what happened to allbirds

Allbirds went from a high-flying sustainable sneaker brand to a company under major pressure, and the latest move is a dramatic one: it’s shutting its remaining full-price U.S. stores and pushing harder toward e-commerce and other lower-cost channels. The broader story is that growth slowed sharply after its 2021 IPO, losses piled up, and the company’s market value collapsed from its peak.

Quick Scoop

Allbirds was once one of the biggest “cool startup” names in footwear, helped by its eco-friendly image and early DTC success. But after expanding too fast and taking on the costs and expectations of a public company, revenue started sliding and the business struggled to stay profitable.

What Changed

• The company is closing all of its full-price U.S. stores by the end of February 2026.

• It is shifting back toward e-commerce, wholesale, and international distributorships.

• Its shares have lost most of their value since the company’s peak, and revenue fell significantly after 2022.

Why It Slipped

The short version: the brand got big quickly, but keeping that growth going was hard. Allbirds appears to have run into the classic DTC problem of high expansion costs, weaker demand after the hype cycle, and heavy pressure to deliver public-market growth while still chasing profitability.

Where It Stands Now

A recent update says Allbirds entered a definitive asset purchase agreement with American Exchange Group for an estimated $39 million, with closing expected in Q2 2026 if approved. That suggests the company is still in a restructuring or wind-down phase rather than a clean comeback story.

What People Are Saying

The public discussion is split:

• Some customers still praise the comfort and convenience of the shoes.

• Others point to declining product durability, weak retail performance, and trouble sustaining the brand’s early momentum.

Bottom Line

Allbirds didn’t vanish, but it did hit the wall: the brand that once looked like a breakout sustainable footwear winner is now in retrenchment mode, cutting stores and trying to salvage value through a leaner business model.

TL;DR: Allbirds grew fast, went public, lost momentum, and is now shutting U.S. stores while restructuring around e-commerce and a possible asset sale.