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Bed Bath & Beyond is attempting to open new brick-and-mortar stores after filing for bankruptcy in 2023 and shuttering all of its locations — except for in one state.
In a statement released on Wednesday, Aug. 20, the Executive Chairman of Bed Bath & Beyond, Marcus Lemonis, confirmed that the home goods retailer “will not open or operate retail stores in California.”
“This decision isn’t about politics — it’s about reality,” said Lemonis. He claims “California has created one of the most overregulated, expensive, and risky environments for businesses in America,” alleging it makes it “harder to employ people” and “keep doors open.”
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He blames “higher taxes, higher fees, [and] higher wages” for leading to instability and the inability to scale. “At Bed Bath & Beyond, our responsibility is to our customers and our shareholders. We will not participate in a system that undermines both,” said Lemonis.
Instead of brick-and-mortar locations in California, the company plans to focus on 24 to 48-hour delivery and same-day service in the state.
California Governor Gavin Newsom’s official press office account took to X (formerly Twitter) to respond to the exclusion.
“After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed,” read the post. “We wish them well in their efforts to become relevant again as they try to open a 2nd store.”
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Newsom also responded to the news from his personal X account, writing, “The company that already went bankrupt and closed every store across the country two years ago? Ok.”
Lemonis replied to Newsom’s quip with a plan he claims includes pro-business reforms in California. “You are a smart man and I know the post below is out of frustration,” he concluded in part.
Newsom has not yet responded to the latest from Lemonis.
Bed Bath & Beyond opened its first new location in Nashville on Aug. 8, in partnership with The Brand House Collective, renaming it Bed Bath & Beyond Home.
In a press release about the opening, Amy Sullivan, CEO of The Brand House Collective, said, “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.”
After filing for Chapter 11 protection in April 2023, Bed Bath & Beyond’s name, intellectual property and digital assets were acquired by Overstock.com for $21.5 million.
Overstock relaunched its website as BedBathandBeyond.com, offering an assortment of the name-branded products, such as bedding, home furnishings and kitchen items under the website’s merchandising categories.
Overstock CEO Jonathan Johnson said in a press release at the time, “Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.”
Bed Bath and Beyond’s decline seemingly began in 2020, when the company closed 40 locations. Then, in 2022, it announced its plans to close 150 “lower-producing” stores nationwide and reduce its labor force by 20%.
Although the company released a statement noting that it received over $500 million in new financing, the company’s same-store sales were reportedly down by approximately 26%.
The retailer also adjusted to a “direct-to-consumer” merchandising strategy with the goal of launching additional in-house brands. After the change was announced, the company’s stock dropped 26% in premarket trading.
In early 2023, before filing for bankruptcy protection, the chain closed an additional 87 stores across 30 states.
