Bed Bath & Beyond says it won’t open stores in California: ‘Overregulated, expensive and risky’

Bed Bath & Beyond announced on Wednesday that it will not be opening stores or operating in California due to the state’s stringent policies, which the company criticized harshly.

Marcus Lemonis, the executive chairman of Bed Bath & Beyond, stated that the decision was based on “reality” rather than politics.

“California has created an environment that is overregulated, expensive, and risky for businesses in America,” Lemonis said in a press release.

He pointed out that the state’s high taxes, fees, wages, and regulations make it challenging for businesses to thrive and grow.

Despite emerging from bankruptcy and closing numerous stores two years ago, the struggling chain is now focusing on e-commerce and delivery services in California.

Lemonis emphasized the company’s commitment to shareholders and implementing “common sense” business practices.

He argued that California’s strict regulations, such as the minimum wage hike, would lead to higher prices in physical stores and hinder long-term employment prospects.

In response, a spokesperson for California Governor Gavin Newsom expressed surprise at Bed Bath & Beyond’s decision and wished them success in their endeavors.

Bed Bath & Beyond, now owned by Beyond Inc., recently opened its first new location in Nashville and invested in Kirkland’s Inc.

The company plans to open smaller-format stores in partnership with Kirkland’s, focusing on efficiency and cost-effectiveness.

If successful, the pilot program could lead to a wider rollout of physical stores for Bed Bath & Beyond.

Kirkland’s, a home decor chain, operates over 300 stores across more than 30 states.