Bed Bath & Beyond CEO Rules Out Retail Stores in California, Cites Unworkable Conditions

Marcus Lemonis, Executive Chairman of Bed Bath & Beyond (now part of Beyond, Inc.), has announced that the company will not open or operate physical retail stores in California. In a sharply worded statement, Lemonis blamed the state’s high costs, regulatory burdens, and business climate for the decision, saying it would not be viable to run in-store operations there under current conditions.

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Why California Is Off the Table

Lemonis emphasized that this is not a political move, but a response to what he describes as harsh economic realities in the Golden State. He outlined a list of challenges:

• Overregulation: Rules and requirements that he says slow down operations, increase costs, and make running a store more complex.

• High taxes and fees: Increased financial burdens that impact profitability.

• Wage pressures: Mandatory wages and labor costs that “many businesses simply cannot sustain.”

• Regulatory risk: Numerous rules that must be complied with, which, according to Lemonis, “strangle growth.”

These factors, Lemonis claims, make it difficult to employ people, keep stores open, and provide value to customers.

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Alternative Strategy: Online Service

While the company will not open brick-and-mortar stores in California, it will continue to serve customers there—but exclusively via its online platform, BedBathandBeyond.com. Lemonis says the company is building out delivery services in California that aim for 24–48 hour delivery in many areas, and in some cases, same-day fulfillment.

That means Californians can still order products as usual, but Lemonis insists the costs associated with physical stores are too high to make them viable in that state at this time.

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Context: From Bankruptcy to Comeback

Bed Bath & Beyond filed for Chapter 11 bankruptcy in 2023, closing all its existing stores. The brand, including its name and digital assets, was acquired and restructured under Beyond, Inc. The revival of the brand has included reopening some physical stores, but crucially, the expansion strategy will not include California under the current business model.

The company is now focusing on rebranding and reopening stores in other states, particularly with smaller-format locations and a more curated product mix.

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Lemonis’s Message: Responsibility and Common Sense

Lemonis framed the decision as a duty to shareholders and customers: “We will not participate in a system that undermines both,” he wrote. He argued that in order to keep prices reasonable, employees paid fairly, and stores sustainable, there must be a business environment that allows companies to work without being overburdened by costs and red tape.

He called for what he described as “common sense” in governance—arguing that business-friendly policies make more sense than strict regulations and ever-increasing costs. He made clear that while serving customers remains a priority, doing so under current California conditions would require too large a price.

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Response from California

California’s leadership, including Governor Gavin Newsom, responded critically. Newsom’s office used social media to suggest that the announcement was out of touch, given the company’s bankruptcy history and questions about its relevance. Critics in state government implied that Lemonis’s remarks were part of political rhetoric rather than a balanced discussion of business policy.

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What This Means for Consumers and Businesses

For Californians, this means no new physical Bed Bath & Beyond stores will be available—at least under Lemonis’s current plan. They will have access to inventory online, with shipping or delivery solutions, but the in-person shopping experience in California is off the table for now.

For other retailers, this decision could serve as a warning: if operating conditions—wages, regulation, taxes—are too demanding, companies may pull back or avoid expansion. It underlines how state and local business policy can influence where companies choose to invest.

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Big Picture: Expansion with Restrictions

Beyond Inc., the parent company, plans hundreds of store openings over the next couple of years in markets where physical retail makes sense under their revised model. These stores will be smaller and more selective in location. But California will not be among them under the current regulatory climate, Lemonis has confirmed.

In short, Bed Bath & Beyond is staging its comeback carefully—choosing retail expansion selectively and relying strongly on e-commerce and delivery for certain markets. California, he says, just doesn’t make sense for physical stores at this time.