California, August 28, 2025
News Summary
Bed Bath & Beyond has announced it will not reopen any of its stores in California following its bankruptcy filing in April 2023. The retailer plans to focus on online sales and a unique California strategy, including same-day delivery options. Executive Chairman Marcus Lemonis cited California’s overregulated and expensive business climate as the reason for the decision. The retailer aims to adapt to the shifting landscape of retail in the state while emphasizing its commitment to providing services to customers through online platforms.
California — Bed Bath & Beyond has announced it will not reopen any of its stores in California following its bankruptcy filing in April 2023. The home goods retailer, which closed 360 locations before its restructuring under new ownership, will instead focus its efforts on online sales and a unique California strategy, including same-day delivery options for customers in the state.
The decision stems from executive chairman Marcus Lemonis’s assessment of California’s business climate, which he described as “overregulated, expensive, and risky.” Lemonis pointed to various challenges that make operating in the state difficult, including higher taxes, increased operational fees, elevated minimum wages, and stringent regulations. These factors contribute to a maturing sentiment among businesses considering their operational landscapes.
After emerging from bankruptcy, Bed Bath & Beyond has rebranded itself under the ownership of Overstock, which acquired the company’s intellectual property as part of a larger effort to revitalize the brand. As part of this revitalization, a new store is set to open in Nashville, Tennessee, which will serve as a test site for future locations across the nation.
While there will be no physical stores in California, Lemonis reassured customers that they would still be able to access Bed Bath & Beyond products online. The planned online strategy includes options for same-day delivery and expedited shipping, effectively enabling customers in California to benefit from the brand without the need for physical locations.
The announcement further aligns with a trend of businesses leaving California due to escalating operational costs. Research indicates that over 350 firms relocated out of the state between 2018 and 2021, seeking environments that offer less regulation and lower costs. Retail theft has also emerged as a significant concern for many California businesses, with executives citing safety as an operational issue. In efforts to combat the growing retail theft problem, California voters passed Proposition 36 in November 2024, which designates repeat shoplifting offenses as felonies.
Governor Gavin Newsom has responded skeptically to the claims made by Lemonis, questioning whether Bed Bath & Beyond will maintain its relevance following its bankruptcy. Meanwhile, the frustrations expressed by Bed Bath & Beyond are echoed by other retailers in the state, including In-N-Out, whose CEO has also cited difficulties in navigating the California business environment.
As Bed Bath & Beyond navigates its post-bankruptcy landscape, the evolving perceptions and challenges of operating in California remain under scrutiny. The state continues to strive to maintain its appeal to businesses amidst ongoing debates regarding regulations and operational costs.
Key Takeaways
- Bed Bath & Beyond will not reopen stores in California post-bankruptcy.
- The focus will shift to online shopping and same-day delivery services.
- Challenges like high taxes and regulations prompted the decision to avoid California.
- Over 350 firms have relocated from California between 2018 and 2021.
- Retail theft issues exacerbate concerns for companies operating in California.
FAQ
Why is Bed Bath & Beyond not reopening stores in California?
Bed Bath & Beyond has decided against reopening in California due to the state’s overregulated and costly business environment that includes high taxes, increased fees, and strict regulations.
What is the new strategy for Bed Bath & Beyond in California?
The new strategy involves focusing on online shopping with an emphasis on same-day delivery and fast shipping options to ensure California customers can still access products without physical stores.
What was the impact of recent legislation on retail theft in California?
In November 2024, California voters passed Proposition 36, which makes repeated shoplifting offenses felonies. This legislation is aimed at addressing the growing concern of retail theft in the state.
Key Features Summary
| Feature | Details |
|---|---|
| Bankruptcy Filing | April 2023 |
| Store Closures | 360 stores closed before June 2023 |
| New Ownership | Acquired by Overstock and rebranded as The Brand House Collective |
| California Strategy | Focus on online shopping with same-day delivery |
| Challenges in California | High taxes, fees, wages, and regulations |
| Retail Theft Legislation | Proposition 36 passed in November 2024 |
Deeper Dive: News & Info About This Topic
- TheStreet: Home Goods Retailer Sets Closing Sale for 31 Stores in Bankruptcy
- Wikipedia: Bankruptcy
- Los Angeles Times: Bed Bath & Beyond Won’t Reopen Stores in Overregulated California
- Google Search: Bed Bath & Beyond California
- San Francisco Chronicle: Bed Bath & Beyond California Stores
- Google Scholar: California Business Regulations
- CBS News: Bed Bath & Beyond Stores in California
- Encyclopedia Britannica: California
- The Hill: Newsom on California Business Environment
- Google News: California Business Climate
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.
