SAN FRANCISCO — American Exchange Group, a New York-based fashion and consumer goods company, acquired San Francisco–based sustainable trainer brand Allbirds for $39 million in early April 2026. Allbirds was once valued at more than $4 billion.

Allbirds listed on the Nasdaq stock exchange in 2021 with a $4 billion valuation, and its shares rose by about 90% on the opening day of trading. Since that initial public offering, however, Allbirds shares fell by more than 99%, leaving the company valued at just over $20 million before the acquisition was announced.

The company had been scheduled to publish its full-year results in early April 2026 but canceled the announcement as it disclosed the acquisition deal. In the third quarter of 2025, Allbirds' net revenue decreased by about 23% year-on-year to $33 million, alongside a $20.3 million loss. The brand reported declining net revenue every quarter since 2022.

Allbirds was founded in 2015 by Tim Brown, a former vice-captain of the New Zealand national soccer team, and Joey Zwillinger, an engineer and renewables expert. The brand launched in March 2016 with a Kickstarter campaign that hit its $30,000 goal in five days and ultimately raised nearly $120,000 to produce a wool running shoe designed to have a lighter environmental impact than traditional athletic shoes. In its first two years after launch, Allbirds sold more than one million pairs of its original merino wool trainers. The company received B Corp certification in 2016.

After its IPO, Allbirds opened dozens of stores and expanded into a wide range of clothing, with sales eventually surpassing $1 billion. The company incurred net losses as it opened stores around the world and faced increased competition from eco-focused rivals such as Veja and Swiss sports brand On. At the end of 2022, Allbirds operated over 50 stores worldwide. By the end of September 2025, that number had shrunk to 23, including 21 in the United States. In January 2026, the company announced it would close all but two of its remaining 20 U.S. stores while keeping its two London shops open.

Neil Saunders, managing director of GlobalData, said: "Allbirds has gone from being a high flyer to a dead parrot." Saunders said its early success "was driven by Silicon Valley hype, more than deep popularity with consumers in the American hinterland."

Joe Vernachio, the chief executive of Allbirds, 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 … builds on the foundational work already completed and sets up the brand to thrive in the years ahead."

American Exchange Group, which also owns the fashion label Ed Hardy and the accessories maker Born, has not publicly commented on its plans for the brand.