Bed Bath & Beyond Opts Out of California Expansion, Citing Regulatory Burden

August 21, 2025 – Bed Bath & Beyond is back after Chapter 11 bankruptcy. Today, the retailer said it won’t open any stores in California. Instead, it will serve the state’s 39 million residents only online, with quick delivery options.

Executive Chairman Marcus Lemonis stated that the company made its decision due to California’s “overregulated, expensive, and risky environment.” He pointed out high taxes, fees, and wage mandates that, in his view, “strangle growth” and hurt profitability. Lemonis stressed that this decision was about business, not politics. “We owe it to our customers and shareholders. We won’t support a system that harms both.”

To keep Californians connected to its products, Bed Bath & Beyond will boost its e-commerce. They plan to offer 24- to 48-hour shipping and same-day delivery in some metro areas. Their range includes bedding, bath essentials, kitchenware, and small appliances.

California Governor Gavin Newsom reacted sharply to the announcement. His office noted that after Bed Bath & Beyond’s bankruptcy and store closures in 2023, “most Americans thought the chain no longer existed.” We wish them well in their efforts to become relevant again.” Newsom’s spokesperson said that California’s economy is the fourth largest in the world. It also remains a welcoming place for businesses, despite Lemonis’s criticisms.

Bed Bath & Beyond, now owned by Beyond Inc. and partnering with Kirkland’s, opened its first new neighborhood store in Nashville earlier this month. California won’t be part of the planned expansion for up to 300 small-format locations. This shows the company’s position on state regulations and cost issues.