CEO Hil Davis moves Digital Brands Group from California to Texas, citing costs and regulation

Hil Davis, the CEO of Digital Brands Group, announced that the company has transferred its headquarters from Vernon, California to a large office and warehouse complex in Round Rock, a suburb of Austin. While the Texas lease costs roughly the same as the former California site, Davis explained that the cumulative impact of high living costs, extended commutes, escalating operating expenses and increasing litigation made the Golden State unsustainable for his business.

He praised Texas for offering quicker permitting processes, a strategic shipping hub for collegiate apparel, and a vibrant creative workforce. Gabriela von zur Muehlen of the Texas Association of Business said the state continues to attract firms seeking a lower-tax environment. The relocation adds to a pattern of high-profile exits from California, including moves by Tesla, Chevron and SpaceX, even as the state retains strong tech and entertainment sectors. Some employees will relocate, while others with deep California ties may stay behind.