Not BBing as such, but of interest to a lot of you.

Pete
www.veganbodybuilding.org
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http://news.yahoo.com/news?tmpl=story&cid=509&e=6&u=/ap/20050801/ap_on_bi_ge
/atkins_bankruptcy

Low-Carb Pioneer Atkins Files Chapter 11


By ELIZABETH LeSURE, Associated Press Writer
Mon Aug 1, 6:04 AM ET



NEW YORK - The company started by the late nutrition guru Dr. Robert C.
Atkins to promote a low-carb lifestyle has filed for bankruptcy court
protection, a further sign of the waning popularity of the diet.

A hearing on the prearranged, Chapter 11 filing by Atkins Nutritionals Inc.
was scheduled for Monday in U.S. Bankruptcy Court, spokesman Richard
Rothstein said Sunday.

The privately held company, founded in 1989 by Dr. Atkins, said it had
reached an agreement with the majority of its lenders to give them equity in
exchange for lowered debt.

The company, which sells Atkins-brand nutrition bars, shakes and candy as
well as offering low-carb diet information, has been hurt by waning
popularity of its namesake approach, which focuses on eliminating
carbohydrates such as bread and pasta to shed weight.

The diet became one of the most popular in U.S. history, spawning a virtual
cottage industry of low-carb regimens — but also drew criticism from experts
for its focus on fatty foods and low fruit and vegetable consumption.

The Atkins company 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.

A recent survey by the NPD Group, an independent marketing information
company, found that the number of American adults on any low-carb diet
peaked at 9.1 percent last February and dropped to 3.6 percent by
mid-November.

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 Dr. Atkins, who died in 2003 from
injuries he suffered in a fall.

___

On the Net:

http://www.atkins.com
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