Bed Bath & Beyond is making a comeback with new brick-and-mortar stores after filing for bankruptcy in 2023 and closing all of its locations—except in one state.
On Wednesday, Aug. 20, Bed Bath & Beyond’s Executive Chairman, Marcus Lemonis, confirmed that the retailer “will not open or operate retail stores in California.”
“This decision isn’t about politics — it’s about reality,” Lemonis said. He cited California as having “one of the most overregulated, expensive, and risky environments for businesses in America,” making it “harder to employ people” and “keep doors open.”
He pointed to “higher taxes, higher fees, [and] higher wages” as factors contributing to instability and the challenge of scaling operations. “At Bed Bath & Beyond, our responsibility is to our customers and our shareholders. We will not participate in a system that undermines both,” Lemonis stated.
Instead, the company plans to provide 24 to 48-hour delivery and same-day service in California rather than opening physical stores.
California Governor Gavin Newsom’s official press office account responded on X (formerly Twitter), saying, “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed. We wish them well in their efforts to become relevant again as they try to open a 2nd store.”
Newsom also commented from his personal X account, writing, “The company that already went bankrupt and closed every store across the country two years ago? Ok.”
Lemonis replied, suggesting a plan that includes pro-business reforms in California. “You are a smart man and I know the post below is out of frustration,” he noted. Newsom has not responded to Lemonis’s latest remarks.
Bed Bath & Beyond opened its first new location in Nashville on Aug. 8, partnering with The Brand House Collective and rebranding it as Bed Bath & Beyond Home.
Amy Sullivan, CEO of The Brand House Collective, said in a press release, “We’re proud to reintroduce one of retail’s most iconic names with the launch of Bed Bath & Beyond Home, beautifully reimagined for how families gather at home today.”
After filing for Chapter 11 protection in April 2023, Bed Bath & Beyond’s name, intellectual property, and digital assets were acquired by Overstock.com for $21.5 million. Overstock relaunched its website as BedBathandBeyond.com, offering a range of name-branded products including bedding, home furnishings, and kitchen items.
Overstock CEO Jonathan Johnson said at the time, “Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.”
The company’s decline appeared to begin in 2020, with the closure of 40 locations. In 2022, Bed Bath & Beyond announced plans to shut 150 “lower-producing” stores nationwide and cut its workforce by 20%. Despite receiving over $500 million in new financing, same-store sales reportedly fell by roughly 26%.
The retailer also shifted to a “direct-to-consumer” strategy, aiming to launch additional in-house brands. Following this announcement, the company’s stock fell 26% in premarket trading.
By early 2023, prior to filing for bankruptcy protection, Bed Bath & Beyond had closed an additional 87 stores across 30 states.
