Allbirds, the sustainable footwear brand based in San Francisco, has been sold to American Exchange Group for $39 million after experiencing a dramatic decline from its peak valuation of over $4 billion. The company, which went public in 2021, has seen its stock price plummet by more than 99%, leaving it valued at just over $20 million. Initially, Allbirds enjoyed rapid success, selling over 1 million pairs of its merino wool trainers in its first two years, attracting celebrity endorsements from figures like Leonardo DiCaprio and Oprah Winfrey. However, increased competition and a failure to maintain consumer interest led to a 23% drop in sales in the third quarter of 2025, resulting in a $20.3 million loss. As part of its restructuring, Allbirds has closed most of its US stores, retaining only two in the UK. CEO Joe Vernachio expressed hope that the acquisition would set the brand up for future success.