Another California-based company is packing up and heading to the Lone Star State. Digital Brands Group, an apparel and e-commerce firm, announced it will relocate its corporate headquarters to Round Rock, Texas, with its CEO offering a blunt explanation for the move.
âDoing business in the state of California sucks,â Hil Davis, CEO of Digital Brands Group, told Fox News Digital, according to a report from The Gateway Pundit.
The move, announced by the Round Rock Chamber in a press release, is described as a significant win for economic development in the Central Texas city. The company, founded in California and known for blending apparel brands with e-commerce technology and data-driven consumer solutions, is the latest in a string of businesses choosing Texas over the Golden State.
A Business-Friendly Alternative
Davis said the company is thankful to move to Texas, a state he called âbusiness-friendly,â and he emphasized the differences between the two states’ operating environments. The cost of business is âsignificantly betterâ in Texas, he said, while employees also benefit from a higher quality of life and a lower cost of living.
âWe are excited to build our corporate headquarters in Round Rock, especially as we move into our next phase of growth,â Davis added.
The company plans to begin operations in 47,611 square feet of space and will expand to 70,300 square feet after 12 months, according to the press release. Digital Brands Group anticipates employing more than 30 people initially, with substantial job growth expected after the first year.
Jordan Robinson, president and CEO of the Round Rock Chamber, welcomed the company’s decision, calling it another example of an innovative business choosing the city for long-term growth. âTheir decision to relocate their HQ here underscores Texasâ reputation as a prime destination for tech-enabled, forward-thinking businesses,â Robinson said.
Why Leave California?
Davis cited California’s high cost of living, long employee commutes, and the rising cost of doing businessâincluding defending against lawsuitsâas key factors in the relocation decision.
âYou start to add all those things up,â he said. âIt doesnât work. It doesnât make sense. Itâs too hard.â
The departure comes as California grapples with a broader question about whether its taxes, regulations, and overall costs are pushing businesses and wealthy residents to leave. That debate has intensified recently, with the state considering a one-time tax of up to 5% on Californians worth more than $1 billion.
Digital Brands Group’s move is part of a larger pattern of companies relocating from blue states to red states, particularly Texas, which has no state income tax and what supporters describe as a more predictable regulatory environment. Critics of such moves argue that California’s higher taxes fund essential public services and that the state’s economy remains robust despite the departures.
But for Davis, the decision was pragmatic. He said the accumulation of costs and challenges made staying in California untenable. The company’s new home in Round Rock, a suburb of Austin, places it in a region that has become a tech and innovation hub, drawing businesses from across the country.
The Round Rock Chamber framed the relocation as a sign of the city’s growing appeal. âThe companyâs move reflects the accelerating trend of growth-oriented companies choosing Texas for its business-friendly environment, skilled workforce, and strategic position in Central Texas,â the press release stated.
Digital Brands Group joins a long list of companies that have moved their headquarters or major operations to Texas in recent years, a trend that shows no signs of slowing as states compete for jobs and investment.
Source: www.thegatewaypundit.com â https://www.thegatewaypundit.com/2026/08/another-company-flees-ca-red-state-doing-business/