Allbirds, the San Francisco sustainable trainer brand once valued at more than $4bn, is being sold for just $39m (£29.6m) after global demand for its wool-based footwear failed to materialise.
American Exchange Group, the owner of a string of brands including the fashion label Ed Hardy and the accessories maker Born, is snapping up the struggling company once touted as the future of footwear.
Allbirds listed on the US stock market in 2021, but its shares have since tumbled by more than 99%, leaving it valued at just over $20m.
In its early years, the brand enjoyed rapid success, and in the first two years since its official launch in March 2016, Allbirds sold more than 1m pairs of its original merino wool trainers. Celebrities flocked to the brand, and Leonardo DiCaprio invested in the companycalling it “a model for the footwear industry”. Oprah Winfrey, Gwyneth Paltrow and Barack Obama were early adopters, and the former New Zealand prime minister Jacinda Ardern even gave a pair to Australia’s then prime minister, Scott Morrison, during a state visit.
Neil Saunders, the managing director of the consultancy and market analysis firm GlobalData said: “Allbirds has gone from being a high flyer to a dead parrot.” He said its early success “was driven by Silicon Valley hype, more than deep popularity with consumers in the American hinterland”.
The company was co-founded by the former New Zealand footballer Tim Brown and the engineer and renewables expert Joey Zwillinger. It shot to prominence amid growing interest in sustainable fashion and in selling brands direct to consumers online.
Allbirds launched on the Nasdaq stock exchange five years ago with a $4bn valuation, opening dozens of stores and expanding into a wide array of clothing.
Although sales eventually surpassed $1bn, the company slipped into losses as it opened stores around the world and competition intensified from eco-focused rivals such as Veja and the Swiss sports brand On.
In January, Allbirds announced the closure of all but two of its remaining 20 US stores, while keeping its two UK shops in London open. The company has been steadily closing stores since 2023, when it operated about 60 worldwide.
The takeover follows a sharp fall in sales in the third quarter of 2025, down 23% on the year before to $33m, alongside a $20.3m loss. Allbirds had been due to publish full-year results this week but cancelled the announcement as it disclosed the deal with American Exchange.
Joe Vernachio, the chief executive of Allbirds, said: “Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort.
“This next chapter … builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
