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A California CEO Said Doing Business There “Sucks” So He Left for Texas

by Morgan G. Murphy
August 18, 2026
in News, Original
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Hil Davis did not issue a carefully sanded statement about “headwinds.” He told Fox News Digital the truth in one blunt sentence.

Doing business in the state of California sucks.

Then he moved the company.

Advisor Bullion Numismatics

Davis is CEO of Digital Brands Group, an apparel and e-commerce firm listed as DBGI. The headquarters sat in Vernon, a few miles south of Los Angeles. It now sits in Round Rock, just north of Austin, more than 1,300 miles away. The Texas building is about 70,000 square feet of warehouse and office space as the company pushes deeper into collegiate sports apparel. Davis said the rent is roughly the same as what they paid in California.

Same money. Different country, for practical purposes.

Rent was never the whole indictment. California piles cost on cost until a grown man running a real business finally does the arithmetic. High cost of living. Workers burned by long commutes. A legal culture that treats a company like a piñata.

Permits, taxes, and a political class that talks about “equity” while chasing the people who sign the paychecks. Just the News recorded the same verdict Davis gave Fox. Add it up, he said, and the whole thing collapses.

You start to add all those things up. It doesn’t work. It doesn’t make sense. It’s too hard.

That is not a vibe. That is a balance sheet talking.

People Are Already Voting With the U-Haul

Sacramento still sells the weather and the myth. The IRS is selling something colder. The latest IRS migration numbers show Los Angeles County led the nation in taxpayer flight, a net loss of 17,496 filers who took nearly $1.9 billion in income with them. Orange County lost 11,618. San Diego lost 9,401. Riverside lost 8,968. San Bernardino lost 8,462.

Those are not tourists. Those are the households and businesses that fund schools, cops, and roads. When they leave, the tax base shrinks and the politicians reach for whoever is still standing. Heritage Foundation chief economist E.J. Antoni put it without poetry. People vote with their feet when they are taxed too much.

Davis is not predicting a Hollywood explosion. He expects a drip.

I don’t know if there’ll be, like, an explosion. I just think it’ll be a constant leak.

A leak is how a house rots. Slow enough that the people in charge can keep giving speeches while the floor gives way.

Scripture is not confused about this kind of vanity. “For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?”

California’s rulers keep stacking new towers of spending and control. They refuse to count the cost. Then they act shocked when a builder walks off the job.

Texas Did Not Have to Beg

Round Rock did not win this with a slogan. It offered a place where work is not treated as a moral defect. Lower operating costs. A central shipping point for a company that serves campuses across the country. Access to Austin’s workforce. Faster permission to build. Davis has said Texas is simply better for the operating environment, and better for the people on the payroll who would like a life they can afford.

Fighting Marxists

Digital Brands Group is not torching every tie to Los Angeles. Some production stays there. That is the tell. California still has talent and a fashion bench that is hard to copy overnight. Silicon Valley and Hollywood remain magnets.

Davis admitted those centers of gravity are real. They are also not a hall pass for bad government. Tesla, Oracle, and Chevron already made their own versions of this decision. The Texas Comptroller has counted more than 150 California companies that moved headquarters to the Lone Star State over a recent decade. Davis is another name on a list Sacramento pretends not to see.

Now the same state that cannot keep its taxpayers wants to hunt the ones who remain. California is advancing a one-time tax of up to 5 percent on residents worth more than $1 billion, sold as a compassion project for health care and public programs.

Opponents warn it will shove more wealth and investment out the door. Mark Cuban has already said the scheme could send startups and capital elsewhere. Supporters talk as if the rich are livestock. History says livestock that can walk, will.

There is a Christian word for punishing the fruit of labor and then demanding more fruit. Folly. A state that makes honest enterprise “too hard” should not be surprised when the enterprise leaves. Davis counted the cost. California’s political class is still pretending the leak is rain.

At last, a conservative news aggregator that does not bow to the woke right.





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Tags: BusinessCaliforniaEconomyLedeTexasTop Story

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