Allbirds to Sell Assets for $39 Million and Dissolve Corporate Operations

Allbirds, the once-celebrated sustainable footwear brand, has signed a definitive agreement to sell its intellectual property and other assets to American Exchange Group for an estimated $39 million. The deal, announced on March 30, 2026, marks the final chapter for the San Francisco-based company. Stockholders are expected to vote on the sale and a subsequent plan to dissolve the business entirely.

The acquisition follows a period of intense financial pressure that saw the brand's valuation plummet from a peak of $4.1 billion at its 2021 IPO. Under the new agreement, AXNY will take over the brand's core identity while Allbirds winds down its remaining operations. Shareholders are anticipated to receive a distribution of the net proceeds during the third quarter of 2026.

This sale comes after Allbirds struggled with significant cash burn and declining consumer interest. In late 2025, the company reported a negative EBITDA of $75 million and expressed doubt about its ability to continue as a going concern. A 1-for-20 reverse stock split in 2024 was not enough to stabilize the company's position on the Nasdaq.

Industry experts point to aggressive over-expansion into apparel and physical retail as primary factors in the company's downfall. By moving away from its core wool footwear and opening expensive storefronts, the brand lost its niche in a crowded market. Competitors like On and Veja also began to erode Allbirds' dominance in the eco-conscious space.

American Exchange Group, led by CEO Alen Mamrout, has a history of acquiring distressed heritage brands to integrate into its global distribution network. The firm's portfolio already includes names like Aerosoles and White Mountain. By adding Allbirds, AXNY gains a globally recognized name without the burden of the original company's retail leases and corporate overhead.

As part of the transition, Allbirds has canceled its fourth-quarter earnings call. The company will instead file its final Annual Report on March 31, 2026. More information regarding the brand and its products can be found at allbirds.com.