Bed Bath & Beyond has announced that it will cease operations in California, attributing the decision to the state's perceived overregulation and challenging business environment. Marcus Lemonis, the company’s executive chairman, expressed that California's regulatory framework hampers business success, leading to difficulties in hiring, maintaining operations, and delivering customer value. He highlighted the burdens of high taxes, fees, and wages as factors that make it unsustainable for many businesses to operate effectively in the state.
Despite withdrawing from physical retail locations in California, Bed Bath & Beyond will continue to market its products to customers in the state through online ordering. Lemonis stated that this approach aims to mitigate the inflated costs associated with California's business model. He emphasized the importance of providing a viable environment for businesses to thrive while ensuring job security for employees and fair pricing for customers.
In response, California Governor Gavin Newsom's press office remarked on the company's previous bankruptcy and noted that many believed Bed Bath & Beyond had exited the market entirely. The statement wished the company well in its efforts to regain relevance and hinted at skepticism regarding its future operations.
Bed Bath & Beyond previously filed for Chapter 11 bankruptcy in April 2023, which led to the liquidation of its assets and the closure of its stores. Following its bankruptcy, the company merged with Kirkland’s Home and is now in the process of rebranding itself. Lemonis indicated plans to open 300 new smaller format “neighborhood” locations across the United States, with the first store already launched in Nashville.