CHICAGO, Illinois (Reuters) – Atkins Nutritionals Inc., the company behind the low-carbohydrate Atkins diet craze, has filed for Chapter 11 bankruptcy protection, blaming slumping demand and a flood of competing products.
The company, founded in 1989, filed for bankruptcy Aug. 7 in the United States Bankruptcy Court in New York, according to court documents. A spokesperson for the New York-based company did not return a call seeking comment.
The diet, based on the research of Dr. Robert Atkins, promotes eating protein over carbohydrates. It was so popular from 2002-04 that it was blamed for the bankruptcies of several pasta and bakery companies.
But Atkins Nutritionals said demand slumped beginning in the second half of 2004 and rival products flooded the marketplace, prompting the company to restructure and replace its management team.
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.
