Bed Bath & Beyond, once a household name in American retail, is attempting a high-profile comeback after its 2023 bankruptcy. However, the company’s latest move has stirred controversy as Executive Chairman Marcus Lemonis announced that Bed Bath & Beyond will not be opening physical stores in California — the most populous state in the country.
The decision has sparked debate, with California Governor Gavin Newsom’s office responding sharply to the announcement. The standoff underscores the ongoing tension between state regulations and corporate strategy in one of the world’s largest consumer markets.
Marcus Lemonis on Why California Is Off the Map
In a statement released on August 20, Marcus Lemonis made it clear that California’s regulatory environment is a major factor in Bed Bath & Beyond’s decision. According to Lemonis, businesses need the freedom to thrive without being burdened by what he calls “one of the most overregulated, expensive, and risky environments for businesses in America.”
Instead of launching brick-and-mortar locations in California, Bed Bath & Beyond will serve its more than 39 million residents through online delivery channels. Lemonis stressed that this move is about sustainability and protecting both customers and employees from unnecessary financial strain.
“Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices,” Lemonis stated. “California’s system delivers the opposite.”
Bed Bath & Beyond’s Path to Revival
The announcement follows Bed Bath & Beyond’s bankruptcy filing in April 2023, which led to the closure of all its stores nationwide. In a surprising turn, the retailer reemerged this August with the launch of its first Bed Bath & Beyond Home store near Nashville, Tennessee.
The company is now planning to open around 300 small-to-midsize neighborhood stores across the U.S., largely supported by its Kirkland’s investment. Still, Lemonis emphasized that California is not part of that expansion strategy due to what he describes as “unrealistic laws and business risks.”
Governor Newsom Responds
California Governor Gavin Newsom’s office was quick to push back on Bed Bath & Beyond’s statement. On social media, Newsom’s team dismissed the announcement, remarking:
“After their bankruptcy and closure of every store, like most Americans, we thought Bed Bath & Beyond no longer existed. We wish them well in their efforts to become relevant again as they try to open a 2nd store.”
The subtle jab reflects skepticism about the retailer’s ability to regain consumer trust after its collapse last year.
Marcus Lemonis’s Broader Track Record
This is not the first time Marcus Lemonis has clashed with California regulations. As CEO of Camping World, Lemonis previously sparred with San Joaquin County officials over an oversized flagpole installed without proper permits. The dispute drew national headlines, but Lemonis doubled down, insisting the company’s practices were a matter of principle rather than defiance.
His outspoken approach has become a hallmark of his leadership style — one that appeals to some investors but creates friction with local governments. By keeping Bed Bath & Beyond out of California, Lemonis is once again taking a bold stance that highlights his philosophy on regulatory reform.
What This Means for Shoppers
For consumers in California, Bed Bath & Beyond’s absence may be disappointing, especially for longtime customers who relied on the retailer for home goods. However, Lemonis has reassured Californians that the company’s e-commerce operations remain open to them, offering delivery services to bridge the gap.
The strategy suggests a hybrid comeback model — a mix of select physical stores across friendlier states and a nationwide digital presence.
The Bigger Picture
The decision by Bed Bath & Beyond, led by Marcus Lemonis, could serve as a case study for other retailers evaluating expansion plans in heavily regulated markets. It highlights the delicate balance between state policy, corporate profitability, and consumer access.
While Lemonis maintains that this is not about politics, his repeated critiques of California’s laws indicate that regulatory pushback will continue to shape where and how the company rebuilds.
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