Core Viewpoint - Bed Bath & Beyond has decided not to open stores or operate in California due to the state's stringent regulations and high costs, which the company claims create an unsustainable business environment [1][2][3]. Group 1: Business Decisions - The company will focus solely on e-commerce and delivery services in California, citing a commitment to shareholders and practical business practices [2]. - Bed Bath & Beyond has recently launched a return to retail after filing for bankruptcy and closing hundreds of stores two years ago [2]. - The company plans to open five new "neighborhood" stores, each 15,000 square feet, this year as part of a pilot program [9][10]. Group 2: Regulatory Environment - Marcus Lemonis criticized California's regulations, stating they lead to higher taxes, fees, and wages that many businesses cannot sustain [2][3]. - The minimum wage in California, particularly for the fast-food industry, has been raised to as high as $20, which Lemonis argues is unmanageable for businesses [3]. Group 3: Partnerships and Investments - Beyond Inc., the current owner of Bed Bath & Beyond, has made a $25 million investment in Kirkland's Inc., which has become the exclusive operator for new smaller-format Bed Bath & Beyond stores [5][6]. - The partnership aims to create a more efficient retail model with lower fixed costs, focusing on assortment, space management, and merchandising [9].