Allbirds, the wool sneaker brand that became an unofficial uniform in Silicon Valley, has agreed to sell all of its assets and intellectual property to American Exchange Group for $39 million. This sale price is roughly one-tenth of the $348 million the company raised in its 2021 initial public offering. It is also a fraction of the more than $4 billion valuation it briefly held on its first day of trading.
The deal still requires shareholder approval and is expected to close in the second quarter. Proceeds will be distributed to stockholders sometime in the third quarter. Following the announcement, shares jumped 36% in after-hours trading. The stock had closed the previous day at $2.98, giving the company a market capitalization of $24.5 million. This means the $39 million sale price represented a premium over the company’s trading value.
The 11-year-old brand’s decline has been well-documented. After going public, Allbirds expanded aggressively into physical retail stores and new product categories like leggings, jackets, and performance running shoes. These moves failed to connect with its core customers. Losses accumulated as a result, and co-founder Tim Brown later admitted the rapid growth had cost the company some of its essential identity.
American Exchange Group is a privately held, 18-year-old brand management firm. It is a portfolio company that also owns the brands Aerosoles and Jonathan Adler.