On Aug. 20, Bed Bath & Beyond announced that its planned return to brick-and-mortar retail will bypass California. Executive Chairman Marcus Lemonis said the state’s heavy regulations and high costs make it too risky for business, criticizing California for imposing steep taxes, fees, wages and regulations that he says stifle growth.
The retailer, which shuttered all stores after filing for bankruptcy in 2023, has since rebranded as Bed Bath & Beyond Home and launched a new store in Tennessee, with plans for about 80 more openings nationwide next year.
It’s not the only company that stopped their operations in California this year. Realtor.com announced a shift of its headquarters from California to Texas in February. The real estate listings site, run by News Corp.’s Move Inc., is relocating from Santa Clara to Austin, where it has leased space since 2019.
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Many companies from California — including tech, home improvement, real estate, fashion and food — have decided to relocate their headquarters to more affordable places. A report by the Public Policy Institute of California says relocation choices often hinge not only on a region’s size and proximity but also on business costs tied to taxes and regulations. Companies also weigh the availability of skilled workers and hiring expenses shaped by housing costs and income tax rates.
According to the report, 789 companies moved their headquarters out of California from 2011 to 2021, with departures accelerating after 2017. Over the same period, the number of firms relocating into California fell sharply, dropping from 137 in 2011 to just 68 in 2021.
Here is a table of the corporate exodus from California since 2024, according to The California Book of Exoduses from California Policy Center.