Allbirds Valued at $4B Fails as It Sells for $39M Amid Decline

Allbirds, the eco-friendly footwear brand once valued at over $4 billion, has agreed to sell its assets to American Exchange Group for $39 million, a steep decline from its peak valuation in 2022, according to Fortune and The Guardian. The decision follows a significant drop in demand for its wool-based shoes and financial difficulties that prompted the company to close all its U.S. retail locations, as reported by TheStreet.

The sale includes Allbirds’ intellectual property, assets, and liabilities, with the board having approved the deal, but shareholder approval is still required before completion, RNZ News and Fast Company note. American Exchange Group, which owns other brands like Ed Hardy and Born, plans to finalize the acquisition in the second quarter of 2026.

Allbirds’ downfall has been attributed to a series of strategic errors, including overexpansion and a failure to adapt to shifting consumer preferences beyond its initial hype-driven market, experts told Fortune. The company aims to focus future efforts on e-commerce, wholesale, and international distribution but will cease reporting quarterly earnings and shift to filing annual reports with the SEC, according to Fast Company.

The outcome signals a strategic pivot and major contraction for the environmentally focused company, which started in New Zealand and found early success in Silicon Valley. With the sale pending final approvals, industry observers will be watching to see how American Exchange Group integrates Allbirds into its portfolio and whether the brand can recover in a competitive footwear market.