Allbirds: From $4 billion valuation to $39 million sale

Footwear tends to have its “in” moment: Remember the green Adidas Sambas everyone was wearing a couple years ago? What about Converse’s seemingly ubiquitous Chuck Taylor All Star?

Sustainable footwear brand Allbirds falls into that group, but the once high-flying company is changing hands amid plummeting sales and a pressured consumer. Its assets and intellectual property are being acquired for $39 million by American Exchange Group, owner of brands like Ed Hardy, Aerosoles, and Jones New York. That figure represents a drop in the bucket compared to the $4 billion valuation Allbirds commanded after its 2021 IPO (raising $348 million), but is actually a premium to its current market value of around $22 million.

Expansion team: The pressure to scale is an inevitable chapter for many successful businesses (especially after multiple funding rounds, including one for $100 million during the pandemic). Following its public listing, Allbirds expanded its brick-and-mortar presence and moved into apparel, a strategy that largely backfired. It then attempted an eleventh-hour U-turn back to e-commerce as losses piled up. In February, it announced the closure of all its full-price US retail locations.

In a Fortune interview last year, co-founder and former co-CEO Tim Brown said of the quick acceleration: “The time we had to evolve and grow that story was compressed in such an intense way. With the rapid success that came our way, we lost some of our DNA.”

Brown stepped down from his co-CEO role in May 2023, followed by co-CEO Joey Zwillinger in 2024.

Numbers don’t lie: In its Q3 2025 earnings report, Allbirds reported net revenue of $33 million, a 23.3% YoY decrease. The brand also had a net loss of $20.3 million and an adjusted EBITDA loss of $15.7 million.

“Our teams are focused on accelerating progress under our turnaround in the quarters ahead,” CEO Joe Vernachio said in a statement at the time. “At the same time, we are taking definitive steps to further reduce costs, enhance liquidity, and pursue value-creating opportunities.”

Flying on: The sale still requires approval from common stockholders—and Allbirds plans to request it by April 24—to complete the sale in the second quarter. The company will no longer release quarterly earnings reports, but will file a 2025 annual report (10-K) with the SEC.