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August 27, 2025
Should Bed Bath & Beyond’s Chairman Be Badmouthing California?
Marcus Lemonis, executive chairman for Bed Bath & Beyond, said the chain won’t be opening any stores in California as part of its relaunch due to the state’s unfriendly business environment, but he insists it “isn’t about politics.”
“It’s about reality,” said Lemonis in a statement. “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.”
He added, “Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth. 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.”
Californians will continue to be able to purchase Bed Bath & Beyond products online, including delivery within 24 to 48 hours and same-day delivery “in many cases” being available. Lemonis said, “We’re taking a stand because it’s time for common sense. Businesses deserve the chance to succeed.”
Bed Bath & Beyond Aims For Revival
Lemonis’ comments come as the first revamped Bed Bath & Beyond Home store opened in Nashville, in early August, as part of a plan to convert roughly 75 former Kirkland’s locations nationwide by 2026. Bed Bath & Beyond had closed all its locations in a 2023 bankruptcy.
The Lebanese-American businessman is also CEO of Camping World and a familiar face on reality television, starring on CNBC’s “The Profit,” appearing on ABC’s “Secret Millionaire,” and once guest-hosting two episodes of “The Celebrity Apprentice” alongside future president Donald Trump in 2012.
Several high-profile firms have moved their headquarters out of California in recent years, including Chevron, Tesla, Hewlett Packard, and Charles Schwab, due in part to California’s high costs and stringent environmental regulations. Earlier this year, California was ranked the No. 1 most expensive state to start a business (New York was a close second), with the most regulations in the country, the third-highest corporate income tax rate, and the second-highest average commercial rent.
The state has also faced a raft of criticism from restaurants over its increased minimum wage laws, with fast food workers now earning at least $20 an hour.
Fans of California’s progressive approach to business point out that the state ranks as the fourth-largest economy in the world, recently outpacing Japan in GDP; as well as its record number of startups, its diverse talent pool, and dominance in industries like tech and entertainment.
Gov. Gavin Newsom’s Press Office Fires Back on X
Following Lemonis’ remarks, California Gov. Gavin Newsom’s press office wrote on X, “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed. We wish them well in their efforts to become relevant again as they try to open a 2nd store.”
“This is serious,” said San Jose Mayor and fellow democrat Matt Mahan in a different take on Lemonis’ X post. “We are shooting ourselves in the foot and we need to acknowledge that. San Jose is open for business, we’re doing everything we can to make it easier for our employers to succeed.”
Discussion Questions
Do you think Marcus Lemonis’ decision not to open any Bed Bath & Beyond stores in California makes business sense?
Do you generally agree with his comments on California’s business environment?
Poll
Loading …BrainTrust
Paula Rosenblum
Co-founder, RSR Research
Carlos Arámbula
Principal, Growth Genie Partners
Mark Self
President and CEO, Vector Textiles
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Let’s be objectively honest: comparatively, California is a high tax, high regulation state and it has a left leaning bias which is not always great for business. But let’s also be realistic: California is an affluent state where many retailers do business with great success. I don’t think it’s bad to criticize the business climate in California, but I also don’t think it is wise to completely rule out opening stores there. That said, before this conversation even has real meaning, Bed Bath & Beyond has to prove its stores actually work! Beyond’s recent results leave a lot to be desired!
So is it the latter because of the former, or despite it: the eternal question, isn’t it ?
I would say in spite of it. California is successful because of the ingenuity of its people and businesses, helped by the fact that aesthetically it is a beautiful state that pulls many people in. The government isn’t all that impressive, imho – although that’s not unique to CA!
I would say – based on a six decades participation in a Beta test – it’s both: much of the regulation is a luxury that a poorer state simply couldn’t afford, and many of the costs are (obviously?) the result of demand from high incomes – that home prices, and commercial rents, in the Bay Area are exponentially higher than, say, Mississippi, has little if anything to do with the politics of either…at least directly.
well, what are the most affluent red states? Then you’ll have your answer
That’s it, Neil. It’s an over-regulated and over-taxed state in some ways, and it’s also the world’s 4the largest economy. I would say it’s a very self-defeating strategy. Good luck in North Dakota or wherever you decide to open another store, BBB. Dumb move
Well the other point is that plenty of businesses (including retailers) do make it work in CA. So it is an odd thing to say. Maybe he doesn’t have confidence that his stores will work there…
BB&B had the majority of their stores in CA in the past… so is there a bit of excuse wrapped in his statement as contributing factor to downfall of original BB&B?
“We’re taking a stand”
Taking a stand, against 1 state, when the 1 test store just opened.
