Bed Bath & Beyond on Wednesday said it will not open stores or operate in California as it issued a scathing rebuke of the state’s intense lefty policies.
Marcus Lemonis, executive chairman of Bed Bath & Beyond, said the decision “isn’t about politics – it’s about reality.”
“California has created one of the most overregulated, expensive and risky environments for businesses in America,” he said in a press release.
“The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.”
The beleaguered chain has launched a return to retail after filing for bankruptcy and closing hundreds of stores just two years ago.
It cited a commitment to shareholders and “common sense” business practices as its reasoning for offering only e-commerce and delivery services in California.
Lemonis 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.
In particular, he took aim at intense worker protections like California’s minimum wage hike – as high as $20 for the fast-food industry – arguing that businesses can’t handle the costs.
A spokesperson for California Gov. Gavin Newsom clapped back: “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,” the spokesperson told The Post in a statement.
The brand, which is now owned by Beyond Inc., opened its first new location earlier this month in Nashville.
Earlier this year, Kirkland’s Inc. finalized a $25 million investment from Beyond, which also owns Overstock, Zulily and BuyBuy Baby.
As part of the deal, Kirkland’s has become the exclusive brick-and-mortar operator and licensee for new, smaller-format Bed Bath & Beyond stores.
The company plans to open five of these 15,000-square-foot “neighborhood” stores this year.
“The key to retail is efficiency in assortment, space management, sourcing and merchandising, all while recognizing that smaller, tighter footprints with significantly lower fixed cost models is a winning recipe,” Lemonis said last year when the partnership was announced.
If the pilot program goes well, it could lead to a broader physical store rollout, the company said.
Home decor chain Kirkland’s operates more than 300 of its own stores across more than 30 states.
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