Marcus Lemonis, the executive chairman of Bed Bath & Beyond and a prominent investor, reportedly delivered a blunt assessment of California’s business climate on Wednesday, telling Newsmax he would “love to see Gavin Newsom out of office” as companies and even Hollywood insiders flee the state.
“We want to be in markets where we can actually make a profit and we can provide a very competitive and fair wage and we don’t wake up every morning wondering if we’re gonna be sued by some class action lawsuit or over-regulated by a local government,” Lemonis said in an interview on Rob Schmitt Tonight.
For Lemonis, California’s problems are no mystery. Businesses, both large and small, have pulled up stakes in recent years, citing soaring costs and burdensome rules. “I think at the end of the day, when you look at businesses that have had to leave California, those are the principle reasons,” he explained. “And the fact that they keep telling us in California that they’re the 4th largest economy in the world, I get it, but it’s also probably one of the worst places to try to make a profit.”
He added that the state’s economic size was little comfort to companies that could no longer operate under the weight of regulations. “At some point, you know, I’d love to see Gavin Newsom out of office,” Lemonis said. “I’d love to see a more responsible, balanced approach to how we manage businesses in there, and if you want companies to invest, you’re gonna need to incentivize them to do so.”
Lemonis also spoke from experience as a television personality who has worked in and around Hollywood.
Even in the entertainment industry, long considered California’s signature asset, enthusiasm is waning. “I can tell you, the people in Hollywood don’t wanna be there anymore either,” he noted. “And once you’ve lost that audience, once you’ve lost the entertainment industry, I don’t know where you recover from there.”
He argued that Newsom has persuaded Californians to overlook serious flaws in the state’s economic policies. “He has convinced California residents that they’re living in a wonderful place, and there are parts of that that are true,” Lemonis said. “But for small business owners that are trying to make a living, that are over-regulated, I sympathize with small business owners and that’s really, you know, part of why we’re getting out there and saying somebody’s gotta say something.”
The remarks followed Lemonis’s announcement that Bed Bath & Beyond, in its revival effort, would “not open or operate” any retail stores in California, citing the state’s “risky environment” of high taxes and regulation.
Governor Newsom, however, dismissed the critique. “The company that already went bankrupt and closed every store across the country two years ago? Ok,” the governor quipped.
His press office followed up with a statement suggesting Lemonis’s comments were irrelevant. “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed,” it said. “We wish them well in their efforts to become relevant again as they try to open a 2nd store.”
The exchange highlights a deeper divide: business leaders warning about California’s shrinking competitiveness, and a governor more interested in mocking his critics than addressing their concerns.
[READ MORE: Trump Trains His Fire on Newsom, Calling Out California’s Decline]
