Bed Bath & Beyond to Close All Stores in California

California, August 25, 2025

News Summary

Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced that the retailer will not reopen any stores in California after its Chapter 11 bankruptcy. Lemonis cited California’s high regulations and costs as significant barriers for operations. The company plans to focus on opening around 300 stores in business-friendly locations outside California. Governor Gavin Newsom’s office expressed surprise at the announcement, amidst ongoing discussions about California’s business climate. The company’s assets have been acquired by Overstock.com, which is rebranding it as Beyond, Inc., emphasizing online shopping.

California – Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced that the retailer will not reopen any stores in California following its Chapter 11 bankruptcy filing earlier this year. The company’s shuttering of all its locations nationwide marks a significant shift in its operational strategy, as it seeks to navigate a challenging business environment exacerbated by high regulations and costs in the state.

Lemonis described California as “one of the most overregulated, expensive, and risky environments for businesses” in the United States. He argued that these conditions hinder the company’s ability to hire employees and maintain operations, complicating efforts to deliver value to customers. Before filing for bankruptcy, Bed Bath & Beyond operated more than 80 stores throughout California.

In August 2023, the company made a notable comeback by opening a new store in Nashville, signaling a strategic pivot toward markets it considers more business-friendly. Over the next two years, Bed Bath & Beyond plans to open approximately 300 additional stores, focusing on growth in cities outside of California. Lemonis emphasized that the decision to bypass California for future locations is rooted in pragmatic business considerations rather than political motivations.

Governor Gavin Newsom’s office reacted to Lemonis’s comments by expressing surprise, suggesting that they believed Bed Bath & Beyond had ceased operations entirely. They extended their best wishes for the company’s future endeavors and efforts to regain relevance in the retail landscape.

This announcement comes amid ongoing discussions regarding California’s business climate, which has seen other high-profile companies, such as In-N-Out, Tesla, and Chevron, express dissatisfaction with the state’s regulatory environment. Several of these companies have relocated their headquarters to states like Texas, seeking less expensive and less regulated surroundings.

Despite the negative view held by some companies and executives, economists maintain that California continues to be a leading global tech hub with significant advantages. Data from the Bureau of Labor Statistics indicates a troubling trend, as more companies have left California than moved in since 2015. This raises questions about the long-term viability of business operations in the state as more firms consider their options in other locations.

In a further development, Overstock.com acquired Bed Bath & Beyond’s assets and is rebranding the company as Beyond, Inc. This new business model prioritizes online shopping, and while there will be no physical stores in California, Californians can still access Beyond’s offerings via the internet. Lemonis has faced criticism from California politicians, whereas some local leaders, like San Jose Mayor Matt Mahan, advocate for creating a more business-friendly environment in the state.

Economic analyses have revealed complexities in comparing the business environments of California and other states, such as Texas. While California levies a corporate income tax, Texas employs a gross receipts tax, complicating direct comparisons. Nonetheless, Lemonis has noted that the prohibitive costs and regulatory pressures in California are significant barriers to expanding physical store locations there.

After acquiring the name and intellectual property of Bed Bath & Beyond from Overstock, the company is planning to relaunch its brand to cater to evolving consumer demands. The firm aims to adapt its operations to better align with modern shopping trends while continuing to focus on its online presence.

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Author: Anaheim Staff Writer

Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.