What happened to Allbirds?
AllBirds Inc. was valued at $4 billion less than five years ago. Now, it will be sold for just $39 million.
The shoe company on Monday announced a definitive agreement with American Exchange Group (AXNY), which involves selling all of its intellectual property, assets, and liabilities.
Privately held AXNY owns a number of brands, including Aerosoles, Ed Hardy, and Jonathan Adler.
“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,” Allbirds CEO Joe Vernachio said in a statement.
The sale has already been approved by Allbirds’ board of directors, but still requires the go ahead from the company’s common stockholders.
Allbirds plans to file its request for stockholder approval by April 24, complete the transaction in the second quarter, and distribute a yet-to-be-determined amount of net proceeds to stockholders in the third quarter.
Vernachio continued: “Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort. This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
What’s next for Allbirds on the Nasdaq?
The company will no longer release its quarterly earnings press release or hold a related call on Tuesday, March 31. Instead, Allbirds will solely file its 2025 annual report with the U.S. Securities and Exchange Commission (SEC).
On Monday, shares of Allbirds (Nasdaq: BIRD) closed 6.29% down. Following the sale announcement, shares rose more than 20% in after-hours trading. In Tuesday’s premarket, shares of Allbirds were still up more than 17%.
Allbirds stock cratered post-COVID, and never really recovered. In 2024, the company had to do a reverse stock split (1-for-20) in order to keep Nasdaq’s minimum bid price and avoid delisting.
How did Allbirds fall so far?
Allbirds was a phenomenon in 2021 when it made its $4 billion IPO. Founded in 2015, the company promised—and delivered—comfortable shoes for everyone.
But, it also tried to expand into apparel, finding less success in that market. Allbirds has also faced the same problems that many apparel and retail brands face: reduced foot traffic and tighter purse strings.
In 2023 cofounder Tim Brown stepped down as co-CEO. His partner Joey Zwillinger followed suit the following year.
Vernachio took on the role of CEO after holding the position of COO since 2021. Store closures accompanied the change. In January, Allbirds announced that it would shutter almost all of its brick-and-mortar stores.
Allbirds has recently been funding its operations, in part, through borrowings in its credit agreement.
In 2025, the company had a net loss of $77.3 million and used $55.1 million in net cash for operating activities. At the end of the year, Allbirds had $26.7 million between its cash and cash equivalents, with $17.4 million outstanding in its credit agreement.
In an SEC filing, the company said it “does not expect to continue its operations” once the sale is complete.
