Allbirds, known for its wool sneakers popular among Silicon Valley, has agreed to sell its assets and intellectual property to American Exchange Group for $39 million. This sale is about one-tenth of the $348 million raised during its 2021 IPO and far less than the over $4 billion valuation it reached on its first trading day.
The transaction awaits shareholder approval and is anticipated to close in the second quarter, with stockholders receiving proceeds in the third quarter. Following the announcement, shares rose 36% in after-hours trading. The stock ended Monday at $2.98, giving Allbirds a market cap of $24.5 million, indicating the $39 million sale price was an actual premium over its current trading value.
The decline of the 11-year-old company has been noted. Post-IPO, Allbirds expanded into physical stores and other product categories like leggings, jackets, and running shoes, which did not appeal to its main audience. This led to losses; co-founder Tim Brown later acknowledged the rapid expansion sacrificed “some of our DNA.“
American Exchange Group is an 18-year-old privately owned brand management firm that also manages brands like Aerosoles and Jonathan Adler.