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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."