The journey of this footwear brand has reached its end.

Allbirds, once celebrated as a pioneer in eco-friendly fashion, has been sold for a mere $39 million. This sharp decline is a stark contrast to its $2 billion valuation just four years ago, when it was seen as a potential competitor to Nike.

Established in 2015 and buoyed by Silicon Valley enthusiasm, Allbirds is facing its downfall amid mounting challenges in the broader sneaker industry.

Even Nike, a titan in the sector, has experienced setbacks, with sales dropping and its stock plummeting to a 15-year low, having lost about 75% of its value since reaching a high in 2021.

Smaller companies like Allbirds have been even more severely impacted. American Exchange Group is set to acquire the company, pending shareholder approval.

Unlike performance-focused brands such as Nike and Adidas, Allbirds found its niche among tech professionals and millennials, offering a shoe that bridged the gap between business attire and casual wear.

But that carefully crafted image has unraveled as shoppers pulled back on spending and turned toward cheaper – or more performance-driven – alternatives. 

Cost has been a problem. Allbirds’ Men’s Dasher sneakers cost $140 and women’s Varsity Airy cost $120.

The company has now shut all its US stores, after closing nine last year and 15 in 2024. It has 45 in the US and 60 globally at its peak. It will continue as a website only retailer.  Sales had plunged. 

In 2021, Allbirds released its eco-conscious ‘Natural Run’ performance apparel line 

Allbirds closed several storefronts in 2024, later reporting a decline in earnings

Revenue dropped to just $33 million in the third quarter of 2025 – down $10 million year-on-year – as the brand blamed ‘structural changes’ in its business.

Joe Vernachio, a co-CEO, said the company is ‘incredibly thankful’ to its employees despite challenges faced by the brand.

‘Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort,’ he added. 

Retail expert Hitha Herzog previously told the Daily Mail that Albirds faced a series of problem.

‘The product is not great,’ Herzog said. ‘Its design is not exciting, the color ways are muted and boring, and their performance shoes are subpar compared to their competition.’

Footwear remains available for purchase on the company’s website, including their recent monochromatic collaboration with Pantone. Some social media users theorized about the reasoning behind Allbirds’ declining sales.  

‘I bought a pair back in 2021 for a Disney trip, really liked them,’ one Reddit user said. 

‘They felt well made and pretty durable. My wife bought me another pair last year and within a month, there was a hole on the top from my big toe. Sucks to see them go downhill so fast.’

Allbirds is known for creating minimalist sneakers from recycled and natural materials

Allbirds was co-founded by New Zealander Tim Brown (left), who teamed up with Joey Zwillinger (right), an engineer and renewables expert

NBA’s best ever player Michael Jordan wearing Nike Air Jordans, the sneaker that made Nike the biggest sports brand in the world – but it has been struggling in recent years

Meanwhile, Nike’s revenue has been dropping consistently since early 2024 while footwear companies Adidas and Hoka have seen profits soar.

Shares are at an 11-year low, with the company losing around 75 percent of its value since shares peaked in 2021. 

This could be attributed to Nike’s more ‘woke’ image shift, its retreat from major retail partners in favor of direct-to-consumer selling and a deepening sales slump in China.

‘Nike’s results are somewhat better than anticipated, though they show that the brand is having a very uneven recovery and has a lot of work to do to get back on the front foot,’ retail analyst Neil Saunders told The Daily Mail.