Allbirds is selling for $39 million. It raised nearly 10 times that amount in its IPO.
TechCrunch • • business
Key Points:
- Allbirds has agreed to sell all its assets and intellectual property to American Exchange Group for $39 million, significantly lower than its $348 million raised in its 2021 IPO and its peak valuation of over $4 billion.
- The sale requires shareholder approval and is expected to close in the second quarter, with proceeds distributed to stockholders in the third quarter; shares rose 36% in after-hours trading following the announcement.
- The brand's decline followed aggressive expansion into physical retail and new product categories that failed to resonate with core customers, leading to mounting losses and a departure from its original brand identity.
- American Exchange Group, the buyer, is a privately held brand management firm owning other brands like Aerosoles and Jonathan Adler.
