Atkins Nutritionals files for chapter 11
UPDATED — Atkins Nutritionals Inc. has filed for chapter 11 bankruptcy protection. The filing, which was was made today, comes after the bust of Atkins’ popularity. The diet is of course still very popular (as our readers are quick to point out), but the vogue-like aspect that defined low-carb diets for a while in 2003/2004 has faded.
bq. 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.
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 Atkins Nutritionals leaves bankruptcy protection, the company plans on focusing on its nutrition bars and shakes business. The chapter 11 filing is not expected to change the day-to-day operations of the company.
Update: The Associated Press reports that Atkins owes $300 million in outstanding principal and interest, and that the company had received $25 million in financing to operate during the bankruptcy proceedings.