to the GOP’s redistricting efforts in Texas and to highlight his resistance to Trump-era immigration policies. In a post on social media before the rally, Newsom declared that “Donald Trump and Greg Abbott are going to have a very bad day today.”

However, the rally took an unexpected turn when more than a dozen armed and masked federal agents were seen stationed nearby. Footage captured by Fox 11 and later aired on Fox News showed Border Patrol officers detaining at least one individual, drawing criticism from event attendees.

Border Patrol Chief Gregory Bovino addressed the incident, stating,

“We’re here making Los Angeles a safer place. Since we won’t have politicians who will do that, we do that ourselves. So, that’s why we’re here today.”

When asked if he had a message for Governor Newsom, Bovino added pointedly:

“We’re going to continue to make Los Angeles safer, and they can take that one to the bank and cash it.”

Newsom’s office responded forcefully in an email to Fox News Digital, writing in all caps:

“WE WILL NOT BE INTIMIDATED BY WEAK LITTLE DONALD TRUMP, THE CRIMINAL PRESIDENT!”

The escalating conflict reflects broader national divisions over state sovereignty, immigration enforcement, and federal authority. While Newsom pushes progressive policies on immigration and governance, critics say the state’s approach is increasingly isolating businesses and straining federal relationships.

With Bed Bath & Beyond’s announcement, the message from the private sector is becoming clearer — California’s economic policies may be pushing some major companies to look elsewhere for growth and stability.

As the state continues to battle high living costs, a shrinking tax base, and mounting political challenges, Lemonis’ decision could be a bellwether for how other large retailers and corporations respond to California’s evolving economic landscape.