The wool sneaker brand, which briefly reached a valuation of $4 billion in 2021, has agreed to sell all of its assets and intellectual property rights to American Exchange Group.
The company dissolves. Shares rose 36% in after-hours trading as $39 million is still a premium to the already trading price.
Allbirds has agreed to sell all of its intellectual property and assets to American Exchange Group for $39 million, about a tenth of the $348 million the company raised in its 2021 initial public offering and a fraction of the more than $4 billion valuation the company briefly reached on its first day of trading.
The company plans to completely dissolve after the transaction is completed. The sale, which is subject to shareholder approval, is expected to close in the second quarter of 2026, with net proceeds distributed to shareholders in the third quarter after accounting for settlement costs.
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Compounding the murky deal is one detail: Allbirds shares closed at $2.98 on Monday, giving the company a market capitalization of about $24.5 million. The sale price of $39 million was a premium to the stock’s existing inventory.
Shares rose about 36% in after-hours trading on the news, a measure of how far expectations had already fallen. Revenue was down 22% to $161 million in the last twelve months; The company reported negative EBITDA of approximately $75 million.
Allbirds had also closed all full-price stores in the US by February 2026, retaining only two stores in the UK and two outlet locations in the US.
The demise of Allbirds is a familiar cautionary tale about what happens when a brand based on a unique product idea, the Wool Runner, a $95 Merino wool sneaker that Time magazine once called “the most comfortable shoes in the world,” tries to become a lifestyle company.
After its IPO in 2021, Allbirds aggressively expanded into physical retail and new product categories: leggings, jackets, performance running shoes. None of them had any connection to the customer base that purchased the original product. Losses were piling up.
Co-founder Tim Brown later acknowledged that the expansion had cost the company “some of our DNA.”
American Exchange Group (AXNY), which is acquiring the brand, is an 18-year-old private brand management company in the accessories and licensing space. His existing portfolio includes Aerosoles, Jonathan Adler, White Mountain, Ed Hardy and Born, among others.
The Allbirds deal was negotiated by a special committee of independent directors and received unanimous board approval. TD Cowen serves as financial advisor to Allbirds; Holland & Hart is legal counsel.
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