The founder of Australian brand Bared Footwear has weighed in on the downfall of Allbirds, an American brand that was sold recently for US$39 million, well-below its US$4 billion dollar value five years ago.
The sale price is also below the reported value of its own inventory. American Exchange Group (AEG) – a brand management company – now owns the distressed business.
Speaking on the downfall, Bared Footwear founder and podiatrist Anna Baird said the reality of this outcome is simple: “People buy our products because they look great and are really comfortable. Not because of our investment in trying to make a better product for our planet.”
Allbirds has long-held a keen focus on sustainability. While sustainability has become a central narrative across fashion and footwear, Bared argues that it cannot be the sole or even primary driver of consumer demand.
Instead, the core focus should be on desirability. Baird said desirability is not optional; it’s everything to a profitable business.
“If you don’t get that right, nothing else matters,” Baird said. “You can have the best intentions in the world, but if the product doesn’t resonate, the business won’t survive long enough to make an impact.”
Baird founded her business in 2008, focusing on fashionable shoes that are also comfortable. In 2021, the brand became the first Australian footwear brand to be certified B Corp. According to Bared Footwear, shoes are the most technically challenging category in fashion, with products composed of components, each requiring durability, flexibility and performance.
“Shoes are incredibly complex,” Baird said. “They’re made from many different materials, all bonded together, all needing to perform under constant stress.
“Trying to replace each of those components with something more sustainable without compromising comfort, durability, or design is incredibly difficult.”
This complexity creates a significant barrier for footwear brands attempting to lead with sustainability alone. According to Baird, any of the materials required to meet both performance and environmental standards either do not yet exist at scale or come with substantial cost and risk.
Baird is clear that purpose must be built on a commercially viable foundation. She said Bared invests heavily in better materials because it is the right thing to do, but noted her team is under no illusion.
“Our customers come to us for the product first. Sustainability is not the hook. It’s the responsibility.”
This philosophy reflects a broader shift in how distressed consumer brands are being valued. As recent market activity shows, when performance declines and cash runs out, brand equity alone is not enough. Tangible assets like inventory set the floor.
“For any brand, the lesson is clear,” Baird said. “You cannot build a business on narrative alone. You need a product that people genuinely want to buy, wear, and come back for.
“Allbirds’ rise came from its commitment to doing better by the planet so it is really sad to see the consumer shift away from what was a brand with integrity that was trying to do the right thing.”
Barid said her brand is committed to doing better, but her team will never lose sight of why customers buy their products.
“If we don’t make the most desirable shoes in the market, we don’t get to play the game.”