The rise and fall of Allbirds: The sneaker company, once valued at $4 billion, just sold for $39 million

Core Viewpoint - Allbirds, once a popular sustainable footwear brand, has agreed to be acquired by American Exchange Group for $39 million after experiencing significant financial losses and declining sales over the past few years [1][96]. Company Performance - Allbirds reported a quarterly net revenue of $33 million in November 2022, marking a 23.3% decrease from the same period the previous year [2]. - The company has seen a continuous decline in net revenue every quarter since 2022 [2]. - In 2023, Allbirds faced a net loss of $152.5 million for the full year, with sales down 14.7% [86]. Store Operations - As of September 2025, Allbirds operated 23 stores globally, down from over 50 stores at the end of 2022, and planned to close nearly all remaining stores [3]. - The company announced it would close its remaining full-price stores in the US by the end of February 2026, leaving only two discount stores in the US and two full-price stores in London [93]. Historical Context - Allbirds gained popularity through a successful Kickstarter campaign in 2016, raising nearly $120,000 to create a wool running shoe [9]. - The company went public in November 2021, with shares soaring 90% on the first day of trading, giving it a valuation of $4 billion [40]. - However, the stock price fell from $28.64 on its first trading day to under $5 within eight months [56]. Strategic Changes - In early 2023, Allbirds announced a reorganization plan to slow store openings and increase wholesale partnerships, indicating a shift away from its direct-to-consumer model [62][52]. - The company has focused on its best-selling products, such as the Wool Runner and Tree Dasher, while discontinuing underperforming items [73]. Acquisition Details - The acquisition by American Exchange Group is expected to close in the second quarter of 2026, with net proceeds to be distributed to stockholders in the third quarter [96]. - Following the announcement of the sale, Allbirds' stock rose about 24% in after-hours trading to $3.70 per share [97].