Gov. Newsom reacts to Bed Bath & Beyond's refusal to open stores in California

Bed Bath & Beyond has announced it won't open physical stores in California as part of its recovery strategy following bankruptcy in 2023. Executive Chairman Marcus Lemonis criticized California's business environment as overregulated and expensive, making it difficult for companies to operate successfully.

The company reopened its first store near Nashville and plans to open approximately 300 neighborhood stores, excluding California entirely. Governor Newsom's office expressed surprise at the announcement.

Lemonis claims the decision isn't political, though he has previously criticized state regulations, including greenhouse gas reporting requirements for large corporations.