California Exodus Accelerates — Guess Who Bolted

Businessman adjusting tie with digital glitch effect — Photo: shutterlk / Shutterstock

Another California-born company moved its headquarters to Texas, after its CEO said doing business in California “sucks.”

Story Snapshot

Digital Brands Group is relocating its headquarters to Round Rock, Texas, per the local chamber.
The company leased about 70,000 square feet for office and warehouse space near Austin.
The CEO blamed California’s costs and red tape for the move, echoing a broader shift to Texas.
Studies show Texas keeps gaining firms as California sees steady outflows of headquarters.

Company Confirms Texas Relocation And New Facility

The Round Rock Chamber announced that Digital Brands Group is moving its headquarters to Round Rock, Texas. The chamber identified the business as founded in California and framed the shift as an economic win for the city, confirming the move directly from local officials. Commercial real estate coverage reported the company leased roughly 70,000 square feet at 350 Texas Avenue for combined warehouse and office use, placing the operation just north of Austin in a growing industrial park near major highways.

Local filings signaled the Round Rock buildout before the formal announcement. A project notice with the Texas Department of Licensing and Regulation outlined plans for an office in an EastGroup industrial park, aligning with the address cited in later reports. That paper trail supports a real, on-the-ground relocation, not a press-only claim. Together, the chamber release and filings mark a concrete headquarters shift with square footage, location, and timing that can be verified by public documents.

CEO’s Blunt Rationale: Costs, Rules, And Legal Risk

Chief Executive Officer Hil Davis tied the move to California’s heavy costs and rule burden, using plain language that many owners understand. In a widely shared interview, he said doing business in California “sucks,” pointing to the daily grind of fees, litigation risk, and complex compliance that eats time and money from actual work. Coverage of his remarks linked those frustrations to the decision to relocate to Round Rock, where operating costs and permitting are far leaner than in coastal cities.

Reports also noted the company’s strategy to scale collegiate sports merchandise and compete in a national market from a central hub. Round Rock offers lower industrial rents, easier freight routes, and access to a fast-growing workforce. A regional business outlet tied the Texas lease to the company’s growth push in 2026 and described investor interest that followed the move news, underscoring how site decisions can shift market sentiment when costs and logistics improve.

Pattern: Texas Gains As California Loses Headquarters

Texas has drawn a steady stream of corporate headquarters for more than a decade. A Federal Reserve Bank of Dallas review found California was the largest net exporter of jobs tied to business relocations from 2010 to 2019, with Texas a frequent destination for those positions. A Public Policy Institute of California study reported that 789 headquarters left California on net from 2011 to 2021, a small share of the state’s total but a persistent outflow that adds up year after year.

State development officials in Texas reported the post-2021 momentum continued. A 2025 summary from the Texas governor’s office said relocations remained steady after the early 2020s spike, extending a long line of companies choosing Texas for taxes, regulation, and costs that support growth. The agency presented the trend as stable, not a one-off surge, with firms moving both large and small operations into the state’s biggest metros.

What It Means For Workers, Families, And Local Budgets

Headquarters decisions set where hiring, payroll taxes, and community giving land. When companies exit high-cost states, jobs and investment follow to places that protect enterprise and reward hard work. Texas communities like Round Rock capture those gains when they keep energy affordable, cut red tape, and treat businesses as partners, not targets. That is why local leaders cheer these moves and tie them to better schools, safer streets, and real opportunity for families over the long term.

Another Company Flees CA for Red State-“Doing business in the state of California sucks”

Hil Davis, the CEO of Digital Brands Group based in California, shared his blunt reasoning for moving his company’s headquarters to Round Rock, Texas. Davis told Fox News Digital, “Doing… pic.twitter.com/GBJMSlYUFi

— Texas_4_Trump-Kenny (@TexasTrump2024) August 17, 2026

California still holds many headquarters, and some analysts say it remains competitive. But owners vote with their feet when costs, lawsuits, and long waits for permits make growth hard. This relocation shows the choice in real time: a leaner, lawful path that respects free enterprise, or a maze that punishes it. The Texas model keeps winning that choice. Expect more mid-size firms to follow Digital Brands Group if leaders in blue states do not reverse course on taxes and regulation.