Governor Newsom Responds to Bed Bath & Beyond’s Decision to Skip California: What It Means for Shoppers

LOS ANGELES – Bed Bath & Beyond has made a surprising choice. The company announced it won’t open any stores in California, the state with over 39 million residents. Instead, they will rely solely on delivery services there.

Marcus Lemonis, the company’s Executive Chairman, explained their reasoning. He emphasized the need for “common sense” in business. He believes that companies should be able to thrive, employees deserve stable jobs, and customers should access fair prices. Unfortunately, he argues, California’s current system falls short on these fronts.

After closing all its stores and filing for bankruptcy in 2023, Bed Bath & Beyond is attempting to rebuild. The first new location, Bed Bath & Beyond Home, opened near Nashville on August 8, 2023, marking a fresh start for the brand.

Interestingly, reactions to Lemonis’s decision have sparked conversations on social media. Many California residents were shocked to hear the brand was still trying to comeback, as many thought Bed Bath & Beyond had permanently vanished. Governor Gavin Newsom’s office acknowledged the company’s effort, wishing them the best as they strive to re-establish themselves.

In response, Lemonis highlighted plans to target 300 new neighborhood stores through a partnership with Kirklands, a popular home goods retailer. His remarks have resonated with those frustrated by California’s regulations that he feels stifle business growth.

Lemonis’s criticism of California’s regulatory environment isn’t new. He previously called attention to laws that he sees as burdensome, arguing they create a risky landscape for businesses. For instance, he criticized a law mandating high-revenue corporations to report their greenhouse gas emissions, labeling it a “crazy law.”

This situation isn’t just about corporate strategy; it reflects a broader trend in the business world. As recent statistics show, small businesses are increasingly feeling the squeeze from regulations. According to a 2023 survey from the National Small Business Association, over 70% of small business owners express concern about the impact of regulations on their operations.

While Lemonis insists the decision isn’t political, the spotlight on California’s business climate continues to grow, prompting debate over how regulations can balance environmental concerns and economic sustainability.

For a more in-depth look at ongoing business challenges in California, you can visit The California Chamber of Commerce.

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Marcus Lemonis, California, Gavin Newsom, filing for bankruptcy