Digital Brands Group Moves HQ 1,300 Miles to Texas, Leasing 70,000 Square Feet
Updated
Updated · Fox News · Aug 17
Digital Brands Group Moves HQ 1,300 Miles to Texas, Leasing 70,000 Square Feet
3 articles · Updated · Fox News · Aug 17
Summary
Round Rock, Texas, is now home to Digital Brands Group’s headquarters after the apparel and e-commerce company moved from Vernon, California, while expanding its collegiate sports apparel business.
Hil Davis said roughly 70,000 square feet in Texas costs about the same as the former California site, with lower operating costs, shorter commutes, faster permitting and a more central shipping location tipping the decision.
California’s broader outflow framed the move: Los Angeles County alone posted a net loss of 17,496 tax filers in the latest IRS data, taking nearly $1.9 billion in income with them.
The relocation lands as California debates a one-time tax of up to 5% on residents worth more than $1 billion, a proposal critics and Gov. Gavin Newsom warn could push more wealth and investment out.
Davis expects no sudden corporate stampede from California, but a steady "constant leak" even as Silicon Valley and Los Angeles remain hard-to-replace industry hubs.