Bed Bath & Beyond CEO Blasts California Regulations, Says No Retail Expansion Planned

Marcus Lemonis, the CEO of Bed Bath & Beyond, issued a strongly worded statement criticizing the state of California for what he described as a burdensome and unsustainable business climate. Citing the state’s regulatory environment and high operational costs, Lemonis announced the company will not be opening any physical retail stores in California.

“This isn’t about politics — this is about practical realities,” Lemonis stated. “California has become one of the most difficult states in the nation for businesses to operate. Between excessive regulations, high taxes, and soaring labor costs, it’s no longer a viable option for us to expand brick-and-mortar operations there.”

According to Lemonis, the decision was made after careful evaluation of the economic climate in the state. He pointed to what he described as “crippling” operational hurdles that make it difficult for companies to sustain growth, create jobs, and offer fair pricing to customers.

“We’re facing layers of red tape, inflated costs, and policies that make hiring and retaining staff more difficult,” he continued. “Even when California boasts a surplus, it’s typically funded through higher taxes on working citizens and businesses already stretched thin.”

Rather than opening physical locations in California, Bed Bath & Beyond will focus on expanding its online services within the state. The retailer is investing heavily in faster delivery options, including 24- to 48-hour shipping and even same-day delivery in some areas.

“Californians will still be able to get the products they love, just without the extra cost burden that comes from operating physical stores in such a costly state,” Lemonis explained. “Our digital-first strategy ensures convenience and affordability, on terms that make sense for our customers and stakeholders.”

He added, “We owe it to our customers to provide value, and to our shareholders to act with financial discipline. Participating in a system that undermines both is not an option.”

Lemonis framed the move as part of a broader commitment to efficiency and sustainability, emphasizing that companies need a stable environment to thrive. He also called for what he termed “common-sense reform” in states like California, where business policies often conflict with long-term growth strategies.

“Businesses deserve the freedom to succeed. Workers deserve jobs they can count on. Customers deserve fair prices. Unfortunately, California’s current approach delivers the opposite,” he said in closing.

The announcement comes as California Governor Gavin Newsom faces increasing scrutiny on multiple fronts. Widely seen as a possible contender for the 2028 Democratic presidential nomination, Newsom has made headlines recently for his outspoken opposition to Republican-led policies, particularly on immigration and redistricting.

Just last week, tensions flared at an anti-Trump rally hosted by Newsom in Los Angeles, dubbed “Liberation Day,” where he unveiled his response to redistricting efforts in GOP-controlled states like Texas. The event took a dramatic turn when U.S. Border Patrol agents appeared at the scene, leading to at least one arrest.

Footage aired by Fox 11 Los Angeles showed heavily armed agents, some masked, stationed outside the rally. The video captured the arrest of a man who was handcuffed and escorted away as demonstrators shouted in protest.

Speaking to reporters, Border Patrol Chief Gregory Bovino said the agency’s presence was meant to ensure safety. “We’re here to make Los Angeles a safer place,” Bovino stated. “Since we lack politicians willing to step up, we’re stepping in to fill that gap. We’re not going anywhere.”

When asked directly if he had a message for Governor Newsom, Bovino replied, “We’re committed to keeping this city safe — take that message to the bank and cash it.”

The Governor’s office responded in a defiant tone. In a sharply worded email to Fox News Digital, the office declared: “WE WILL NOT BE INTIMIDATED BY WEAK LITTLE DONALD TRUMP, THE CRIMINAL PRESIDENT!”

The confrontation highlights the increasing tensions between state and federal authorities over immigration enforcement and sanctuary policies in California. It also adds a political layer to Lemonis’ business announcement, which, although framed as nonpartisan, has already sparked reactions across party lines.

As Bed Bath & Beyond pivots to a California strategy focused solely on e-commerce, Lemonis’ comments may fuel ongoing debates about the state’s business climate, regulatory practices, and political leadership.