Full Breakdown
Digital Brands Group Shifts Headquarters from California to Texas
8/18/2026, 4:27:44 AM
Company Relocates to Round Rock
Digital Brands Group, an apparel and e-commerce firm focused on collegiate sports merchandise, moved its corporate headquarters from Vernon, California (near Los Angeles) to Round Rock, Texas, just north of Austin. The company signed a lease for roughly 70,000 sq ft of combined warehouse and office space, which the CEO says costs about the same as the former California site.
Drivers Behind the Relocation
He added that the cumulative effect of taxes, regulations, and other expenses “doesn’t work… it’s too hard.” The move aligns with a broader debate in California over a proposed one-time tax of up to 5 % on residents whose net worth exceeds $1 billion, a measure opponents warn could accelerate the outflow of wealthy taxpayers.
Scale of the Move and Fiscal Context
IRS data referenced in the report show Los Angeles County led the nation in taxpayer losses, with a net 17,496 filers leaving for other states and taking nearly $1.9 billion in income. Orange County, San Diego County, Riverside County, and San Bernardino County also recorded double-digit thousands of filer departures, each shedding between 8,400 and 11,600 taxpayers. Davis expects the relocation to be a “slow drip” rather than a sudden exodus, noting that the Texas site offers lower operating costs, a central shipping location for nationwide university customers, and quicker permitting.
Official Statements from Hil Davis
Davis emphasized that while the headquarters has moved, the firm will retain some production operations in Los Angeles. He highlighted Round Rock’s “different equation” of lower costs and proximity to Austin’s creative workforce. Davis also acknowledged that some employees may choose to stay in California, reflecting personal ties to the state.
Verbatim Quote
“Doing business in the state of California sucks,” — Hil Davis
