Allbirds Seeks Soft Landing With IP Sale

The latest chapter in the Allbirds saga reflects the challenges associated with being – and staying  – “the latest hot thing” in retail. The once-high flying brand just announced that it has entered into a definitive agreement to sell its intellectual property and other assets/liabilities to brand-builder American Exchange Group for $39 million – or less than a tenth of what it raised during its IPO just five years ago.

In its coverage of the news, TechCrunch noted that the 11-year-old San Francisco-based company’s wool sneaker brand was at one time “a kind of unofficial uniform for the Silicon Valley set.” But in recent years, TC reported, “the brand expanded aggressively into physical retail and adjacent product categories — leggings, jackets, performance running shoes — that didn’t connect with its core customers. Losses stacked up as a result; co-founder Tim Brown later admitted the rapid growth had cost the company ‘some of our DNA.’”

As recently as 2023, Allbirds had 60 stores, including 45 in the U.S., but in recent months it has been shuttering its physical footprint and focusing on its online and wholesale business.

Assuming the deal gets approved by Allbirds shareholders later this spring, the label will join American Exchange’s stable of branding and licensing partnerships involving such names as Aerosoles, Jonathan Adler and XOXO.

Allbirds CEO Joe Vernachio endeavored to put a positive spin on the sale news, saying “this next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”