Atkins Nutritionals: Bankruptcy Hearing
Author: Dr Robert C. Atkins
Atkins Diet Company Seeks Bankruptcy Protection
Atkins Nutritionals, the company behind the low-carb diet which swept the world and split medical opinion, has applied for bankruptcy protection in the US. The firm was founded in 1989 by Dr Robert Atkins and promoted a diet that replaced carbohydrates such as bread and pasta with proteins like meat.
Atkins Diet Bankruptcy Hearing
A US bankruptcy court will hear the firm's Chapter 11 filing on Monday. Chapter 11 in the US allows a company to keep trading, but gives it protection from creditors in the hope that it can work out a rescue plan and put its finances in order.
President and chief executive Mark Rodriguez said Atkins has adjusted its structure "to accommodate a smaller business" and will promote its brands "more broadly for consumers who are concerned about heath and wellness". After it leaves Chapter 11 protection, the company will focus on its nutrition bars and drinks, Mr Rodriguez said.
The Atkins diet was a global phenomenon that changed the way many people ate and spawned a whole range of low-carb food products in supermarkets and restaurants.
Carbohydrate Reduction - Health Issues
While cutting out carbohydrates proved a very successful way for many people to lose weight, medical experts said that following the diet plan for an extended period could have long-term negative effects on health. They pointed to a scarcity of vegetables and fruit, and said that people should try to follow a more balanced diet.
Atkins has hit back by saying that its Atkins Nutritional Approach is a "lifetime nutritional philosophy".
Low Carbohydrate Approach Validated in Trials
Whether this event is likely to signal a significant change in dieting habits remains an open question. Clinical trials have validated the "lower carbohydrate" approach, in terms of both weight loss and general health.
Sources:
BBC
News
