Allbirds has sold its intellectual property assets, trademarks, shoe business, and related assets to American Exchange Group (AEG) in a US$39 million deal.
The acquisition was completed through a partnership between AEG and brand management and licensing platform WSG Brands, which will jointly own the brand moving forward.
WSG Brands founder and CEO Jack Cheika said the company intends to build on the brand’s existing consumer appeal.
“We believe Allbirds represents one of the most compelling brand opportunities in the market today,” said Cheika.
“The brand has built meaningful awarenessaround the world. Our vision is to preserve what consumers love about Allbirds while expanding its reach into new categories, markets, and partnerships.”
Under the agreement, AEG will oversee product design, sourcing, and manufacturing, while WSG will lead brand management, operations, licensing, and expansion initiatives.
The transaction serves as a new chapter for Allbirds, which was founded by former Kiwi footballer Tim Brown.
Brown launched the business as a passion project in 2007, aiming to offer a sustainable alternative to conventional sneakers made from petroleum-based materials.
He later partnered with renewables expert Joey Zwillinger, as they developed sneakers using materials such as Merino wool, sugarcane-based foam, and tree fibre. The brand grew rapidly, expanding across the United States and into international markets, including Australia and South Korea.
However, the company has faced challenges in recent years amid slowing sales and restructuring efforts.
In 2023, it signed away distribution rights for its Australia and New Zealand operations.
Earlier this year, Allbirds announced plans to close all of its full-price US stores. By April, the company revealed a surprise pivot, venturing into artificial intelligence under the name ‘NewBird AI’, a departure from its footwear roots.
AEG CEO Alen Mamrout said the company still sees potential in the brand.
“Allbirds has built a globally recognised brand by bringing a distinct point of view to the market and creating a meaningful connection with consumers around the world,” said Mamrout.
“We see a compelling opportunity to build on that foundation and unlock the brand’s next phase of growth.”
