Willow BergeronAllbirds, the sustainable shoe brand that was once valued at $4 billion, has closed all of its full-price retail stores in North America as of early 2026. For Canadian shoppers who hold gift cards, have outstanding returns, or made recent purchases, the closures raise urgent questions about what you are entitled to — and how to protect yourself when a retailer shifts entirely online.
What Happened with Allbirds
The closures were announced by Allbirds in January 2026, with all full-price U.S. stores shut by the end of February. Allbirds reported a net loss of $77.3 million in 2025 and negative operating cash flow of $55.1 million, with the company explicitly disclosing "substantial doubt about its ability to continue as a going concern."
The brand has not declared bankruptcy. It pivoted to a fully online model, maintaining its e-commerce platform and a network of international distributor partners — including in Canada. Two outlet stores remained open in the United States, and two full-price stores in London were preserved. However, the physical retail presence in Canada was eliminated entirely.
The company was subsequently sold, with the transaction receiving unanimous board approval. The new ownership continues to operate the brand's online store and honour existing policies.
What This Means for Canadian Shoppers with Gift Cards
Canadian consumer protection around gift cards became significantly stronger after federal amendments to the Payment Card Networks Act and similar provincial regulations. In most provinces:
- Gift cards cannot expire within 24 months of purchase
- Inactivity fees are restricted or prohibited for the first 12 months
- Retailers must honour gift cards even after ownership changes
Allbirds has confirmed that its gift cards do not expire and remain valid for all products on the e-commerce platform. If you hold an Allbirds gift card, you can still redeem it at allbirds.com. However, if you prefer a refund rather than store credit, that is a different matter — and this is where legal advice can be valuable.
Under most provincial consumer protection laws in Canada, a retailer that changes its model significantly after a gift card purchase may have obligations to offer refunds or exchanges. The rules vary by province. Ontario's Consumer Protection Act, 2002, for example, provides protections that go beyond what a retailer's posted policy may state.
According to the Financial Consumer Agency of Canada, consumers have rights that cannot be waived by store policies, and understanding those rights is the first step to asserting them.
Recent Purchases, Returns, and Warranty Claims
If you purchased Allbirds products recently — within the last 30 to 60 days — and need to return them, the standard return window of 30 days still applies through the online channel. The brand's 30-day trial return policy remains active on its website as of April 2026.
Warranty claims are more complicated when a brand pivots to online-only. For defective products:
- Contact Allbirds directly through their online help centre. Document the defect with photos.
- Keep your proof of purchase. A receipt, order confirmation, or bank statement showing the Allbirds transaction is essential.
- Know your provincial rights. In many provinces, consumer goods must be fit for purpose regardless of what a retailer's return policy says. A shoe that falls apart in three months is a warranty claim, not just a return request.
If Allbirds does not honour a legitimate warranty claim, the recourse includes filing with your provincial consumer protection office, disputing the charge with your credit card provider (typically available for up to 120 days from the transaction), or seeking advice from a consumer law specialist.
When to Consult a Lawyer
Most Allbirds-related issues will resolve through the company's online customer service. But there are situations where a consumer lawyer's input is genuinely useful:
Gift card value over $200 that you want refunded, not spent online. A lawyer can assess whether provincial law creates an obligation to offer cash redemption in your specific circumstances.
A group of consumers with similar claims. If multiple Canadians in a similar situation are affected, a lawyer can assess whether a class action or coordinated complaint has merit.
A recent large purchase that can no longer be returned. If you spent $500+ in the weeks before the store closures and now cannot complete a return at a physical location, a lawyer can advise on options under your province's consumer protection legislation.
Consumer law consultations are often shorter than people expect. A one-hour session with a qualified Canadian lawyer can clarify exactly what your options are, which provincial protections apply to your purchase, and whether pursuing a claim is worth the effort.
Note: Consumer protection rules vary significantly by province. This article is for general information only. For advice specific to your situation, consult a qualified Canadian lawyer or your provincial consumer protection office.
