Allbirds to be sold for $39 million

Allbirds, the footwear brand that went public in 2021, will be sold for $39 million to a new owner, the company announced on March 30.

The board of directors at the former rising star among direct-to-consumer brands unanimously approved the deal. If the deal proceeds, it will see American Exchange Group acquire Allbirds’ intellectual property, along with other assets and liabilities.

Allbirds is No. 477 in the Top 2000. The database is Digital Commerce 360’s ranking of the largest North American online retailers. Digital Commerce 360 categorizes Allbirds as an Apparel & Accessories retailer.

Why Allbirds is being sold

Subject to the approval of Allbirds shareholders, the company’s sale would follow a turning point in January when Allbirds announced it would close stores and refocus on ecommerce.

“We are incredibly thankful to our teams for the work they have been doing to fuel our product engine, build awareness of Allbirds and deliver an engaging customer experience,” said Joe Vernachio, CEO at Allbirds, in a released statement. “Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort.”

Prior to its 2021 public offering, Allbirds had been valued at $7.1 billion. However, as it expanded into physical stores with new lines of apparel and footwear, its share price fell by more than 99%. Ultimately, it dropped to a point where its market cap dipped below $25 million.

“This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead,” Vernachio said.

Allbirds’ new owner

Allbirds expects the transaction to close sometime in the second quarter of 2026, according to its public announcement. American Exchange Group’s portfolio of brands already includes a range of consumer brands, such as Aerosoles, Ed Hardy and Mudd.

As it made the announcement, Allbirds canceled the earnings call for its fiscal fourth quarter. It anticipates that a proxy statement seeking shareholder approval for the deal would be filed by April 24. A winding down of the company would follow.

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