American Exchange Group Acquires Allbirds for $39 Million After 99% Value Decline

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3.31.2026

Quick Facts

American Exchange Group agreed to acquire Allbirds’ intellectual property and assets for $39 million, down 99% from its $4 billion 2021 IPO valuation
Allbirds quarterly revenue fell 23.3% year-over-year to $33 million in November 2025, with declining revenue every quarter since 2022
The company closed nearly all retail locations, dropping from over 50 stores worldwide in 2022 to just four remaining stores by early 2026

American Exchange Group will acquire Allbirds’ intellectual property and certain assets for $39 million in a transaction expected to close in the second quarter of 2026.

The deal represents a dramatic fall from grace for the sustainable footwear brand that debuted on public markets in 2021 with a valuation of approximately $4 billion. Allbirds shares surged 32% to $3.92 in extended trading following the March 30 announcement.

Allbirds has struggled with consistent revenue declines since 2022. The company reported quarterly net revenue of $33 million in November 2025, down 23.3% year-over-year. Revenue for the first nine months of 2025 dropped 21.7% to $104.8 million compared to $133.9 million in 2024.

The company’s financial distress became evident through aggressive store closures. Allbirds reduced its retail footprint from over 50 locations worldwide in 2022 to just 23 by September 2025. By February 2026, the company closed all remaining full-price U.S. stores, keeping only two outlet locations in the U.S. and two full-price stores in London.

“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” said CEO Joe Vernachio. “By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

American Exchange Group CEO Alen Mamrout said the acquisition aligns with the company’s expansion into fashion and apparel. “The brand’s strong identity and loyal customer base align seamlessly with our strategic vision,” Mamrout stated.

American Exchange Group has built a portfolio including Aerosoles, Ed Hardy, Born and Jonathan Adler. The company reported revenue of $370.3 million and recently acquired VENUS fashion brand in August 2025 and skincare brand Urban Skin Rx in January 2025.

As of September 30, 2025, Allbirds held $23.7 million in cash with $12.3 million in outstanding borrowings under its $50 million credit facility. The company’s Altman Z-Score of -6.54 placed it in the distress zone, indicating high bankruptcy risk.

The transaction highlights broader challenges facing direct-to-consumer brands that expanded rapidly but later struggled with profitability and scale as investor focus shifted from growth to sustainable margins.

Allbirds stockholders must approve the asset sale and subsequent company dissolution. A proxy statement is expected by April 24, 2026, with net proceeds distributed to shareholders in the third quarter.