Allbirds is offering all its assets for $39 million.

      The wool sneaker brand that briefly achieved a $4 billion valuation in 2021 has reached an agreement to sell all its assets and intellectual property to American Exchange Group. The company is set to dissolve. After-hours shares surged by 36% as the $39 million sale price presents a premium compared to its previous trading value.

      Allbirds has decided to transfer its intellectual property and assets to American Exchange Group for $39 million, which is about one-tenth of the $348 million it secured during its 2021 IPO, and a small fraction of the over $4 billion valuation it achieved on its initial trading day. The company intends to fully dissolve following the completion of the sale. This transaction requires shareholder approval and is anticipated to finalize in the second quarter of 2026, with net proceeds allocated to shareholders in the third quarter after accounting for wind-down expenses.

      The situation is underscored by a troubling detail: Allbirds’ shares closed at $2.98 on Monday, leading to a market cap of approximately $24.5 million. The $39 million sale price is above the current stock value. Following the announcement, shares rose approximately 36% in after-hours trading, reflecting the significant drop in expectations. Revenue has decreased by 22% over the past year to $161 million, while the company reported a negative EBITDA of roughly $75 million.

      By February 2026, Allbirds had shut down all of its full-price stores in the U.S., keeping only two locations in the UK and two outlet stores in the U.S. The downfall of Allbirds serves as a familiar cautionary tale about the risks involved when a brand, which originated from a single product concept—the Wool Runner, a $95 sneaker made from Merino wool that Time magazine once deemed “the world’s most comfortable shoes”—attempts to transition into a lifestyle brand.

      After the 2021 IPO, Allbirds aggressively expanded into physical retail and new product lines, including leggings, jackets, and performance running shoes. None of these successfully resonated with the customer base that had initially embraced the original product, leading to growing losses. Co-founder Tim Brown later admitted that the expansion had detracted from the company's "DNA."

      American Exchange Group (AXNY), purchasing the brand, is a privately held brand management company that has been in operation for 18 years, specializing in accessories and licensing. Its current portfolio features brands such as Aerosoles, Jonathan Adler, White Mountain, Ed Hardy, and Born, among others. The Allbirds deal was negotiated by a special committee of independent directors and received unanimous approval from the Board. TD Cowen serves as Allbirds’ financial advisor, while Holland & Hart provides legal counsel.