A shoe company founded by a former All Whites star has been sold after a difficult period where its value shrank by billions of dollars.
The sustainable footwear brand was founded by ex-All White Tim Brown, and its products – marketed as easy-to-wear wool shoes – were worn by the likes of former US President Barack Obama, Hollywood star Leonardo DiCaprio, and Silicon Valley executives.
In a statement, All Birds said it had entered into an agreement with the New York-based, privately held American Exchange Group, which specialises in buying undervalued jewellery, lifestyle and footwear brands and rebooting them. The sale was for US$39 million (NZ$67.8 million).
The group would acquire "all of the intellectual property and certain other assets and liabilities of Allbirds", subject to finalisation of purchase price adjustments at closing.
Allbirds said the sale was negotiated by a committee of independent directors and received "unanimous approval" by the company's board of directors.
The sale was expected to close in the second quarter of 2026, with a distribution to shareholders of the net proceeds, taking into account wind-down expenses, anticipated in the third quarter of 2026.
"We are incredibly thankful to our teams for the work they have been doing to fuel our product engine, build awareness of Allbirds and deliver an engaging customer experience," Allbirds CEO Joe Vernachio said.
"Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort.
"This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
The company reached a peak market value of US$4.1 billion on the day of its initial public offering on the Nasdaq in November 2021. Since then, its shares have lost 99.5% of their value.
According to Bloomberg, Allbirds' stock crashed within months, with stock closing at US$2.98 (NZ$5.19) on Monday, giving it a market value of $24.5 million (NZ$42.64 million).
After selling three million pairs of shoes in 2022, Allbirds struggled due to supply chain issues. The New York Times claimed it had fallen out of fashion, and its design was mimicked by others.
Brown quit as co-CEO in May 2023, but remained a director. He started the company in 2014, teaming up with San Francisco biotech engineer Joey Zwillinger to design shoes using New Zealand merino wool.
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