A committee of independent directors reviewed the deal, which then received unanimous approval from the Allbirds Board of Directors.
The agreement remains subject to approval by Allbirds’ common stockholders, with completion anticipated in the second quarter of 2026.
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Allbirds expects to file a proxy statement detailing the terms and seeking shareholder approval for both the asset sale and subsequent company dissolution by 24 April 2026.
The company expects to distribute net proceeds to shareholders, after accounting for wind-down costs, during the third quarter of 2026.
Allbirds CEO Joe Vernachio said: “We are incredibly thankful to our teams for the work they have been doing to fuel our product engine, build awareness of Allbirds and deliver an engaging customer experience. Over the past decade, Allbirds has evolved into a lifestyle footwear brand known for modern design, innovative materials and unparalleled comfort. This next chapter with AXNY builds on the foundational work already completed and sets up the brand to thrive in the years ahead.”
This development follows earlier measures announced in January aimed at restructuring the business towards a simpler and more profitable operating model focused on lifestyle footwear.
Allbirds planned to close its remaining full-price stores in the US by the end of February 2026, with the intention to shift attention towards its e-commerce operations, wholesale relationships, and international distributor partnerships.
As of September 2025, Allbirds operated 23 stores, including 21 in the US and two internationally.
In its financial results for the third quarter of fiscal 2025, the company recorded a net loss of $20.3m, which translates to a loss of $2.49 per share.
Allbirds’ net revenue also declined by 23.3% from the previous year to $33m, largely due to changes such as transitioning international markets to distributors and planned retail store closures.
The company outlined plans during its third-quarter update to move towards a distributor model abroad and close more retail locations domestically.
TD Cowen is advising Allbirds on financial matters, and Holland & Hart is acting as the company’s legal counsel for the transaction with AXNY.
