Bed Bath & Beyond's executive chairman, Marcus Lemonis, recently announced that the company has no plans to open stores in California, criticizing the state's business environment and calling for the ousting of Governor Gavin Newsom. This declaration was made during a Newsmax interview, where Lemonis pinpointed California's stringent regulations and economic policies as the primary reasons his company considers the state unviable for expansion.
“We want to be in markets where we can actually make a profit,” Lemonis stated. He expressed concerns about the constant threat of legal and regulatory issues in California, including potential class action lawsuits and excessive local government oversight. His criticisms extended directly to Governor Newsom, whom he accused of implementing policies that have rendered the state inhospitable for both businesses and residents.
The timing of Lemonis's comments coincides with a critical juncture for Bed Bath & Beyond. The home goods retailer, which once boasted over 1,500 stores nationwide, succumbed to bankruptcy in 2023, marking one of the decade's most significant retail collapses. In the aftermath, Lemonis and a consortium of investors acquired the brand and assets, relaunching it with a digital-first strategy and a selective approach to brick-and-mortar locations. The company's revamped retail presence debuted with the opening of Bed Bath & Beyond Home in Nashville, Tennessee, with additional openings planned—excluding California.
Newsom's office responded to Lemonis's announcement with a cutting remark. A spokesperson for the governor retorted to the Daily Mail, "After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed.” The governor himself joined the fray on Twitter, mocking the company's attempt to reinvent itself post-bankruptcy.
The contentious exchange highlights the ongoing debate over California's economic direction. Critics, like Lemonis, argue that the state's high regulatory costs, pollution reporting requirements, and elevated minimum wages compromise its competitive edge. On the other hand, proponents spotlight California's robust GDP, thriving tech sector, and leadership in various industries as evidence of its economic vitality.
Lemonis, who also helms Camping World, has previously butted heads with California officials. In one instance, he defied San Joaquin County by hoisting a large American flag without the requisite permit, symbolizing his broader defiance against what he views as overbearing state regulations. Additionally, Lemonis has openly critiqued California's new corporate emissions law, which mandates comprehensive greenhouse gas reporting for large companies—a policy he lambasted as "crazy" during a Fox News appearance.
The state's labor policies, including the $20 minimum wage for fast-food workers and the $25 hourly rate for healthcare staff, have become another focal point of contention. While lauded by Democrats as triumphs for workers, these measures have been met with pushback from business leaders who argue that such wage hikes drive labor costs to unsustainable levels, prompting some to pivot towards automation.
Despite the overtly political tone of his discourse, Lemonis insists that his decision to sidestep California is motivated purely by business considerations. He emphasized the state's reputation for being one of the most regulated, costly, and risky business environments in the nation. Beyond his political criticisms, Lemonis took a swipe at California's entertainment industry, suggesting that talent is increasingly opting to leave the state.
