Digital Brands Group Moves to Texas After CEO Says, “Doing business in the state of California sucks.”
Digital Brands Group is leaving California and moving its headquarters to Round Rock, Texas. CEO Hil Davis offered a blunt explanation for the decision.
Davis told Fox News Digital, “Doing business in the state of California sucks.”
The Round Rock Chamber announced the relocation in a press release, describing it as a major economic development win for the city.
“Founded in California and known for its innovative approach to blending apparel brands with e-commerce technology and data-driven consumer solutions, Digital Brands Group’s relocation marks a significant win for economic development in Round Rock.”
The chamber also pointed to Texas’ business climate and workforce as reasons companies are choosing the state.
“The company’s move reflects the accelerating trend of growth-oriented companies choosing Texas for its business-friendly environment, skilled workforce, and strategic position in Central Texas.”
Davis said the move should lower business costs while giving employees a better quality of life and a lower cost of living.
“We are thankful to move to Texas, a business-friendly state, from California. We believe the operating environment and cost of business is significantly better, while also creating a higher quality of life and lower cost of living for employees. We are excited to build our corporate headquarters in Round Rock, especially as we move into our next phase of growth,” Davis added.
Digital Brands Group plans to begin operations in 47,611 square feet. After 12 months, the company expects to expand to 70,300 square feet. It anticipates hiring 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 arrival.
“We are thrilled to welcome Digital Brands Group to Round Rock and to witness yet another innovative company choosing our city for long-term growth and success.”
“Their decision to relocate their HQ here underscores Texas’ reputation as a prime destination for tech-enabled, forward-thinking businesses and further strengthens our community’s diverse economic landscape.”
Davis also cited California’s high cost of living, lengthy employee commutes and the rising cost of doing business. He specifically mentioned the burden of defending against lawsuits.
“You start to add all those things up,” he said. “It doesn’t work. It doesn’t make sense. It’s too hard.”
The move comes as California faces broader questions about whether its costs, taxes and regulations are pushing away businesses and wealthy residents. That debate has grown louder around a proposed one-time tax of up to 5% on Californians worth more than $1 billion.