Devaughndre Broussard, 19, confessed to the killing after he was one of seven people arrested Friday during a raid on Your Black Muslim Bakery and several homes, The Oakland (Calif.) Tribune reported Saturday.
Broussard, who is on probation for a robbery conviction, said he killed Bailey as he walked to work downtown Thursday in retaliation for stories Bailey had written about the bakery that cast it in a negative light, police said.
The shotgun used to kill Bailey was recovered in the raid, said Oakland Deputy Chief Howard Jordan. No one else is expected to be charged in the killing, police said.
Bailey had been looking into the troubled business affairs of the bakery, which filed for bankruptcy protection last fall, The Los Angeles Times reported.
Your Black Muslim Bakery was founded in the 1960s by Yusef Ali Bey Sr., a charismatic businessman and spiritual leader who died in 2003 amid accusations he had raped female employees. The group he established is not related to the Nation of Islam.