This Californian Shoe Company Was Once Worth Billions. It Just Sold For $39 Million.

Allbirds, an eco-friendly footwear institution that won complete Silicon Valley, was sold a fraction of nan $4 cardinal it was erstwhile worth.

The footwear marque said this week that it is trading each of its assets to American Exchange Group, a marque guidance company, for $39 million. The company, which makes shoes from wool and eucalyptus, attracted young Bay Area consumers and celebrities for its sustainable practices, but has since struggled to find its footing.

Allbirds peaked astatine a $4 cardinal valuation erstwhile it went nationalist successful 2021, but income plummeted not agelong after. The institution made $33 cardinal successful gross successful nan 3rd 4th of 2025, a small much than half of nan $63 cardinal it made for nan aforesaid play successful 2021.

The woody is still awaiting support from shareholders and is expected to adjacent successful nan 2nd 4th of 2026.

The institution canceled an net telephone it had scheduled for Tuesday, and its shares dropped by much than 10% Wednesday.

The institution has evolved complete nan past decade into a marque known for invention and comfort, Joe Vernachio, nan company’s main executive, said successful a statement.

“This adjacent section pinch AXNY builds connected nan foundational activity already completed and sets up nan marque to thrive successful nan years ahead,” Vernachio said.

The brand’s pricey wool shoes were initially embraced by celebrities for illustration Leonardio DiCaprio, who invested successful nan institution successful 2018. However, nan institution grounded to clasp consumers for its different products, including flip-flops pinch sugarcane-based soles and wool leggings.

Allbirds was started astir 2 decades agone successful New Zealand by erstwhile master shot subordinate Tim Brown. The institution went nationalist astatine a clip erstwhile task capitalists were funneling money into direct-to-consumer brands, which some make and waste equipment done their ain websites and stores.

The institution yet abandoned that approach, trading nan merchandise done retailers, but income still tapered out. It had a nett nonaccomplishment of conscionable complete $101 cardinal successful 2022.

Net proceeds from nan waste are expected to beryllium distributed to stockholders successful nan 3rd 4th of 2026, nan institution said.