Allbirds, once a darling of Silicon Valley, is selling all its assets for just $39 million. This price tag is but a fraction of the over $4 billion it briefly commanded during its initial public offering (IPO) in 2021.

The brand’s rapid expansion into new product categories like leggings and jackets didn’t resonate well with their core customer base, leading to losses that co-founder Tim Brown admitted had 'cost us some of our DNA.'

Proceeds from the sale are expected to be distributed to stockholders in the third quarter. Despite being down, shares jumped 36% on news of the deal.

The buyer, American Exchange Group, is a privately held brand management firm that also owns Aerosoles and Jonathan Adler. The company's move back into the space after Allbirds' struggles suggests a cautious optimism in sustainable fashion as an investment.