Allbirds, the once-hyped sustainable trainer brand valued at over $4bn, has been sold for just $39m (£29.6m) to American Exchange Group, the owner of fashion label Ed Hardy and accessories maker Born. The deal marks a dramatic fall for a company that was touted as the future of footwear.
Launched in 2016, Allbirds sold more than 1m pairs of its merino wool trainers within two years, attracting celebrity investors including Leonardo DiCaprio, who called it 'a model for the footwear industry'. Oprah Winfrey, Gwyneth Paltrow and Barack Obama were early adopters.
However, global demand failed to materialise, and shares listed on the Nasdaq in 2021 tumbled by more than 99%, leaving the company valued at just over $20m before the sale. Neil Saunders of GlobalData said: 'Allbirds has gone from being a high flyer to a dead parrot,' adding that its early success was 'driven by Silicon Valley hype, more than deep popularity with consumers'.
The company closed most of its US stores in January, retaining only two of 20, while keeping its two London shops open. Sales in the third quarter of 2025 fell 23% year-on-year to $33m, with a $20.3m loss.
Joe Vernachio, Allbirds CEO, said: 'Over the past decade, Allbirds has evolved into a lifestyle footwear brand... This next chapter builds on the foundational work already completed and sets up the brand to thrive in the years ahead.'
