Marcus Lemonis, the CEO of Bed Bath & Beyond, delivered a sharply worded critique of California’s business climate, announcing that the company has no plans to expand retail operations into the state. His remarks, issued in a lengthy public statement, took direct aim at what he called a burdensome regulatory environment created under Democratic leadership.

“We will not open or operate retail stores in California,” Lemonis declared at the start of the statement. He stressed that his decision was driven not by ideology but by what he described as economic reality. According to him, California has evolved into “one of the most overregulated, expensive, and risky environments for businesses in America.” He argued that the layers of rules and mandates in the state make it increasingly difficult to employ workers, maintain profitable storefronts, or provide customers with competitive prices.

Lemonis blamed high taxes, rising wages, and a maze of regulatory requirements for creating conditions that many companies—particularly retailers with thin margins—cannot sustain. He contended that even when state leaders boast about a budget surplus, it comes at the cost of ordinary residents and employers who are “squeezed until they break.” California’s system, he said, leaves businesses struggling to adapt and families bearing financial strain.

The CEO emphasized that Bed Bath & Beyond has a responsibility to its customers and shareholders to operate efficiently and responsibly. For that reason, he said, the company is choosing to avoid what he views as an unsustainable model of physical retail in California. Instead, the retailer will focus on a more flexible strategy that leverages online fulfillment. Lemonis announced that the company will serve Californians primarily through its website, promising quick delivery windows—ranging from 24 to 48 hours and, in many areas, same-day service.

He noted that while Bed Bath & Beyond will not maintain brick-and-mortar stores in the Golden State, California customers will still have full access to the company’s assortment of home goods, delivered without the added overhead costs tied to operating retail storefronts under the state’s regulatory structure. This approach, he said, allows the company to offer competitive pricing and avoid passing increased operational expenses onto shoppers.

“We’re taking a stand because it’s time for common sense,” Lemonis said in the statement. “Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices. California’s system delivers the opposite.” His comments framed the decision as part of a broader debate about the future of commerce in states with growing regulatory frameworks.

Lemonis’ public position may also have political implications. His announcement arrives at a moment when California Governor Gavin Newsom is widely viewed as preparing for a potential run for the 2028 Democratic presidential nomination. Critics suggest that high-profile business retreats from the state could undercut Newsom’s claims about California’s economic strengths.

At the same time, political tensions between Newsom and the Trump administration continue to intensify, particularly regarding the state’s sanctuary policies and its handling of immigration enforcement. These tensions were on display recently during an anti-Trump rally organized by Newsom in Los Angeles. The event—branded as “Liberation Day”—was meant to highlight the governor’s strategy to counter Republican redistricting efforts in Texas.

Ahead of the rally, Newsom took to social media to predict that former President Donald Trump and Texas Governor Greg Abbott were “going to have a very bad day today.” But as the event unfolded, a noticeable federal presence drew public attention. Footage captured by local affiliate Fox 11 and later obtained by Fox News showed more than a dozen Border Patrol agents stationed outside the event, wearing tactical gear and masks.

Cameras recorded agents taking at least one man into custody as bystanders voiced their objections. Border Patrol Chief Gregory Bovino told Fox 11 that his officers were there “making Los Angeles a safer place.” He added that since local politicians were not taking sufficient action, federal authorities would continue stepping in. “We’re glad to be here, not going anywhere,” Bovino said. When asked if he had a message for Gov. Newsom, he reiterated that Border Patrol would continue its operations and that officials could, as he put it, “take that one to the bank and cash it.”

Newsom’s office responded forcefully to Fox News Digital, issuing an all-caps statement blasting Trump as a “weak little Donald Trump” and referring to him as a “criminal president,” while insisting that the administration would not be intimidated by the presence of federal immigration authorities at the event.