Bed Bath & Beyond, newly revived after its bankruptcy as part of Beyond Inc., is embarking on ambitious plans to open 300 new stores in the next two years, but the company is taking a bold stance by refusing to open any locations in California, citing prohibitive costs and regulations.
Executive Chairman Cites High Costs, Regulations
The strategy comes straight from executive chairman Marcus Lemonis, who announced the move in a company statement:
“California has created one of the most overregulated, expensive, and risky environments for businesses in America,” Lemonis stated. He further stressed that this decision is practical, not political, following years of grappling with the state’s high taxes, fees, wages, and strict regulatory oversight.
Bed Bath & Beyond is “taking a stand because it’s time for common sense,” Lemonis explained. In a Fox News interview, he expanded:
“We made the decision to not open in the state of…
California, as we start to open up stores we’re planning on opening 300 over the next 24 months. When you look at the complexity, both on the real estate side, on the regulatory side, both on the product and the employee side, it’s just too cost-prohibitive to do it.
At some point, some businesses need to take a stand and remind the state of California that while they keep reminding us that they’re the fourth-largest economy in the world, that’s going to dissipate over time, so we are just going to serve those customers with our online business.” Record Store Closures, Now a Second Chance Before its bankruptcy and nationwide store closures in 2023, Bed Bath & Beyond operated about 365 stores, with California leading the list at just under 90 locations as of early 2022.
The famed home goods retailer’s troubles led to acquisition and rebranding: Overstock.com picked up the Bed Bath & Beyond intellectual property and briefly operated under the name Beyond Inc. Now, Bed Bath & Beyond, Inc. is reclaiming its BBBY ticker symbol and moving forward with brick-and-mortar and online expansion.
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