E-commerce and apparel company Digital Brands Group (DBG) has moved its headquarters from Los Angeles to Round Rock, Texas, located just north of Austin.
CEO Hill Davis expressed his dissatisfaction with California’s business environment, mentioning the high costs faced by the company, which previously operated about eight miles south of Los Angeles.
“Doing business in California is really challenging,” Davis remarked.
He cited various factors contributing to this frustration, including elevated operating expenses, long employee commutes, and the strain of managing legal defenses.
Davis added, “All these things start to add up. It’s just not working. It’s hard to make sense of it all.”
The decision to relocate aligns with a trend of expanding companies favoring Texas for its favorable business environment, skilled labor pool, and strategically advantageous location in Central Texas.
A local chamber noted, “This move signals a rising trend of companies drawn to Texas for its business-friendly policies and resources.”
Davis expressed gratitude for moving to Texas, stating that they anticipate a significant improvement in operating conditions and business costs, along with better quality of life for employees and lower living expenses.
While DBG is moving its corporate hub, it plans to maintain some production operations in Los Angeles, not completely severing ties with California.
DBG’s relocation reflects a larger movement of major corporations, including Chevron and Tesla, exiting California due to its economic challenges. Additionally, many residents are leaving the state; reports show that from 2022 to 2023, every county in California lost taxpayers, with Los Angeles County alone seeing a loss of over 17,000 residents and nearly $1.9 billion in adjusted gross revenue during that time.
