Marcus Lemonis, CEO of Bed Bath & Beyond, sharply criticized California’s heavy regulations and high taxes, announcing that the retailer will forgo opening physical stores in the state. Instead, the company plans to serve California customers through rapid online delivery. Lemonis described the state’s business environment as “unsustainable” and unfair to both workers and shoppers.

The decision increases political pressure on Governor Gavin Newsom, who is considered a potential Democratic presidential candidate in 2028. Newsom has faced criticism over sanctuary policies and ongoing tensions with the Trump administration. The friction intensified recently when Border Patrol officers arrested someone outside a Los Angeles rally attended by Newsom, prompting his office to respond with a strongly worded all-caps statement labeling Trump a “CRIMINAL PRESIDENT.”