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Bed Bath & Beyond to abandon retail stores in California due to high regulations and costs.
ByAinvest
Thursday, Aug 21, 2025 10:36 am ET1min read
Bed Bath & Beyond has announced it will not open or operate retail stores in California due to the state's "overregulated, expensive, and risky environment" for businesses. The company will instead focus on delivering products through its online platform, BedBathandBeyond.com, to serve California customers. This decision is based on the company's responsibility to its customers and shareholders, and its desire to avoid the state's unsustainable model.
Bed Bath & Beyond has announced it will not open or operate retail stores in California, citing the state's "overregulated, expensive, and risky environment" for businesses. The company, currently operating under the name Beyond Inc., will instead focus on delivering products through its online platform, BedBathandBeyond.com, to serve California customers [2].The decision was made by executive chairman Marcus Lemonis, who stated that the company prioritizes shareholders and customers over what he termed an "unsustainable model." He argued that California's strict regulations would force Bed Bath & Beyond to inflate prices in brick-and-mortar stores and make it impossible for them to guarantee long-term employment [2].
California Governor Gavin Newsom challenged the decision, responding on X Wednesday: "The company that already went bankrupt and closed every store across the country two years ago? Ok." Newsom questioned the company's criticism of California's regulatory environment [1].
The stock volatility of Beyond Inc. reflects market uncertainty following the announcement. Shares closed on Wednesday at $8.90, down 4.40% amid the development, but have gained 58.36% year-to-date [2].
The company's current strategy involves converting Kirkland’s locations into small-to-midsize Bed Bath & Beyond and buybuy BABY stores over 24 months, starting with a Nashville location. This move is part of the company's broader plan to leverage its brand and intellectual property to return to retail after filing for bankruptcy and closing hundreds of stores just two years ago [2].
References:
[1] https://www.hoganlovells.com/en/publications/californias-new-climate-disclosure-laws-implications-for-the-life-sciences-and-health-care-sectors
[2] https://www.benzinga.com/markets/equities/25/08/47251283/gavin-newsom-claps-back-at-bed-bath-beyonds-california-store-snub-cites-bankruptcy-history-as-byon-stock-hovers-near-9
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