|Dr. Jai Maharaj
medicine forum Guru Wannabe
Joined: 29 Apr 2005
|Posted: Tue Aug 02, 2005 5:22 am Post subject:
ATKINS DIET BITES THE DUST, FILES FOR BANKRUPTCY
Low-Carb Leader Atkins Files for Bankruptcy
By Nichola Groom, Reuters
Monday, August 1, 2005
The Atkins company, founded in 1989 by Dr. Atkins, has
been hurt by waning popularity of the diet.
New York (Aug. 1) - The company behind the Atkins Diet,
standard bearer for the low-carbohydrate diet craze that
put some bakeries and pasta makers out of business in its
heyday, has itself filed for bankruptcy as U.S. consumers
have tired of the once-sizzling fad.
Atkins Nutritionals Inc., which filed for Chapter 11
bankruptcy on Sunday in New York bankruptcy court, said
there was still a bright future for the company in weight
loss. It plans to pare back its operations to focus on
selling nutrition bars and shakes.
Based on research done by weight-loss guru Dr. Robert
Atkins, the Atkins diet promotes eating proteins like
meat and cheese while excluding carbohydrates such as
bread and pasta.
Atkins and other low-carb regimens such as the South
Beach and Zone diets were so popular from 2002 through
2004 that the trend was blamed in part for the
bankruptcies of pasta maker New World Pasta Co. and
Twinkies and Wonder Bread maker Interstate Bakeries Corp.
At the same time, however, the diet received widespread
criticism from nutritionists who said it encouraged
people to overeat fatty foods like bacon.
In its heyday, Atkins listed Goldman Sachs Group Inc.
among its backers, and analysts predicted an initial
public offering. Its trademark red ''A'' logo appeared on
a range of packaged foods and was featured in advertising
for Subway sandwich stores and the T.G.I. Friday's
The low-carb craze peaked in early 2004, when over 9
percent of U.S. adults claimed to be on such a diet,
according to market research firm NPD Group. That figure
declined to 2.2 percent last month.
''The low-carb trend has sort of died on the vine,'' said
Bob Goldin, executive vice president at Chicago-based
food industry consulting firm Technomic Inc.
Atkins has said demand for its products began to slump at
the end of 2004 as rival food companies, including
heavyweights like Kraft Foods Inc., flooded the market
with everything from low-carb Oreo cookies to cereal.
At the same time, Atkins faced increased scrutiny by
critics. In particular, the death of company founder
Robert Atkins after a fall in April 2003 led to much
negative publicity when reports claimed he had been
overweight and suffered from a heart condition.
Last fall, the New York-based company hired a turnaround
specialist and cut jobs to boost efficiency. It also
brought in new management -- though former H.J. Heinz Co.
executive Neil Harrison left earlier this year after just
three months at the company's helm.
Mark Rodriguez, who became Atkins' chief executive in
June, said in a statement that the company has ''adjusted
our organization to accommodate a smaller business.'' He
was not available for further comment, a spokesman said.
For the 12-month period ended Dec. 31, 2004, Atkins said
it had total assets of $301 million and liabilities of
$325.1 million, according to court documents. For the
same period, it recorded a loss of $340.9 million,
including an asset impairment charge.
The company said it secured $25 million in debtor-in-
possession financing arranged by UBS. Five other
potential lenders refused to extend credit to the
company, Atkins Nutritionals said in its filing.
Atkins said the ''overwhelming majority'' of its lenders
had agreed to a prearranged plan to restructure its debt,
and it would file a reorganization plan shortly for
bankruptcy court consideration. Its lenders have agreed
to receive equity in the company in exchange for reducing
debt, the company said.
Additional reporting by Emily Kaiser in Chicago
- - - - - - -
Low-carb pioneer Atkins files Chapter 11
By Elizabeth LeSure
Sunday, July 31, 2005
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
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
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 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.
The company said its bankruptcy filing would not affect
its day-to-day operations.
- - - - - - -
Another fad bites the dust, at least until it comes 'round again.
Posted on 7/31/2005 in part by SmithL
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End of forwarded messages
A PREVIOUS POST:
[ Subject: DIET DOCTOR ATKINS WAS OBESE, HAD HEART DISEASE
[ From: Dr. Jai Maharaj
[ Date: 11 Feb 2004
Report: Diet Doctor Atkins Was Obese
Tuesday, February 10, 2004
NEW YORK - Dr. Robert Atkins, whose
popular diet stresses protein-rich
meat and cheese over carbohydrates,
weighed 258 pounds at his death and
had a history of heart disease, a
newspaper reported Tuesday.
Atkins died last April at age 72
after being injured in a fall on an
Before his death, he had suffered a
heart attack, congestive heart
failure and hypertension, The Wall
Street Journal reported, citing a
report by the city medical examiner.
At 258 pounds, the 6-foot-tall Atkins
would have qualified as obese,
according to the Centers for Disease
Control and Prevention (news - web
sites)'s body-mass index calculator.
Diet is one potential factor in heart
disease, but infections also can
contribute to it.
Posted on 2/10/2004 by villager
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