A California apparel company has packed up its headquarters and moved to Texas, with its CEO delivering a blunt verdict on the Golden State's business climate.
"Doing business in the state of California sucks," Hil Davis, CEO of Digital Brands Group, told Fox News Digital.
The company relocated its headquarters more than 1,300 miles to Round Rock, Texas, just north of Austin, where it leased roughly 70,000 square feet of warehouse and office space.
Davis said the Texas facility costs about the same as the company's former location in Vernon, California, despite giving the business more room to expand its collegiate sports apparel operation.
For Davis, though, rent was only part of the problem.
He pointed to California's high cost of living, long employee commutes, rising legal expenses and the broader cost of operating in the state.
"You start to add all those things up," he said. "It doesn't work.