Source: Fox News
Summary
Digital Brands Group, an apparel and e-commerce company, has relocated its headquarters from California to Texas due to the high cost of doing business in the state. The company’s CEO, Hil Davis, cited the high cost of living, long employee commutes, and the rising cost of defending against lawsuits as reasons for the move. The relocation comes as California debates a proposed one-time tax on billionaires, which has sparked concerns that it could drive away businesses and wealthy residents.
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As expected, the matter has reached another stage.
Digital Brands Group’s relocation to Texas is the latest in a series of companies leaving California due to high costs. The company’s CEO, Hil Davis, is blunt about the reasons for the move, citing the high cost of living and doing business in the state. The relocation comes as California debates a proposed one-time tax on billionaires, which has sparked concerns that it could drive away businesses and wealthy residents. The move is seen as a slow leak of taxpayers and businesses from the state. The company will keep some production operations in Los Angeles, but the headquarters will be in Round Rock, Texas. The move is a result of a careful calculation of costs and benefits, with Texas offering lower operating costs and a central shipping location.
It’s a familiar story, with California’s high costs and regulations driving away businesses and residents.
