OAN Staff Addie Davis
11:00 AM – Monday, August 17, 2026
Digital Brands Group (DBG), an e-commerce and apparel business, packed up its headquarters in Los Angeles to relocate to Round Rock, Texas, just north of Austin.
Hil Davis, the CEO of DBG, voiced frustration over the business environment in the Golden State, noting the high costs for the company, which was located about five miles south of Los Angeles.
“Doing business in the state of California sucks,” Davis expressed to Fox News.
Speaking to the outlet, he blamed high operational costs, lengthy employee commutes and the burden of defending against lawsuits.
“You start to add all those things up,” Davis continued. “It doesn’t work. It doesn’t make sense. It’s too hard.”
Meanwhile, 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.
“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,” the chamber said in an early February release.
“We are thankful to move to Texas, a business-friendly state, from California,” Davis said, according to the release. “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.”
Though DBG is uprooting its corporate base, Fox News noted the apparel company isn’t cutting ties with California completely — as it plans to keep select production operations running in L.A.
Still, DBG joins a growing stampede of corporate heavyweights fleeing the state’s economic climate for Texas, following in the footsteps of giants like Chevron, Tesla and SpaceX.
Additionally, the exodus isn’t just corporate; residents are leaving in droves. Citing IRS data, Fox News highlighted that every single California county lost taxpayers to interstate migration between 2022 and 2023. Los Angeles County alone bled more than 17,000 taxpayers in that single window, taking nearly $1.9 billion in adjusted gross income with them.
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