Smartbird Sells Footwear IP for $39 Million, Doubles Financing to $100 Million
BIRD•Allbirds renamed itself Smartbird Inc, appointed Nadia Carlsten as CEO and sold its footwear IP and assets to American Exchange Group and WSG Brands for $39 million. It doubled its convertible financing facility to $100 million while Q3 revenue fell 23.3% to $33 million.
1. Business Pivot and Asset Sale
Allbirds completed its transition from a footwear brand to an AI infrastructure firm, rebranding as Smartbird Inc. It sold its intellectual property and footwear assets to American Exchange Group in partnership with WSG Brands for $39 million, with American Exchange handling design and manufacturing and WSG leading brand management and market expansion.
2. Leadership Change
Smartbird appointed Nadia Carlsten as president and CEO following the resignation of former CEO Joe Vernachio and his exit from the board. Carlsten’s expertise in AI and digital operations will guide the company’s shift toward AI infrastructure services.
3. Financial Strategy and Past Performance
The company increased its convertible financing facility from $50 million to $100 million to support its new AI-focused operations. This strategic funding boost follows a 23.3% drop in Q3 revenue to $33 million from $43 million year-over-year and the closure of all U.S. full-price stores, retaining only four outlet and flagship locations.
