A Public Spat Ignites Debate
In a recent exchange on social media platform X, Marcus Lemonis, the executive chairman of Beyond Inc., which owns Bed Bath & Beyond, extended an olive branch to California Governor Gavin Newsom amid growing tensions over the state’s business climate. Lemonis’s tweet, posted on August 22, 2025, responded to a sarcastic remark from Newsom’s office about selling hats, pivoting instead to a proposal for a constructive dialogue. He suggested convening business leaders to address barriers to investment and employment in California, emphasizing that the state’s high costs aren’t primarily driven by real estate but by regulatory layers that the governor could influence.
Lemonis, known for his role on CNBC’s “The Profit” and his new FOX reality series, The Fixer, argued that streamlining regulations and inducing investment could position California as a beacon for commerce nationwide. His message highlighted the need for a “healthy and prosperous work environment” for employees, affordable products for consumers, and profits for owners—core tenets of business success that he claims are hampered in the Golden State compared to others.
Roots of the Conflict
The back-and-forth stems from Bed Bath & Beyond’s announcement earlier this week that it would not reopen retail stores in California, citing an “overregulated, expensive, and risky” environment. In a statement shared on X, Lemonis declared, “This isn’t about politics—it’s about reality,” pointing to challenges like high operational costs and compliance burdens that make expansion unviable. This decision comes as the retailer attempts a comeback after its 2023 bankruptcy, with plans to open hundreds of stores elsewhere through partnerships like one with Kirkland’s.
Governor Newsom’s office fired back swiftly, mocking the company as bankrupt and irrelevant in a post on X, stating, “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed.” The response, which included well-wishes for the company’s efforts to “become relevant again,” escalated what Lemonis insists is a non-political issue into a public relations skirmish, drawing attention from media outlets and business analysts.
Broader Implications for California’s Economy
Industry insiders view this episode as symptomatic of deeper frustrations among corporations operating in or eyeing California. According to a report in Yahoo Finance, Lemonis’s criticism echoes complaints from other executives about the state’s regulatory framework, including mandates on emissions reporting and labor laws that increase overhead. California’s Climate Corporate Data Accountability Act, for instance, requires large companies to disclose greenhouse gas emissions, a measure Lemonis has previously contested on X as contributing to inflation.
Data from the California Chamber of Commerce supports these concerns, noting that the state has seen an exodus of businesses to lower-cost locales like Texas and Florida. A recent analysis by The Gateway Pundit highlighted how policies under Newsom have led to “killing the golden goose,” with Bed Bath & Beyond joining a list of retailers shunning the state. Yet, Newsom has defended California’s economy vigorously, pointing to its status as the world’s fourth-largest economy and leadership in venture capital and innovation, as he stated in a 2023 X post boasting about new business starts.
Lemonis’s Call for Dialogue
In his latest tweet, Lemonis urged Newsom to focus on actionable reforms rather than quips, suggesting that easing “frictions” like inconsistent regulations could prevent “California pricing” tactics where businesses hike costs to offset burdens. He even tied the governor’s potential national ambitions to demonstrating leadership on this front, proposing a sit-down to balance the state’s budget through increased investment and reduced outflows.
Responses on X have been polarized, with some users praising Lemonis for his candor—garnering over 18,000 views on his proposal tweet—and others defending Newsom’s progressive policies. A fact-check by Yahoo News debunked unrelated claims about Newsom’s office but underscored the real debate over California’s business viability. Lemonis followed up by questioning whether Newsom was celebrating the company’s past bankruptcy or its revival, keeping the conversation alive.
Potential Paths Forward
For industry observers, this dialogue could catalyze change if it leads to the proposed meeting. Lemonis outlined four pillars for improvement in an earlier post: streamlining regulations, consistent compliance rules, tax incentives, and infrastructure investments. These align with recommendations from business groups urging California to compete more aggressively with states offering lighter regulatory loads.
However, Newsom’s track record suggests resistance; his administration has prioritized environmental and social initiatives, such as the 2035 zero-emission vehicle mandate, which he touted on X in 2021 as market-moving. Critics argue this approach deters investment, as evidenced by AOL News coverage of Bed Bath & Beyond’s stance. Supporters, meanwhile, cite robust economic indicators, like California’s top ranking in tourism spending, as proof of resilience.
Eyes on the Golden State’s Future
As this story unfolds, it underscores a pivotal moment for California. Will Newsom engage with critics like Lemonis to refine policies, or will the state double down on its model? Business leaders are watching closely, knowing that outcomes could influence investment decisions nationwide. Lemonis’s respectful yet firm tone in his tweet—ending with “rather than making hats let’s make hay”—signals a desire for collaboration over confrontation, potentially setting the stage for reforms that could restore California’s allure as a business powerhouse.
Recent web searches reveal ongoing commentary, with The Hill reporting Newsom’s office knocking the retailer post-announcement, and Daily Caller framing it as a refusal driven by reality. On X, sentiment leans toward frustration with regulations, with posts echoing Lemonis’s call for a pro-business reset. If realized, such a summit could bridge divides, fostering an environment where companies like Bed Bath & Beyond reconsider their stance, ultimately benefiting the state’s economy and its residents.