Allbirds is selling for $39 million. It raised nearly 10 times that amount in its IPO. | TechCrunch

"Allbirds' sale to American Exchange Group for $39 million is a stark contrast to the $348 million raised during its 2021 IPO and its peak valuation of over $4 billion."

"The company's aggressive expansion into physical retail and new product categories, such as leggings and performance shoes, did not connect with its core customers, leading to substantial losses."

"Co-founder Tim Brown acknowledged that the rapid growth had cost the company 'some of our DNA,' indicating a loss of brand identity amid expansion efforts."

"Shares of Allbirds jumped 36% in after-hours trading following the announcement of the sale, indicating investor optimism despite the company's struggles."

Allbirds will sell all its assets and intellectual property to American Exchange Group for $39 million, a fraction of its previous valuation. The deal requires shareholder approval and is expected to close in the second quarter. Shares rose 36% after the announcement, reflecting a premium over the current trading price. The brand's decline followed aggressive expansion into new product categories that failed to resonate with core customers, leading to significant losses and a loss of brand identity.

Read at TechCrunch