Atkins diet company goes belly up

THE company that promoted the low-carb Atkins diet and sparked a worldwide craze has filed for bankruptcy protection in the US.

Atkins Nutritionals took the step after people wanting to lose weight increasingly turned their backs on a diet that focused on cutting out foods such as bread and pasta in favour of protein-rich meat and cheese.

The company was set up in 1989 by Dr Robert Atkins and the diet gained international fame after a host of celebrities such as Jennifer Aniston and Geri Halliwell claimed it helped them stay trim.

But the Atkins diet horrified many in the medical profession because it emphasised the consumption of fatty foods at the expense of fruit and vegetables.

Demand also dropped after an obese Dr Atkins died in 2003 and rival multinational firms started promoting similar products, such as low-carb bars of Kit-Kat and Rolo from Nestlé.

Atkins Nutritionals, which is privately owned, owes $300 million (€246m) and is understood to have reached an agreement with the majority of its lenders to give them equity in exchange for lower debt.

President and chief executive Mark Roriguez said the New York-based company had “adjusted our organisation to accommodate a smaller business” in the past year.

After it leaves bankruptcy, Atkins will focus on its nutrition bars and shakes.