Bed Bath & Beyond CEO Marcus Lemonis announced that the retailer will not open or operate any stores in California, citing the state’s burdensome regulations and high costs. In a strongly worded statement, Lemonis criticized what he called an overregulated and expensive environment that makes it difficult for businesses to thrive and for customers to receive fair value.

Lemonis emphasized that the decision was not political but practical. He cited California’s high taxes, unsustainable wage requirements, and excessive regulations as reasons businesses are struggling. According to him, even during times of budget surplus, the state’s economic policies place undue pressure on both citizens and employers.

Instead of physical expansion in California, Bed Bath & Beyond will focus on fast, efficient online delivery to serve the state’s consumers. Lemonis stated that Californians will continue to access products through the company’s website, often with same-day or next-day service—without the added costs of maintaining physical storefronts in an “unsustainable model.”

This announcement could have political consequences for California Governor Gavin Newsom, who is widely believed to be preparing a 2028 presidential run. The statement adds to existing criticism of Newsom’s policies, including sanctuary laws and economic strategies that some claim hinder business growth.

Tensions escalated further last week during a “Liberation Day” anti-Trump rally organized by Newsom in Los Angeles. U.S. Border Patrol agents maintained a visible presence outside the event and made at least one arrest. Their attendance drew protests from attendees and sparked media attention.

In response to Border Patrol’s actions, Newsom’s office issued a bold statement condemning Donald Trump, calling him a “CRIMINAL PRESIDENT” and refusing to be intimidated. Border Patrol officials, meanwhile, asserted their presence was meant to improve safety and would continue regardless of political pushback.