Apparel and Hair Companies Latest to Leave California

Apparel company Kellwood and hair care product giant Paul Mitchell are the latest companies to flee California and relocate their headquarters to red states.

Kellwood just purchased a 19-story office building in downtown Phoenix for $17.1 million, L.A. Business First reported. And, John Paul Mitchell Systems will be moving its headquarters to Wilmer, Texas, about 20 miles south of downtown Dallas, per L.A. Business First.

Founded in 1961, Kellwood counts clothing labels like Jolt, Wit & Wisdom and Briggs among its brands and works with retail partners like Target, Nordstrom, Kohl’s, Dillard’s and Costco. Located at 111 West Monroe Street, The Monroe building, where Kellwood will settle, was renovated in 2019 and counts retail, a fitness center and tenant lounge area among its amenities.

Kellwood is preparing to begin renovations at its new 256,682-square-foot digs in Phoenix this summer. It will leave its City of Industry HQ with the first round of staff relocations starting next year, according to L.A. Business First. After that, employees will move in phases over the next few years with the goal of being totally operational in Phoenix by 2030.

John Paul Mitchell Systems, owned by Austin billionaire John Paul DeJoria, will be moving from Beverly Hills to the Dallas-Fort Worth metroplex at an undisclosed address in Wilmer. The hair care-focused company makes products under brands like Tea Tree, Neuro and the ubiquitous Paul Mitchell label. DeJoria also counts Patrón Spirits Company among his creations.

The corporation plans to build a new global product distribution center in addition to the new headquarters. It’s expected to create 80 new jobs across the properties.

Kellwood’s and John Paul Mitchell Systems’ moves mark the latest corporate withdrawals from The Golden State. The Dallas-Fort Worth area in particular leads the country in new corporate headquarters locations, according to the Dallas Business Journal.

One of the most high-profile exits in recent years was Elon Musk’s relocation of his Tesla, X and SpaceX company operations to Texas. Tesla is now headquartered in Austin and X is headquartered in Bastrop, about 30 miles east of Austin. SpaceX’s headquarters remains in Hawthorne, California, though its launch operations are centered around Starbase, Texas, northeast of Brownsville.

Along with companies, some Angelenos displaced by the Palisades and Eaton fires in January have been relocating to The Lone Star State. — Chris Malone Méndez