Quick Facts
- Allbirds agreed to sell all assets to American Exchange Group for $39 million, roughly one-tenth of its $348 million IPO proceeds
- The company lost $419 million over five years on $1.24 billion in sales and closed all US full-price stores by February 2026
- Shares jumped 36% after-hours despite trading at $2.98, representing a 95% decline from peak values
Allbirds has agreed to sell all of its assets and intellectual property to American Exchange Group for $39 million. The deal marks a dramatic fall for the sustainable footwear company that raised $348 million in its 2021 IPO and briefly commanded a $4 billion valuation.
The $39 million sale price represents roughly one-tenth of what Allbirds raised during its public offering. Shares closed Monday at $2.98, giving the company a market cap of $24.5 million. The sale price actually represents a premium to where shares were trading.
American Exchange Group, which owns brands including Aerosoles, Ed Hardy, and Born, will acquire the sustainable shoe company’s assets. The deal requires shareholder approval and is expected to close in the second quarter.
Allbirds has struggled financially since going public. In the five fiscal years ending December 2024, the company lost $419 million on sales of $1.24 billion. Full-year 2024 revenue decreased 25.3% to $189.8 million compared to $254.1 million in 2023.
The company closed all US full-price stores by February 2026, retaining only two UK stores and two US outlet locations. Allbirds had operated 45 US stores as recently as late 2023 before scaling back to 21 locations.
CEO Joe Vernachio said in a statement: “This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
Allbirds was founded in 2015 by Tim Brown and Joey Zwillinger. The company gained popularity for its $95 wool sneakers, which Time magazine called “the world’s most comfortable shoes.” The brand sold one million pairs in its first two years.
The company’s decline began after its IPO when it expanded aggressively into physical retail and new product categories including leggings, jackets, and performance running shoes. The rapid expansion beyond its core Wool Runner product proved unsuccessful.
Shares have lost more than 95% of their value since going public. The company executed a 1-for-20 reverse stock split in September 2024 to maintain Nasdaq listing compliance after shares fell below $1.
TD Cowen is acting as financial advisor and Holland & Hart LLP as legal counsel to Allbirds. A proxy statement seeking stockholder approval is expected by April 24, 2026.
Read more: Allbirds is selling for $39 million. It raised nearly 10 times that amount in its IPO.