The Chairman of the revitalized household goods chain store Bed Bath & Beyond announced on August 20 that the company will not be opening or operating retail stores in California, citing the state’s “excessive regulation, high costs, and significant risks”.
Marcus Lemonis took to social media to state that his decision was not politically motivated but a matter of practicality. “California has created one of the most overly regulated, costly, and risky business environments in America. This makes it increasingly challenging for businesses to hire, run brick-and-mortar stores, and create value for customers,” he said.
Lemonis, the Chairman of Beyond Inc. (owner of the Bed Bath & Beyond brand), criticized California’s regulations for imposing higher taxes, fees, and wages on businesses, making it difficult for many companies to cope; these regulations are stifling growth.
In response, Governor Gavin Newsom’s office showed no concern. Newsom’s spokesperson, Tara Gallegos, told Epoch Times via email, “After they declared bankruptcy and closed all their stores, like most Americans, we thought Bed Bath & Beyond no longer existed. We wish them well in their attempt to open a second store and garner attention once more.”
Bed Bath & Beyond, founded in 1971, once stood as an iconic brand in American household goods retail and experienced significant growth. However, the company filed for bankruptcy in 2023 due to years of declining sales and multiple failed transformations. Subsequently, the company was acquired by online retailer Overstock.com and transitioned to operate solely online.
In July 2023, Bed Bath & Beyond closed all its stores nationwide, including 41 stores in California.
The parent company of the retailer, The Brand House Collective, announced that the first new Bed Bath & Beyond Home store opened on August 8 in Nashville, Tennessee. The shareholders approved this move in July.
Lemonis mentioned that Bed Bath & Beyond is taking a different investment strategy for California, planning to provide 24 to 48-hour delivery for California customers, often achieving same-day delivery in many cases. He emphasized that California residents can still purchase products directly through the company’s website, a method that prioritizes “the best interests of customers” without incurring the additional costs of California taxes and regulations.
“It’s time to return to common sense,” he stated. “Businesses should have a fair chance at success, employees should have enduring jobs, and customers should get reasonable prices. However, California’s system brings about the complete opposite results.” ◇