Atkins files Chapter 11

David McGough · 08-01-2005, 08:00 AM

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 · 08-01-2005, 09:16 AM

Is anyone really surprised by this "news"?

Todd Hochard · 08-01-2005, 11:47 AM

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

Quentin · 08-01-2005, 12:20 PM

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 · 08-01-2005, 12:29 PM

Quote:

Actually, I'm surprised. All I see anywhere (fast food, restaurants, grocery store) are "carb smart" items.

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".

**HTF Ads**

Matt Butler · 08-01-2005, 01:46 PM

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

Scott Merryfield · 08-01-2005, 02:50 PM

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

Mike Heenan · 08-01-2005, 06:59 PM

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 · 08-01-2005, 07:04 PM

i hate the use of the "word" carb.

CJ

David McGough · 08-01-2005, 07:58 PM

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