Allbirds is offering all of its assets for $39 million.

      The wool sneaker brand that briefly reached a $4 billion valuation in 2021 has agreed to sell all its assets and intellectual property to American Exchange Group. The company is set to dissolve. Shares surged 36% in after-hours trading due to the $39 million deal being a premium compared to their previous trading price.

      Allbirds has consented to transfer its intellectual property and assets to American Exchange Group for $39 million, which is roughly one-tenth of the $348 million raised during its 2021 IPO, and a small fraction of the over $4 billion valuation it briefly achieved on its first trading day. The company intends to fully dissolve once the sale is finalized. The deal, which requires shareholder approval, is anticipated to conclude in the second quarter of 2026, with net proceeds distributed to shareholders in the third quarter after covering wind-down expenses.

      The situation is underscored by a concerning detail: Allbirds’ shares closed at $2.98 on Monday, giving the company a market capitalization of approximately $24.5 million. The $39 million sale price represented a premium over the stock’s value at that time. Following the announcement, shares rose around 36% in after-hours trading, reflecting how significantly expectations had declined. Revenue fell by 22% over the past year to $161 million, and the company posted a negative EBITDA of around $75 million.

      By February 2026, Allbirds had also shut down all its US full-price stores, maintaining only two locations in the UK and two outlet stores in the US. The decline of Allbirds serves as a familiar cautionary tale about the pitfalls of a brand, initially focused on a single product—the Wool Runner, a $95 Merino wool sneaker that Time magazine once dubbed “the world’s most comfortable shoes”—attempting to evolve into a lifestyle brand.

      After its 2021 IPO, Allbirds aggressively expanded into physical retail and ventured into new product lines, including leggings, jackets, and performance running shoes. However, none of these resonated with the customer base that had originally supported the brand. Consequently, losses mounted. Co-founder Tim Brown later admitted that the expansion had resulted in the loss of “some of our DNA.”

      American Exchange Group (AXNY), which is acquiring Allbirds, is an 18-year-old privately held brand management company focused on accessories and licensing. Its existing portfolio includes brands like Aerosoles, Jonathan Adler, White Mountain, Ed Hardy, and Born, among others.

      The Allbirds acquisition was negotiated by a special committee of independent directors and received unanimous approval from the Board. TD Cowen is serving as Allbirds’ financial advisor, and Holland & Hart is providing legal counsel.