Atkins files Chapter 11 (1 Viewer)

[David McGough]

Low-Carb Pioneer Atkins Files Chapter 11
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Jul 31, 9:21 PM (ET)

By ELIZABETH LeSURE

NEW YORK (AP) - Atkins Nutritionals Inc., the company that promoted low-carb eating into a national diet craze, filed for bankruptcy court protection Sunday, a company spokesman said.

Atkins has been hurt by waning popularity of its namesake diet, which focuses on eliminating carbohydrates such as bread and pasta as a way to shed weight. The diet quickly became one of the most popular in U.S. history, spawning numerous derivatives and a virtual cottage industry of low-carb regimens - but also drew criticism from many experts for its focus on fatty foods and low fruit and vegetable consumption.

A hearing on the prearranged, Chapter 11 filing was scheduled for Monday in U.S. Bankruptcy Court, spokesman Richard Rothstein said. The privately held company, founded in 1989 by Dr. Robert C. Atkins, said it had reached an agreement with the majority of its lenders to give them equity in exchange for lowered debt.

Atkins owes $300 million in outstanding principal and interest, Rothstein said.

The company said it had received $25 million in financing to operate during the bankruptcy proceedings, which it said would not affect day-to-day operations.

President and CEO Mark S. Rodriguez said the company has in the past year "adjusted our organization to accommodate a smaller business" and will promote its brands "more broadly for consumers who are concerned about heath and wellness."

After it leaves bankruptcy, the Ronkonkoma, N.Y.-based company will focus on its nutrition bars and shakes, Rodriguez said in a statement.

Private equity firm Parthenon Capital LLC acquired a majority stake in Atkins, in October 2003. Goldman Sachs Capital Partners owns a smaller stake in the company, as does the estate of Robert Atkins, who died in 2003 from injuries he suffered in a fall.

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[Alf S]

Is anyone really surprised by this "news"?

 

[Todd Hochard]

I just *KNEW* you couldn't survive without carbs.

 

[Quentin]

Actually, I'm surprised. All I see anywhere (fast food, restaurants, grocery store) are "carb smart" items. They had to have made a TON of money. Sounds to me like they managed it poorly.

 

[Paul McElligott]

Not every body who advertised their product as "low carb" was cutting Atkins a check. I'd bet that very few of them were.

I knew this phenomenon had gone too far when I started seeing beer advertised as "low carb". :rolleyes

 

[Matt Butler]

I guess Atkins wallet was a bit thin?! Low on the crispy greens? Not enough meat in the fridge?

 

[Scott Merryfield]

Another fad bites the dust. Too bad reality TV hasn't died this quickly.

 

[Mike Heenan]

As one who has successfully completed an Atkins diet and lost 100 pounds, I'm not surprised... especially after his death, Atkins himself obviously wasn't around to promote it, and another factor is the insanely high prices of their products.

But I'll have to defend them, the Atkins diet isn't a no carb diet, that's a common misconception with people who probably tried the diet incorrectly and gave up after gaining weight. It's a really low carb diet for the first phase, then you up your carbs after that phase which is usually about 2 weeks but can be extended a few more weeks if you're really fat, which I was.

 

[Christ Reynolds]

i hate the use of the "word" carb.

CJ

 

[David McGough]

The problem is ATKINS is pushing the Atkins products ( of course) People are still doing the low carb program but not with Atkins products.. Ive lost 68 lbs and kept 45 off for 2 years. The staff that took over when Dr. died are over selling
. Public just isn't buying Atkins products anymore

 

[Chris Lockwood]

> Another fad bites the dust.

If 30 years counts as a fad...

 

[Jason Kirkpatri]

Me too. Carbohydrate all the way.

 

[Mike Heenan]

But you save like what 2 seconds by just saying carb! Lol.

 

[MarkHastings]

BINGO! Before everyone jumped on the 'low-carb' (sorry for the wording use Christ) bandwagon, Atkins products were the only way to get 'low-carb' items. They are highly priced because they were 'specialty' items.

Now that everyone makes 'low-carb' products, people are probably steering clear of the "Official Atkins" line. I know I do. I used to buy Atkins stuff because it was the only stuff around, but now I hardly buy any of their items because of the diversity of "knock-offs".

p.s. I also steer clear of Atkins because I have gotten to the point where I can compromise. Example: I used to get the Atkins bread (which was 5g/slice), but the taste was NASTY! I now get Peppridge Farms 'light' bread (which is 8g/slice). It may not be the lowest carb option, but it's still low in carbs and tastes SO much better. Those extra 3g/slice are worth it because of the taste.

In other words, the "lower-carb" stuff is so much better tasting than the Atkins LOW-carb stuff.

I think a lot of people are going this route. Instead of the "Hard Core" low carb/Atkins way, they've realized that carbs are ok and are just limiting their intake rather than the Atkins routine which gets old, fast!

 

[Nathan Eddy]

This was never teh Atkins routine, as someone has pointed out above. This is STILL a misconception from people who have never read his books, apparently.

You LIMIT carbohydrates during the first few weeks, not eliminate them all together. And then you slowly start adding them back into your diet to see what level you can achieve equilibrium (eating an amount without gaining weight).

The Atkins diet works, and it is healthy. I've lost 40 pounds and kept it off for three years. All my health indicators are fine. Of course, I exercise, too.

 

[MarkHastings]

Yes, I understand and did the very same thing, but I was talking about those who aren't even starting Atkins. The first few weeks of Atkins are pretty "Hard Core" and most people don't want to go this route. Before, you didn't have much choice because Atkins was the only company that made "Low Carb" products, but now that others are producing 'low carb' items, people aren't following the Atkins diet. They are slowly incorporating these low carb items into their routine, which is why I think Atkins is hurting.

In other words, not many people can handle those first few "Hard Core" weeks of Atkins.

 

[Mike Broadman]

Carbs just contain a lot of calories. The reason low-carb/Atkins/whatever diets work for some people is that cutting carbs usually just means cutting lots of calories, and as long as your caloric consumption is less than it expenditure, you will lose weight.

 

[John Stone]

Compared to what, water? Carbs and proteins each contain 4 calories per gram, fats contain 9 calories per gram.

 

[Quentin]

Yep...I guess that is it. The competition has crushed them.

BTW, it is not the caloric amount of carbs that is the problem (as is pointed out by John). It is the effect on blood sugar and insulin.

 

[Mike Broadman]

Fruits and vegetables. If you eliminate carbs, you have to eat more of everything else, and meat is more filling than carbs to many people, so in the end it's consuming less calories.

Also, of the carbs people consume, an inordinate amount is packaged stuff, which has lots of sugar.

I know I can eat three bowls of cereal easily, but only one steak, so even though the fat in the steak has more calories per gram than the cereal, I've eaten so much less food with the steak that it's less calories.