Bed Bath & Beyond Won’t Reopen California Stores Post-Bankruptcy

California, August 25, 2025

News Summary

Following its bankruptcy in 2023, Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced the company will not reopen any stores in California. Citing an overregulated and costly business environment, Lemonis explained that these factors hinder operations and profitability. Despite closing over 80 locations in the state, the company plans to open about 300 new stores elsewhere, like Nashville, and focus on online shopping for Californians. The governor’s office responded, indicating a belief that the company is no longer operational, amid ongoing debates about California’s business climate.

California – Bed Bath & Beyond’s executive chairman, Marcus Lemonis, has declared that the company will not reopen any stores in California following its bankruptcy in 2023. The decision comes after the company, once operating over 80 stores across the state, closed all locations due to failed turnaround efforts that had led to mounting debt.

Lemonis characterized California as having one of the most “overregulated, expensive, and risky environments for businesses” in the United States. He pointed out that these conditions complicate hiring, make it difficult to maintain physical stores, and ultimately hinder the company’s ability to provide value to its customers.

The comments have sparked reactions, including from Governor Gavin Newsom’s office, which suggested that they believed Bed Bath & Beyond was no longer operational and wished the company well in its future endeavors. This statement follows a trend where high-profile companies, such as In-N-Out and Tesla, have expressed similar frustrations with California’s business climate, leading some to relocate their headquarters to states perceived as more business-friendly like Texas.

Despite the negative perception among certain business leaders, economists argue that California remains a leading global technology hub with substantial advantages. Data from the Bureau of Labor Statistics indicates that since 2015, more companies have exited California than entered, reflecting a changing business landscape in the state.

In August 2023, Bed Bath & Beyond opened a new store in Nashville, Tennessee, and has plans to establish approximately 300 more stores over the next two years. This expansion comes after Overstock.com acquired Bed Bath & Beyond’s assets and rebranded its operations under the name Beyond, Inc. While the company will not open physical locations in California, it is still offering online shopping options to Californians.

Lemonis maintains that his company’s decision not to open stores in California is based on practical business considerations rather than political agendas. While his stance draws criticism from some California politicians, others, like San Jose Mayor Matt Mahan, are echoing a need for a more favorable business environment within the state.

Economic studies show that California imposes a corporate income tax, while Texas uses a gross receipts tax, making it challenging to directly compare the two states’ business environments. Furthermore, Bed Bath & Beyond’s name and intellectual property have been reacquired from Overstock, which plans to relaunch them in a manner that caters to the needs of modern consumers. Nevertheless, according to Lemonis, the costs and regulatory environment in California would continue to inhibit any plans for physical expansions.

As the retail landscape continues to evolve following the company’s bankruptcy, the future for Bed Bath & Beyond in California seems uncertain, with a focus shifting more towards digital strategies than physical store presence.

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Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.