The popular American retail brand’s executive chairman, Marcus Lemonis, made it clear that the company has no plans to reopen physical stores in California.

When Bed Bath & Beyond announced its comeback, many shoppers in the state expected to see the familiar blue-and-white storefronts return to their neighborhoods. But in a statement, Lemonis said reopening in California is simply too risky, citing high costs and the state’s 8.84 percent corporate tax rate.

“This 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,” Lemonis said.

The company filed for bankruptcy in 2023, shutting down all of its physical stores after struggling to compete with e-commerce giants. Now under new ownership, Bed Bath & Beyond plans to open 300 retail stores across the country over the next 24 months—just not in California.

Meanwhile, in a post on X, the Press Office of California Governor Gavin Newsom noted that they believed the retailer was gone for good, echoing what many Americans thought.

“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,” the post read.