CALIFORNIA REGULATIONS KEEP ANOTHER BUSINESS OUT OF THE STATE

National Review

 

California Regulations Keep Another Business Out of the State

By Kamden Mulder

August 20, 2025 10:51 AM

 

Bed Bath & Beyond announced that it will no longer open or operate stores in California, attributing the decision to overregulation and exorbitant overhead costs in the state.

 

“This decision isn’t about politics — it’s about reality. California has created one of the most over-regulated, expensive, and risky environments for businesses in America,” Marcus Lemonis, executive chairman of Bed Bath & Beyond, said in a statement. “It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”

 

California Governor Gavin Newsom’s press office issued a statement in response to Bed Bath & Beyond’s decision.

 

“After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed,” the governor’s press office said in a post on X. “We wish them well in their efforts to become relevant again as they try to open a 2nd store.”

 

Bed Bath & Beyond is not the first business to leave the state — it represents a larger trend. Other large corporations that have left California include Tesla, Chevron, and Charles Schwab.

 

“While our relocation has very real benefits to our business, we also believe California policymakers have pursued policies that raise costs and consumer prices, creating a hardship for all Californians, especially those who can least afford it,” Ross Allen, a spokesperson for Chevron, told Business Insider upon the company’s decision to relocate to Houston, Texas, in 2024.

 

Lemonis relayed similar sentiments in his statement Wednesday.

 

“The result? Higher taxes, higher fees, higher wages that many businesses cannot sustain, and endless regulations that strain growth,” Lemonis said. “Even when the state announces a budget surplus, it’s built on the backs of ordinary citizens who are paying too much and businesses who are squeezed until they break.”

 

Bed Bath & Beyond filed for bankruptcy in April 2023, and in July 2023, the company shut down all of its storefronts. Bed Bath & Beyond was purchased by Overstock.com and initially began selling inventory exclusively online. Two years after liquidating all stores, a new storefront opened in Nashville this month under the new name, Bed Bath & Beyond Home. According to Lemonis, however, the new stores will not include locations in California.

 

For Californians that still wish to shop at Bed Bath & Beyond, Lemonis suggests ordering online and taking advantage of the company’s 24 to 48 hour delivery services. Patrons will have access to the products online, but will avoid the “inflated costs created by an unstable model.”

 

“California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our customers in that position,” Lemonis said in a post on X.

 

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