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Bed Bath & Beyond Halts Expansion in California Amid Challenges

Display of home goods in a Bed Bath & Beyond store

California, August 24, 2025

News Summary

Bed Bath & Beyond has decided not to open new stores in California, citing a challenging business climate with high taxes and regulations. Following its bankruptcy filing in 2023, the company has focused on rebranding, launching a new store concept in Nashville. While expansion in California is on hold, the online shopping platform remains active, allowing Californians to purchase items with quick delivery options. This decision reflects a broader trend of businesses reassessing their operations in the state due to perceived obstacles.

California – Bed Bath & Beyond has opted against opening any new retail stores in California, citing a challenging business environment. Marcus Lemonis, the executive chairman, stated that California is one of the most “overregulated, expensive, and risky environments for businesses in America.” This decision comes in the wake of the company’s recent bankruptcy filing in 2023, which led to the closure of all of its more than 300 stores nationwide.

Lemonis detailed operational difficulties that include higher taxes, increased fees, and elevated wages. These factors, he claims, create an unsustainable operational environment for many businesses. He emphasized these challenges hinder the ability to employ staff effectively, maintain store operations, and provide customers with reliable value.

Despite this setback, Bed Bath & Beyond has made strides to re-establish itself. The company successfully rebranded and opened its first physical store, now called Bed Bath & Beyond Home, in Nashville. This marks the beginning of its new retail strategy, which includes plans for further store openings in a “curated, smaller format” across various locations. However, California is off the table for expansion until the business climate improves.

For Californians interested in Bed Bath & Beyond’s offerings, the online shopping platform remains active, enabling customers to purchase items via BedBathandBeyond.com. The brand promises efficient service, featuring 24-48 hour delivery for most products, along with same-day service on certain items.

The California governor’s office has addressed Lemonis’ criticisms, indicating that the state had believed the company was closing its doors for good following its bankruptcy announcement. The closure of Bed Bath & Beyond is reflective of a broader trend in California, where several companies are relocating due to perceived obstacles and challenging business conditions.

In recent years, California has garnered attention for its stringent regulatory framework and cost issues, prompting critiques from various business leaders and industries. As more companies contemplate their presence in the state, Bed Bath & Beyond’s decision contributes to a growing narrative about California’s business future.

California’s Business Environment

The decisions made by companies like Bed Bath & Beyond are indicators of broader economic trends in California. Many businesses express concerns about the cost of doing business in the state, including the tax burden and labor market difficulties. This has raised alarms about the potential for decreased investment and job opportunities as businesses evaluate their options in a complex regulatory landscape.

Future Plans for Bed Bath & Beyond

While Bed Bath & Beyond will not expand its physical retail footprint in California for now, its efforts to maintain an online presence may help bridge the gap for local consumers. The company aims to offer customer-centric solutions through e-commerce while awaiting better conditions to reevaluate its retail strategy within the state.

Conclusion

Bed Bath & Beyond’s recent announcements bring to light the ongoing challenges faced by retailers in California. As climate concerns and economic pressures continue to shape the market, the company’s focus on innovation and adaptation remains pivotal in overcoming this period of transition.

FAQ

  • Will Bed Bath & Beyond open any new stores in California? No, the company has announced that it will not open any new retail stores in California.
  • What are the reasons for this decision? The decision is based on operational challenges including higher taxes, fees, and wages, which are difficult for businesses to maintain.
  • What is the status of Bed Bath & Beyond after its bankruptcy? Following bankruptcy in 2023, Bed Bath & Beyond closed all of its stores but has since rebranded and opened a new store in Nashville.
  • Can Californians still shop at Bed Bath & Beyond? Yes, customers in California can shop online at BedBathandBeyond.com, with options for 24-48 hour delivery and same-day service for select products.
  • Is the decision politically motivated? The executive chairman has stated that the decision is not politically motivated but rather a response to operational realities in California.

Key Features of Bed Bath & Beyond’s Decision

Feature Details
California Store Openings No new stores will be opened in California due to operational challenges.
Business Environment Concerns California known for high taxes, fees, and regulations affecting businesses.
Online Shopping Availability Bed Bath & Beyond remains available for online shopping with delivery options.
Bankruptcy Background Bed Bath & Beyond filed for bankruptcy in 2023, leading to nationwide store closures.
New Store Format Plans to open small-format stores in other states, excluding California for now.

Deeper Dive: News & Info About This Topic

Bed Bath & Beyond Halts Expansion in California Amid 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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