Trendy tech bro sneaker brand Allbirds once worth $4B sells assets for chump change
Allbirds – the trendy, eco-friendly wool sneaker beloved by tech bros and celebs like Leonardo DiCaprio – is selling its assets for $39 million, a mere fraction of its one-time $4 billion valuation.It’s a severe fall from grace for the San Francisco-based startup, which on Monday abruptly canceled an upcoming earnings call and announced it has agreed to sell its intellectual property and certain assets to American Exchange Group, which owns Ed Hardy and Aerosoles.Following its 2021 IPO, Allbirds was a smash-hit with everyone from Silicon Valley tech bros and soccer moms to former President Barack Obama. It secured partnerships with actor Stanley Tucci and Blink-182 drummer Travis Barker, and has been spotted by paparazzi on Hilary Duff, Kate Hudson, Chris Hemsworth and Jennifer Garner.Allbirds won over customers with its sustainably-made wool sneakers, and was viewed as the latest direct-to-consumer darling to rack up huge business online fast, similar to Warby Parker.After the initial success of its wool sneakers, Allbirds has been struggling to hold onto customers as its new products have flopped, and on Monday, it agreed to sell most of the business for about one-eighth of the $301 million it raised during its IPO five years ago.Joey Zwillinger, an engineer, and Tim Brown, a former professional soccer player, launched the sneaker brand in 2016 with the idea that customers would be willing to pay a premium for high-quality, eco-friendly products.Its launch was a hit, with Time magazine quickly dubbing Allbirds’ Wool Runner the “world’s most comfortable shoe.”“One Battle After Another” star DiCaprio – an outspoken environmentalist – announced in 2018 that he was investing in the sneaker company and its eco-friendly mission.Allbirds also pledged to donate returned sneakers to Soles4Souls, a charity.But customers soon complained that the sneakers wore out quickly, and its concept of sustainability proved to be far down customers’ lists of pr...