Ding Dong...

Atkins Files for Bankruptcy: Low-Carb Trend Fades

(Bloomberg) Atkins Nutritionals Inc., founded by the late diet guru Dr. Robert Atkins, filed for bankruptcy protection in New York as consumer interest in low-carbohydrate foods faded.

The company listed 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 the papers filed yesterday.

``The low-carb fad has gone,'' said Michael Steib, a consumer-goods analyst for Morgan Stanley in London. ``Dieting habits are very short-lived. It came very quickly and disappeared very quickly.''

Foodmakers including Unilever and Kraft Foods Inc. were hurt in 2003 and 2004 as U.S. consumers began to monitor their weight by limiting their sugar intake, as is advocated by Atkins' diet plan. The companies retaliated by introducing their own line of low-sugar foods, such as Unilever's Carb Options line and Kraft's South Beach diet meals, and the competition hurt Atkins' company.

*Click here for full article.