Allbirds, Once Valued at $4B, Sells for Just $39M

The onetime darling of tech workers' feet was just purchased for a song. Allbirds, which IPOed in 2021 and hit a valuation of around $4 billion after its first day of trading, on Monday said it has agreed to sell its remaining assets for $39 million, reports Marketwatch. The buyer is brand management firm American Exchange Group, which the Wall Street Journal reports has brands including Ed Hardy and Aerosoles in its portfolio. The New York Times reports the sale caps a steep fall for a company once held up as the model for direct-to-consumer start-ups like Warby Parker and Casper.

Analysts say Allbirds' signature Merino wool sneaker remained its only real hit as expansion into apparel, new shoe materials, and a growing store network failed to catch on beyond its early Silicon Valley fan base. Allbirds never turned a profit post-IPO, shut all but two outlet stores in the US, saw sales drop almost 20% last year, and reported a $77 million net loss for the year. The Times reports that shoes by On, Hoka, and Common Projects are what Silicon Valley tech workers are now flocking to. The deal, which requires shareholder approval, is expected to close in Q2.