Bed Bath & Beyond’s new parent company has made it clear: no new stores are coming to California. Beyond Inc., led by executive chairman Marcus Lemonis, said the state’s high costs and burdensome regulations make it an impossible environment for brick-and-mortar retail.
Lemonis explained that the decision is not political but practical. California’s high taxes, labor costs, and dense regulatory requirements create challenges he said the company cannot afford as it rebuilds after bankruptcy. Bed Bath & Beyond collapsed in 2023 before being acquired by Overstock.com, which rebranded as Beyond Inc. The revival strategy focuses on targeted physical expansion across the country—just not in California.
Instead, the company is moving forward with new locations elsewhere. The first “Bed Bath & Beyond Home” store opened in Nashville, with plans to convert 75 former Kirkland’s stores into Bed Bath & Beyond outlets by 2026. California shoppers will still be able to purchase through the online platform, which offers delivery within 24 to 48 hours and same-day service in certain regions.
The decision sparked criticism from California officials. A spokesperson for Governor Gavin Newsom dismissed the announcement, noting the company had already gone bankrupt and questioning whether the revival effort could succeed. The governor’s office suggested the company’s struggles stemmed from mismanagement rather than the state’s business climate.
For Beyond Inc., the calculation is straightforward. Opening new stores requires a favorable operating environment, and executives say California simply does not offer one. Instead, the brand will focus on states where overhead is lower and the path to profitability is clearer.
