Bed Bath & Beyond Chairman Slams California Business Environment, Refuses to Reopen Locations

Bed Bath & Beyond executive chairman Marcus Lemonis says California is "overregulated, expensive, and risky" for businesses, refusing to reopen locations in the state. He joins a growing list of companies denouncing California's business environment, including In-N-Out owner Lynsi Snyder and firms such as Chevron, Tesla, and Charles Schwab. Despite this, California remains a premier tech hub with a vast talent pool.

Bed Bath & Beyond executive chairman Marcus Lemonis has announced that the retailer will not open any physical stores in California, citing a "highly overregulated, expensive, and risky" business environment. This decision comes amidst a growing list of companies, including In-N-Out owner Lynsi Snyder, Chevron, Tesla, and Charles Schwab, that have criticized California's business climate [1].

Lemonis, in a statement on Wednesday, said, "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" [2].

The decision is significant for California consumers who have been nostalgic for the in-store experience, as the company will only operate through its website. The retailer's decision to avoid California is part of a broader strategy to prioritize shareholders and customers over what Lemonis termed an "unsustainable model" [1].

Beyond Inc., the parent company of Bed Bath & Beyond, has been on a path to recovery following its bankruptcy in 2023. The company reported better-than-expected second quarter results in July, with revenue of $282.25 million beating analyst estimates [1]. The company's stock has gained 58.36% year-to-date, reflecting market optimism despite recent volatility [1].

Beyond Inc. announced plans to change its corporate name back to Bed Bath & Beyond, Inc. and reclaim the BBBY ticker symbol on the New York Stock Exchange effective August 29. The company aims to convert Kirkland’s locations into small-to-midsize Bed Bath & Beyond and buybuy BABY stores over 24 months [1].

Despite the criticism, California remains a premier tech hub with a vast talent pool. The state has attracted major tech companies such as Apple, Google, and Facebook, which have created thousands of jobs and contributed significantly to the state's economy.

References:
[1] 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
[2] https://www.cbsnews.com/sacramento/news/bed-bath-and-beyond-stores-california/