Home / Business and Economy / Allbirds' $4bn Dream Collapses to $39m Sale
Allbirds' $4bn Dream Collapses to $39m Sale
2 Apr
Summary
- Allbirds, once valued at over $4 billion, is being sold for only $39 million.
- Celebrities like Leonardo DiCaprio and Oprah Winfrey were early investors and adopters.
- Sales plummeted, leading to store closures and a dramatic share price drop.
- The company co-founders are Tim Brown and Joey Zwillinger.
Once a celebrated sustainable footwear brand with a valuation exceeding $4 billion, Allbirds is now being sold for $39 million to American Exchange Group, the owner of brands like Ed Hardy.
The San Francisco-based company, co-founded by Tim Brown and Joey Zwillinger, experienced rapid success after its 2016 launch, selling over a million pairs of its original merino wool trainers within two years. Its popularity extended to numerous celebrities, including Leonardo DiCaprio, who invested, and Oprah Winfrey, with even New Zealand's former Prime Minister Jacinda Ardern gifting a pair to Australia's then Prime Minister Scott Morrison.
Despite listing on the Nasdaq in 2021 with significant fanfare, Allbirds' shares have since plummeted by more than 99%, leaving its market valuation significantly diminished. Analysts attribute its initial rise to "Silicon Valley hype" rather than widespread consumer appeal.
Facing intensified competition and a shift in consumer demand, the company saw sales surpass $1 billion but also incurred losses. This led to a significant reduction in its retail footprint, with most of its 20 US stores closing in January, leaving only two in the US and two in the UK open.
The acquisition follows a sharp 23% decrease in third-quarter sales for 2025, amounting to $33 million, and a $20.3 million loss. Allbirds had initially planned to release its full-year results this week but canceled the announcement upon disclosing the deal.
