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Bed Bath & Beyond Exits California Amid Bankruptcy Challenges

Exterior of a closed Bed Bath & Beyond store in California with a 'Closed' sign.

California, August 28, 2025

News Summary

Following its Chapter 11 bankruptcy filing, Bed Bath & Beyond has closed all physical locations in California. The company’s new ownership has cited high operational costs and stringent regulations as primary reasons for this decision. As the brand transitions under Overstock’s rebranding as The Brand House Collective, residents will retain access to products online. The state government is exploring ways to enhance the business climate, amidst rising concerns over retail theft and operational challenges.

California residents will not have physical locations of Bed Bath & Beyond following the company’s bankruptcy filing earlier this year. The retail chain, which filed for Chapter 11 bankruptcy in April 2023, has permanently closed its doors in the state due to a combination of factors including high operational costs and strict regulations. This decision is part of the broader operational strategy laid out by the new ownership following a significant restructuring.

Bed Bath & Beyond, which closed 360 stores before its relaunch in June 2023, has been rebranded by Overstock as The Brand House Collective. Plans for future locations include a new store in Nashville, Tennessee, which will serve as a testing ground for the retailer’s new operational strategy. However, the executive leadership has confirmed that none of these locations will be situated in California.

The executive chairman of Bed Bath & Beyond has emphasized California’s overregulated, expensive, and risky business environment as the primary reason for not reopening stores in the state. Key issues mentioned included California’s higher taxes, increased fee structures, elevated wage requirements, and stringent regulations that executives believe hinder successful retail operations. These challenges contribute to a trend where firms express concerns over the state’s business climate, leading many to reconsider their presence in California.

Despite the absence of brick-and-mortar stores, residents of California will still have access to Bed Bath & Beyond products through online shopping. The company plans to implement a dedicated California strategy, which will include offerings like same-day delivery and expedited shipping aimed at maintaining customer service standards.

In response to the retail situation in California, Governor Gavin Newsom has expressed skepticism towards the reasons provided by Bed Bath & Beyond, implying that the relevance of the company should be reassessed following its bankruptcy. His administration continues to explore ways to enhance the state’s business appeal amid ongoing concerns from various sectors.

The decision to exit California reflects a growing trend, as over 350 companies relocated from the state between 2018 and 2021, seeking more favorable business conditions elsewhere. Bed Bath & Beyond’s situation aligns with this movement as it joins a list of businesses that have voiced frustration with California’s business regulations. Notably, executives from other firms like In-N-Out have also aired similar grievances regarding the operational challenges faced in the state.

Another pressing concern impacting retail operations is the significant rise in retail theft across California. This increase has raised safety and operational viability issues for many executives, including those at Bed Bath & Beyond. In November 2024, California voters took a step to combat retail theft by approving Proposition 36, which made repeat shoplifting offenses felonies. This measure reflects a broader strategy by the state to address growing concerns over retail security and to improve the environment for businesses.

As California navigates these challenges, the ongoing conversation around its business landscape highlights the delicate balance the state must maintain to attract and retain companies while ensuring a viable economy.

FAQs

Why won’t Bed Bath & Beyond reopen stores in California?

Bed Bath & Beyond will not reopen stores in California due to high operational costs and a challenging regulatory environment, which includes higher taxes, wages, and strict regulations.

What will happen to customers in California wanting to shop at Bed Bath & Beyond?

Customers in California can still shop online, with plans for same-day delivery and quick shipping options under a new strategy implemented by the company.

What recent legislative changes have been made to address retail theft in California?

In November 2024, California voters approved Proposition 36, making repeat shoplifting offenses felonies to combat the rise in retail theft.

Key Features Chart

Feature Details
Bankruptcy Filing April 2023
Closed Stores 360 locations
New Ownership Rebranded as The Brand House Collective by Overstock
New Location Nashville, Tennessee
California Strategy Online shopping with same-day delivery available
Concerns for Business High costs, regulations, and rise in retail theft
Proposition 36 Approved in November 2024 to tackle retail theft

Deeper Dive: News & Info About This Topic

Bed Bath & Beyond Exits California Amid Bankruptcy Challenges

STAFF HERE CORONADO
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.

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