Allbirds is closing all of its full-price stores in the US, leaving two outlets as the brand executes its turnaround strategy.

Founded in 2015 by former professional footballer Tim Brown, Allbirds created a wool fabric made for footwear, after looking at the properties of Merino wool. The company claims to have made an “entirely new category of shoes”.

In 2021, it received a valuation of $4 billion at its IPO. Its January 2026 market cap sits at $33 million.

The company said it will close its remaining full-price stores across the US by the end of next month and will keep only outlet stores. Resources will be directed towards its e-commerce business following the closures.

“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” said CEO Joe Vernachio. 

“We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

Allbirds closed 14 US stores in the 2024 financial year, and an additional nine last year. Its most recent financial quarter saw revenue fall by 23.3 per cent year-on-year, with an adjusted EBITDA loss of $15.7 million.

Full-year earnings are expected to be reported in March.