The revival of Bed Bath & Beyond has sparked an unexpected war of words between its executive chairman, Marcus Lemonis, and California Governor Gavin Newsom. At the heart of the dispute is not just the fate of a retail giant but the broader debate over whether California has become too hostile for business.
The Spark
When Beyond Inc., the company now steering Bed Bath & Beyond’s comeback, announced plans to roll out 300 new neighborhood stores nationwide, Lemonis made it clear that California would not be part of the expansion. The first new concept store opened in Nashville this summer, but the Golden State—once a crown jewel of retail markets—was conspicuously left out.
Lemonis, a seasoned businessman and star of The Profit, did not mince words. He cited California’s high taxes, fees, wages, and regulatory red tape as the reasons behind the decision. “This isn’t about politics—it’s about math,” Lemonis argued, pointing to the challenge of operating profitably in a state often ranked among the most expensive for businesses.
Newsom Fires Back
Governor Newsom, never one to shy away from a fight, responded with biting sarcasm. From his office’s social media account, he mocked the brand’s bankruptcy and questioned its relevance:
“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 second store.”
For Newsom, the jab was both a defense of California’s reputation and a dismissal of Lemonis’s criticism as opportunistic.
The Bigger Picture
The exchange highlights a deeper issue: California’s standing as a place to do business. While the state boasts the fifth-largest economy in the world, its high costs and stringent regulations have driven several companies to relocate operations elsewhere in recent years. Tech giants, manufacturers, and retailers alike have pointed to similar concerns.
Lemonis’s decision underscores a trend. California may still dominate in innovation, entertainment, and tech, but for mid-sized retail operations, the math often doesn’t add up. For Bed Bath & Beyond, already fighting to regain consumer trust after bankruptcy, the risks outweighed the rewards.
Lemonis Doubles Down
Instead of backing away, Lemonis doubled down on his position, calling for “common sense governance” to make California more attractive to entrepreneurs and working families. He stressed that his company’s expansion is about building stores in communities where people can afford to shop and where businesses can thrive without being strangled by policy.
Why It Matters
At first glance, this spat may look like a headline-grabbing feud. But it reflects a national conversation about the relationship between government and business. On one side, leaders like Newsom argue that California’s higher wages and regulations are part of protecting workers and ensuring quality of life. On the other, executives like Lemonis insist that overregulation kills opportunity, drives up consumer prices, and sends jobs to other states.
Conclusion
As Bed Bath & Beyond attempts a comeback, its absence in California raises questions that go beyond retail shelves. Will California continue to serve as a hub of innovation and growth, or will it price itself out of the very markets it seeks to dominate? For now, Marcus Lemonis has drawn a clear line: if California doesn’t change course, it won’t be part of Bed Bath & Beyond’s future.