I find it an odd statement to make in open view of consumers… as if corporate taxation was baked into consumer choice to shop there or not.
Marcus Lemonis is never short of opinions on virtually anything and so saying he won’t open stores in California is just the latest. Let’s remember they have exactly one store right now and if I understand Beyond’s deal with Kirklands/Brand House, it is the latter that is operating those stores and deciding where to put them. Not sure Lemonis has any part in that decision making. And part of me thinks there’s something else to all of this that we don’t know about…yet. What’s to be gained by this kind of statement is Beyond me.
Press announcements sounded like it was Kirkland stores that were being converted into new BBB&H stores. That it may not be a clean slate, open evaluation, of where to place stores.
CA consumers can (and have) found other options.
Move over Aaron Leiws, you’ve got company! No, Aaron Lewis, “California” is Not The Problem with Country Music – Saving Country Music This is a perfect example of not leaving well enough alone: start with a few (possibly) reasonable remarks – that actually answer the question asked – and then editorialize…bigly; I didn’t think much of BBB propects before, with this kind of “leadership” at the helm, I think even less of it now.
(And BTW Tom: no company moves it’s HQ out of a state because of environmental regulations)
Marcus Lemonis is entitled to his opinion and his decision to not open stores in California. Since he’s trying to essentially re-build Bed, Bath & Beyond from scratch, he can certainly live without doing business in California for the foreseeable future – maybe forever. There are plenty of other markets where he can open stores. As far as his comments about the business environment in California, it’s fair game.
I came to say much the same thing, Mark. You are spot on. Lemonis is a smart guy, and as you said, he is absolutely entitled to his opinion. At least he walks the talk.
He is abandoning the largest retail market in the U.S.
Lemonis is either being disingenuous or showing incompetence. Every day, countless businesses help drive and contribute to the California economy — 5th largest economy globally.
Bed Bath and Beyond is already in trouble-the CEO should fix the business first before he starts “arm waving” about a state he perceives as business unfriendly. If this were, say, Costco, it would be big news. It is BB&B, so no one is going to care, even though he is accurate in his assessment.
Does anyone else automatically presume political motivation when people start their comments saying that it’s not?
The ever-loquacious Mr. Lemonis is entitled to his latest opinion. Did so many fine points need to be put on it? Methinks the man doth protesteth too much. It feels like a baffling case of overkill that warrants concern as Bed Bath & Beyond attempts to scale its next act.
BBBY seems quite confused — especially making a broad statement about California when they have 1 store in existence. Yes, they have a bunch “planned” but we know these types of retail comeback stories are extraordinarily difficult (Toys-R-Us, Sharper Image, etc…). What makes it more confusing is that Marcus Lemonis walked back the comment suggesting he hadn’t intended it to be political. That primarily makes BBBY looked confused. My advise to retailers is to keep broad declarations like these out of the press — the retailer gains nothing and there are far more effective ways to fight policies they might dislike. The unexpected result were the Memes which suggested BBBY had joined with Blockbuster, Borders Books, and others to complain about California. That’s NOT a good look for bringing BBBY back.
When executives lead with disclaimers, they’re usually doing exactly what they claim not to be doing. Attempts to make BBB relevant through controversy rather than retail excellence do not make for sustainable brand building. Executive ego is creating unnecessary risk for BBB stakeholders: employees, customers, investors, and partners. Political statements disguised as business strategies muddy the waters and lead to confused operations.
California has always been a dichotomy of massive success across all sectors and high taxes and regulations. Walking away from the largest markets in the US because they can’t figure out how to make it profitable is another example of hubris. I’m not sure Californios will spend a lot of time renting their clothes and sitting in ashes over this one.
I used to be a fan of BBB. I found the content to be well edited and curated, and the pricing to be competitive. They were easy and quick to shop. I now need some new pots and pans, and obviously need to shop elsewhere. Turns out I will have an abundance of choices available at Target, Walmart, Kohl’s, Macy’s, Amazon…… I would have been on auto-pilot to BBB, but…oh well. If Mr. Lemonis wants the 4th largest market on the planet to continue to live without BBB, they will somehow struggle through. It’s not as though the state will decide some day to sign up for his point of view.
My local BBB used to be down the strip mall from Walmart, and a block from Target. Do they have a California problem, or a competitive problem?
Sounds a bit Trumpian. Distract discussion from BB & B’s poor performance to attacks on the state of California. These comments would be more relevant & purposeful if they came from a successful retailer.
Lemonis is not leaving California behind. He is making it clear that they are still in business and that you can order anything you want online. Even better, if you are in California, you can enjoy fast delivery.
He skillfully used the media to convey this message in a way that traditional media amplified.