Beyond Won't Open Stores in California Due to State's 'Overregulated' Business Environment

By Connor Hart

Beyond said it won't open or operate retail stores in California, citing the state's hindering business environment.

"This decision isn't about politics--it's about reality," Executive Chairman Marcus Lemonis said Wednesday. "California has created one of the most overregulated, expensive, and risky environments for businesses in America. It's a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers."

Lemonis added that many businesses can't sustain the higher taxes, fees and wages required under California law, and that the state's "endless regulations" impede growth.

In lieu of retail stores, the owner of Bed Bath & Beyond, Overstock and Buybuy Baby plans to serve California customers through its online retail channels. The company said it will invest in these channels to support statewide deliveries in 24-to-48 hours.

"We're taking a stand because it's time for common sense," Lemonis said. "Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices."

"California's system delivers the opposite," he concluded.

Write to Connor Hart at connor.hart@wsj.com