New York — 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 today 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.
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.
Robert Atkins died in 2003 from injuries he suffered in a fall.
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