The wool sneaker brand that reached a temporary $4 billion valuation in 2021 has agreed to transfer all assets and intellectual property to American Exchange Group. The company will dissolve. Shares surged 36% after-hours as $39 million is still a premium over their current trading value.
Allbirds has consented to sell all its intellectual property and assets to American Exchange Group for $39 million, about one-tenth of the $348 million obtained in its 2021 IPO and a small part of the over $4 billion valuation it briefly achieved on its initial trading day. The company intends to fully dissolve after the deal finalizes. This sale, requiring shareholder approval, is slated to complete in the second quarter of 2026, with net proceeds distributed to stockholders in the third quarter after covering wind-down expenses.
The deal’s starkness is highlighted by one fact: Allbirds’ shares closed at $2.98 on Monday, valuing the company around $24.5 million. The $39 million sale price was a premium compared to the existing stock value. Shares increased roughly 36% in after-hours trading following the announcement, showing how much expectations had already decreased. Revenue had dropped 22% over the last twelve months to $161 million; the company was experiencing a negative EBITDA of about $75 million.
Allbirds also closed all its US full-price shops by February 2026, keeping only two UK stores and two US outlet locations.
Allbirds’ decline serves as a cautionary tale of what ensues when a brand founded on a single product concept, the Wool Runner—a $95 sneaker made from Merino wool once deemed “the world’s most comfortable shoes” by Time magazine—attempts to evolve into a lifestyle company. Post its 2021 IPO, Allbirds expanded vigorously into physical retail and new product categories: leggings, jackets, performance running shoes. None resonated with the customer base initially attracted by the original product, leading to mounting losses.
Co-founder Tim Brown later confessed the expansion cost the company “some of our DNA.”
American Exchange Group (AXNY), acquiring the brand, is an 18-year-old privately held brand management entity in the accessories and licensing domain. Its current portfolio includes Aerosoles, Jonathan Adler, White Mountain, Ed Hardy, and Born.
The Allbirds transaction was orchestrated by an independent directors’ special committee and obtained unanimous Board approval. TD Cowen is functioning as Allbirds’ financial advisor; Holland & Hart serves as legal counsel.