Hil Davis moves Digital Brands Group headquarters to Texas to escape California's high operating costs
Hil Davis, CEO of Digital Brands Group, has relocated the company's headquarters from California to Round Rock, Texas. The move was driven by the challenging business environment in California, which Davis described as difficult due to high costs of living, long employee commutes, and the rising expenses of doing business, including legal fees. While the new Texas facility costs approximately the same as the former California space, Davis noted that Texas offers lower operating costs, a more central shipping location for collegiate sports apparel, and access to the creative workforce in Austin. The relocation occurs as California faces a significant exodus of taxpayers and businesses. Recent IRS data shows Los Angeles County led the nation in taxpayer losses, with nearly $1.9 billion in income moving to other states. The move highlights the ongoing debate over whether California's high taxes and regulations are driving away the wealth and investment it relies on.