Newsom Trolls Bed Bath & Beyond, Gets Publicly Embarrassed by Response [WATCH]

California Governor Gavin Newsom is facing renewed criticism after an online exchange with businessman Marcus Lemonis, executive chairman of Bed Bath & Beyond, highlighted ongoing concerns about the state’s business environment.

The controversy began when Lemonis stated that Bed Bath & Beyond had no plans to return to California, citing difficulties operating in the state.

Official statement regarding @BedBathBeyond

We will not open retail stores in California.

This isn’t about politics — it’s about reality.
California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our… pic.twitter.com/G5dSaigB3y

— Marcus Lemonis (@marcuslemonis) August 20, 2025

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“The company that already went bankrupt and closed every store across the country two years ago? Ok,” Newsom wrote in response, referring to the chain’s nationwide closures in 2022.

The company that already went bankrupt and closed every store across the country two years ago? Ok. https://t.co/lW43NTBeEc

— Gavin Newsom (@GavinNewsom) August 20, 2025

Two days later, Gavin Newsom was still mocking Bed Bath & Beyond:

Wow! Bed Bath and Beyond just reached out to sell our hats. No thank you! https://t.co/QusgXIH4G9

— Gavin Newsom (@GavinNewsom) August 22, 2025

Lemonis quickly replied, urging Newsom to take a more constructive approach.

“Thank you for the note below. Rather than taking time on topics like hats, I’d like to propose a sit down with business leaders from companies across sectors to determine what can be done to drive business and people investment in California,” Lemonis wrote in a statement posted to social media.

In his response, Lemonis encouraged the governor to focus on easing regulations and fostering investment rather than dismissing companies that have struggled in the state.

“Any business as you know is ultimately determined by providing a healthy and prosperous work environment for people, offering a solid product or service at a great price for consumers and making a profit for owners and investors,” he explained.

“As a current business owner in California, we are able to be part of the strong commerce that exists there but in comparison to other states struggle to have the metrics line up. The cost of doing business isn’t led by real estate costs and in fact based on the size of addressable market is equal to and in some cases below other geographic areas. The real friction comes on the layers you have the ability to influence,” Lemonis continued.

He added that California’s leadership has an opportunity to reset the business climate.

“Your ability to show the market what is possible is before you. Slim down regulations, induce investment and become the bell weather for commerce in America,” he wrote.

California has seen an exodus of businesses in recent years, with companies citing regulatory burdens, high taxation, and rising operating costs as major factors.

While California remains one of the nation’s largest economies, it has struggled to retain some corporate headquarters and industries that have opted to relocate to states with fewer restrictions and lower costs.

Lemonis suggested that addressing these factors could stabilize the state’s economic standing.

“Respectfully, I am confident that an intense and fair and balanced look at those frictions and a sensible and practical plan to ease those over time will be the fire start,” he said.

He warned that failure to address costs and regulations would continue to harm residents.

“Your residents deserve to not have some companies develop ‘California pricing’ to keep their doors open but rather focus on making the ‘Golden State’ golden for all,” he wrote.

Lemonis closed by challenging Newsom to pursue serious reform rather than political rhetoric.

“If your aspiration is beyond governor, the moment is now to put this type of idea into action creating the ‘gold standard’ for business everywhere. So, rather than making hats let’s make hay,” he concluded.

Dear Governor @GavinNewsom ,

Thank you for the note below. Rather than taking time on topics like hats, I’d like to propose a sit down with business leaders from companies across sectors to determine what can be done to drive business and people investment in California. Any… https://t.co/GcbkyNAkVx

— Marcus Lemonis (@marcuslemonis) August 22, 2025

As of Friday, Newsom had not issued any public follow-up to Lemonis’ comments.

The exchange comes at a time when California’s business climate remains under scrutiny, with state leaders facing questions about how to maintain growth while stemming the departure of employers.

The back-and-forth underscored the ongoing tension between California’s regulatory framework and calls from business leaders for reforms aimed at making the state more competitive nationally.

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