Another California company to flee to Texas amid difficult business environment

The apparel and e-commerce company, which is expanding its sports apparel business, is leasing 70,000 square feet of warehouse and office space in the Texas town.

Published: August 17, 2026 9:52am

Hil Davis, CEO of Digial Brand Group, is relocating the company's headquarters to Round Rock, just north of Austin, citing a difficult business environment. 

The apparel and e-commerce company, which is expanding its sports apparel business, is leasing 70,000 square feet of warehouse and office space in the Texas town. 

"Doing business in the state of California sucks," Davis told Fox News

He said the Texas facility will cost roughly the same as the company's space in Vernon, California, which is about five miles south of Los Angeles, but California's high cost of living, long employee commutes, and rising cost of doing business, which includes defending against lawsuits, is becoming too much for the company. 

According to the latest IRS data, Los Angeles County led the nation in taxpayer losses, with a net 17,496 tax filers moving to other states. Those fleeing taxpayers accounted for nearly $1.9 billion in income. 

 

The Facts Inside Our Reporter's Notebook

Just the News Spotlight

Support Just the News