Allbirds, the San Francisco-based sustainable trainer brand once valued at more than $4bn (£3bn), has been sold for just $39m (£29.6m). The struggling company has been snapped up by American Exchange Group, which owns brands including Ed Hardy and Born.
The brand, co-founded by former New Zealand footballer Tim Brown and engineer Joey Zwillinger, was a darling of Silicon Valley and enjoyed early success with its merino wool trainers. Celebrities such as Leonardo DiCaprio, Oprah Winfrey and Barack Obama were early adopters, and the company listed on the Nasdaq in 2021 with a $4bn valuation.
However, shares tumbled by more than 99% as sales failed to meet expectations. By the third quarter of 2025, sales had fallen 23% year on year to $33m, alongside a $20.3m loss. The company has closed most of its stores, retaining only two UK shops in London and a handful in the US.
Neil Saunders, managing director of GlobalData, said: 'Allbirds has gone from being a high flyer to a dead parrot. Its early success was driven by Silicon Valley hype, more than deep popularity with consumers.' Joe Vernachio, Allbirds chief executive, insisted the brand would 'thrive in the years ahead' under new ownership.
