The Reality Behind Marcus Lemonis’s California Announcement
Something significant really did happen in August 2025: Marcus Lemonis, the executive chairman of Bed Bath & Beyond (now owned by Beyond Inc.), announced that the company would not open or operate any retail stores in California.
The statement, which Lemonis made public through a formal press release and social media posts, immediately drew national attention.
Lemonis said the decision wasn’t about politics — it was about business practicality. In his words, California had become “overregulated, expensive, and risky,”
creating one of the most difficult environments in America for companies to grow and remain profitable. He cited higher taxes, inflated wages, and layers of state and local rules that he believes “strangle” business growth.
Official statement regarding @BedBathBeyond
— Marcus Lemonis (@marcuslemonis) August 20, 2025
We will not open retail stores in California.
This isn’t about politics — it’s about reality.
California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our… pic.twitter.com/G5dSaigB3y
Instead of maintaining a physical presence in California, Lemonis said Bed Bath & Beyond would continue serving customers there through its website, offering rapid shipping — often within 48 hours — to avoid the additional costs that come with operating inside the state.
California officials quickly pushed back. Representatives for Governor Gavin Newsom pointed out that Bed Bath & Beyond had already shut down all its stores nationwide after its 2023 bankruptcy, and that its new corporate parent was only now beginning a small-scale relaunch.
From their perspective, Lemonis’s statement exaggerated the importance of the move, since the company hadn’t been operating California stores for some time.
Still, Lemonis’s comments struck a nerve. They echoed long-standing frustrations voiced by other business leaders who argue that California’s taxes, wages, and regulations drive companies to friendlier states.
Whether or not the move was purely symbolic, it reinforced the idea that California’s policies are discouraging new investment — particularly in brick-and-mortar retail.
To put it in context, Bed Bath & Beyond’s decision applies specifically to physical stores, not to all business within the state. The company continues to sell and ship products to Californians online. The move is best understood as both a cost-saving business choice and a public statement about the state’s regulatory climate.
Broader Implications
Lemonis’s decision arrives at a sensitive political moment. Governor Newsom, expected by many to seek national office in 2028, has faced growing scrutiny over California’s economic competitiveness.
The Bed Bath & Beyond announcement gave critics new material to question whether the state is losing its appeal as a place to do business.
For Lemonis, the message was clear: the company will focus on efficiency and online growth, not compliance with what he views as counterproductive bureaucracy. For California, it was another headline reinforcing a narrative that the state’s own rules may be driving opportunity elsewhere.
Whether this marks the beginning of a larger corporate retreat or remains an isolated decision, one fact is clear — the debate over California’s business environment is far from over.