Newsom, Mahan react after Bed, Bath & Beyond CEO shades California, saying they won’t reopen in state

SAN FRANCISCO (KGO) — Bed, Bath & Beyond’s CEO is calling out California in a statement Wednesday two years after the company filed for bankruptcy and closed all of its stores nationwide.

Now, stores are slated to reopen across the country, except in California.

That statement reads in part:

“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. It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”

Governor Gavin Newsom’s office, snarkily, responded to the CEO’s comments on X.

Saying they wish the company well on become relevant again.

While the governor dismissed Bed, Bath & Beyond’s CEO, some Bay Area politicians took a different approach, saying empty storefronts are a serious problem.

That includes San Jose Mayor Matt Mahan.

“I think in California where we have one million people out of work, we have the highest unemployment rate in the country, out of respect for Californians who are just struggling to make ends meet, we need to focus on solutions,” Mahan said.

Mahan says it’s important for California not to get in its own way when it comes to business.

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He also said that San Jose is doing everything it can to make it easier for employers in the city to succeed.

Something Mahan believes will only be accomplished by improving public safety.

“To be more business friendly, we’ve got to get back to basics. We have to be safe, clean, we’ve got to get everybody housed. And we’ve got to make it easier to start a business and operate a business here,” said Mahan.

And as for if California is too regulated and overtaxed, some like San Jose State University assistant economics professor Julian Vogel say the reality can often times be complex.

“For example, California is often cited as having corporate income tax, which is true. Other states, like for example Texas, do not. At the same time Texas, for example, levies a gross receipts tax which taxes businesses a certain amount based on their revenue,” Vogel said.

Bed, Bath & Beyond says while they don’t plan to open any physical stores in the state, Californians will still be able to shop at their stores online.