Bed Bath & Beyond is back from bankruptcy, but not in California. After shuttering 360 stores in 2023 and relaunching under new ownership, the home goods retailer is testing fresh growth with a new Nashville location.
Yet executive chairman Marcus Lemonis says California is off the table, blasting the state’s “overregulated, expensive, and risky” business climate. With higher taxes, rising theft, and growing competition, the Golden State is now a no-go zone for the once-iconic chain.
From Bankruptcy to Bold Comeback
Two years after vanishing from malls, Bed Bath & Beyond plans a return in 2025 under new ownership.
Industry experts note the retailer’s effort to revive itself as part of a wider trend of retail resurrections post-bankruptcy.
The 2023 Retail Collapse Story
Mounting debt and unsuccessful turnarounds pushed the company into Chapter 11, forcing a complete liquidation by July 30, 2023.
Thousands of employees nationwide lost jobs as the iconic brand ceased operations, signaling a major retail meltdown.
New Owners, New Strategy
Overstock.com acquired Bed Bath & Beyond’s assets and rebranded as Beyond Inc. in August 2023.
The first new “Bed Bath & Beyond Home” store opened quietly in Nashville on August 8, 2025, as part of an expansion plan targeting 75 former Kirkland’s locations.
Surprise Announcement Shakes Industry
On August 20, Executive Chairman Marcus Lemonis declared the company will never reopen physical stores in California.
He labeled California “one of the most overregulated, expensive, and risky environments for businesses in America,” emphasizing the decision was based on business realities, not politics.
39 Million Californians Lose Physical Access
Over 39 million Californians will be unable to shop at Bed Bath & Beyond stores in person.
Former Bay Area locations and others remain vacant, with storefronts now listed “for lease,” leaving retail hubs ghostly silent.
Lemonis Critiques California’s Business Climate
Lemonis blamed high taxes, wages, and “endless regulations that strangle growth” for the company’s exit.
He argued these conditions make it “harder to employ people” and run cost-effective operations, rejecting what he calls an “unsustainable model.”
California Joins Corporate Exodus Wave
Bed Bath & Beyond’s California exit follows more than 350 corporate headquarters that fled the state from 2018 to 2021.
Companies like Tesla and Oracle similarly cited the state’s regulatory and cost burdens as reasons for relocation.
Governor Newsom’s Sharp Rebuttal
Governor Gavin Newsom’s office tweeted, “Like most Americans, we thought Bed Bath & Beyond no longer existed. We wish them well as they try to open a 2nd store.”
This public jab highlights the ongoing friction between state leaders and departing businesses over California’s business environment.
Heated Social Media Exchanges
Lemonis responded to Newsom by acknowledging the governor’s intelligence while noting his frustration, escalating a tense back-and-forth on Twitter. “You are a smart man, and I know the post below is out of frustration, ” Lemonis said.
This dialogue underscores deep divides over California’s regulatory policies between political and business leaders.
Meanwhile, Bed Bath & Beyond leverages its Kirklands brand to advance expansion.
Growing Through Kirklands
The company plans to convert existing stores under the Kirklands brand to accelerate growth in favorable states. This tactic sidesteps California’s tough environment while expanding market reach.
It offers an adaptive, cost-effective path forward. Despite losses, California’s economy remains resilient.
Testing Delivery-Only Sales
In California, Bed Bath & Beyond pursues a e-commerce-only strategy, avoiding physical stores entirely. This delivery-only model tests how to maintain presence without costly overhead.
Retailers observe this approach for lessons on navigating tough regulatory climates. The company’s broader political messaging adds context.
Climate Laws Raise the Bar
A key factor in Bed Bath & Beyond’s decision is California’s new climate disclosure laws. SB 253 and SB 261 require large companies to report greenhouse gas emissions and climate risks, with initial reports due in 2026. Compliance costs can exceed $1 million per company, adding to the regulatory burden.
California’s Economic Resilience
Despite corporate pullbacks, California maintains strong sectors like technology and entertainment that keep its economy robust. Diverse industries continue drawing innovation and new ventures.
The state’s economic base can withstand these retail losses. Meanwhile, consumers continue adapting to the changing retail landscape.
Can Retail Survive Without California?
The question arises: can Bed Bath & Beyond succeed nationally while completely avoiding California’s $3.6 trillion economy?
Observers watch closely to see if this new geography-based strategy will pay off or limit growth.
Legal Precedent in the Making
If successful, Bed Bath & Beyond may inspire other retailers to avoid highly regulated states, reshaping expansion plans nationwide.
Retail law experts warn this could create a state-by-state market selection based more on regulatory climate than market size.
Human Toll: Workers and Shoppers
The shutdown displaced countless employees and disrupted communities that relied on Bed Bath & Beyond for jobs and convenience. “Businesses should be given the opportunity to thrive. Workers should have stable employment,” Lemonis stated. California shoppers now face fewer in-person options for home goods.
Competing for Corporate Investment
States welcoming new Bed Bath & Beyond stores gain increased retail investment and employment. Their business-friendly policies attract companies fleeing stricter jurisdictions.
This interstate competition shapes regional economic fortunes. National retailers are watching closely for strategies to manage regulatory challenges.
Industry Watching Closely
Retailers nationwide monitor Bed Bath & Beyond’s choice to exclude California physical stores as a potential model. This approach offers insights into balancing operational costs with market presence.
Other companies weigh if such geographic restrictions could enhance efficiency. Financial analysts now debate the strategy’s long-term viability.
A New Era in Retail Geography
Bed Bath & Beyond’s California withdrawal marks a turning point where business location decisions emphasize regulation over pure market size. This may set a precedent influencing future corporate strategies.
This transformation underscores complex corporate-government dynamics redefining expansion. The ripple effects continue to unfold across industries and states.