Atkins Nutritionals Inc., the commercial arm of the company that, if it did not create the low-carb craze certainly was responsible for popularizing it, filed for bankruptcy protection yesterday. Published reports say that the company owes $300 million in principal and interest, and has already struck a deal with the majority of its creditors that will give them equity in exchange for lowered debt.
The company blamed the filing on consumers’ reduced interest in the low-carb craze, as well as the backlash against the diet on the part of people arguing that its principles may have promoted weight loss but was not healthy overall.
In a statement, company president/CEO Mark S. Rodriguez said the company has "adjusted our organization to accommodate a smaller business" and will promote its brands "more broadly for consumers who are concerned about heath and wellness,” and will focus on nutrition bars and shakes when it gets out of bankruptcy.
The company blamed the filing on consumers’ reduced interest in the low-carb craze, as well as the backlash against the diet on the part of people arguing that its principles may have promoted weight loss but was not healthy overall.
In a statement, company president/CEO Mark S. Rodriguez said the company has "adjusted our organization to accommodate a smaller business" and will promote its brands "more broadly for consumers who are concerned about heath and wellness,” and will focus on nutrition bars and shakes when it gets out of bankruptcy.
- KC's View:
-
There probably are a few bread company CEOs shaking their heads this morning…and maybe even smiling a bit as they nibble on their toast or muffins.
We don’t take pleasure in anyone’s misery. (Well, that’s not entirely true...but we’re certainly not delighting in the problems being suffered by the Atkins folks.) But we have to say that this probably was inevitable. The low-carb craze was just too hot to remain so…and the crash was almost certainly going to be loud.
Future craze-mongers should take note. And tread carefully.
