The Atkins company is going though Chapter 11 Bankruptcy proceedings.
Bloomberg has the story:
Atkins Nutritionals Files for Bankruptcy Protection in New YorkThe problem also stems from the fact that the diet simply did not work for many people. The premise is that by eliminating carbohydrates, you force your body into a state of Ketosis. In this state, the body stops deriving the majority of its energy from glucose and starts burning its stored fats. The "diet" works like gangbusters but your breath smells like paint thiner (acetone), you have absolutely zero energy and you aren't quite there mentally (the brain has a specific need for glucose). Most people would put a couple of days into the strict (effective) interpretation of the diet and would then backslide into a "low carb" mode letting their bodies slip out of Ketosis. Then, they are eating huge amounts of fat and not exercising as much since they are still not eating the carbs they should be for energy. Immediate weight gain. Good thing they didn't because Ketosis is incredibly hard on the body (it's one of the last things the body does before it starves to death). We would have become a nation of skinny Kidney Dialysis patients. A very good diet can be found here: The Hacker's Diet
Atkins Nutritionals Inc., founded by late diet guru Dr. Robert Atkins, filed for bankruptcy protection in New York today after struggling with increasing competition from low-carbohydrate food producers.
The company lists assets of $301 million and liabilities of $325 million in papers filed with the U.S. Bankruptcy Court in New York. Atkins owes UBS Securities LLC and other lenders roughly $301 million under a 2003 loan, according to court papers.
"Mainstream companies such as Unilever, Kraft, and General Mills broke into the controlled-carbohydrate market with in 2004 with well-funded, aggressive product launches," Rebecca Roof, the company's chief restructuring officer, said in court papers. As a result, Roof said, sales in 2004 were "dramatically less than forecast."
