“Too Expensive And Risky”: Bed Bath & Beyond Explains Why It Won’t Operate Stores In “Overregulated” California

Authored by Jill McLaughlin via The Epoch Times,

The chairman of the resurrected home goods chain Bed Bath & Beyond announced on Aug. 20 that the company would not open or operate retail stores in California, calling it overregulated, expensive, and risky.

“This decision isn’t about politics—it’s about reality,” company head Marcus Lemonis said in a social media post.

“California has created one of the most overregulated, expensive, and risky environments for businesses in America. It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”

Lemonis—the executive chairman of Beyond, Inc., which owns Bed Bath & Beyond—claimed that the state’s regulations result in higher taxes, fees, and wages that many businesses can’t sustain. The regulations strangle growth, he said.

California Gov. Gavin Newsom’s office did not express concern about the retailer’s announcement in a response following the company’s announcement.

“After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed,” Newsom’s spokesperson, Tara Gallegos, told The Epoch Times in an email.

“We wish them well in their efforts to become relevant again as they try to open a 2nd [sic] store.”

Bed Bath & Beyond, founded in 1971, expanded to become a U.S. retail icon of home goods, experiencing significant growth.

In 2023, the company filed for bankruptcy, closing hundreds of stores after years of dismal sales and several attempts to turn the struggling business around. The company was purchased by online retailer Overstock.com and transitioned to an online-only presence.

Bed Bath & Beyond closed all 41 of its California stores, along with all other U.S. locations, in July 2023.

The retailer’s parent company, The Brand House Collective, announced a grand opening of its first Bed Bath & Beyond Home store in Nashville set for Aug. 8. The company’s shareholders approved the move in July.

“We’re proud to reintroduce one of retail’s most iconic names with the launch of Bed Bath & Beyond Home, beautifully reimagined for how families gather at home today,” Amy Sullivan, CEO of The Brand House Collective, said in a statement on July 28.

“This isn’t just a store, it’s a fresh start for a brand that means something special to so many families.”

The store also brought back its popular Beth Bath & Beyond coupons as it celebrated the grand opening.

Bed Bath & Beyond is investing in an alternative California strategy, according to Lemonis.

The company will offer 24 hour to 48 hour delivery to customers, and in many cases will deliver on the same day of purchase.

A Bed Bath & Beyond store in Los Angeles on April 10, 2013. The company closed its 41 California outlets in 2023. Kevork Djansezian/Getty Images

Californians can continue to get products directly through the company’s website “on our terms, and with their best interest at heart,” but without the extra costs imposed by California’s taxes and regulations, according to Lemonis.

“We’re taking a stand because it’s time for common sense,” he said.

“Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices. California’s system delivers the opposite.”