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HEALTH NEWS

Atkins Firm Must Trim Down

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 02 August, 2005  22:45 GMT

atkins diet bankruptcy
An Atkins diet ad was withdrawn in Britain after a watchdog group called for the ad's 'healthier lifestyle' assertion to be taken out because it could not be proven.
It was the dieting revolution that made headlines around the world. Minnie Driver, Geri Halliwell, Elizabeth Hurley and Jennifer Aniston all sang the praises of the Atkins diet, but the US firm that fueled a global phenomenon has been shedding pounds of the wrong sort.

Atkins Nutritionals filed for bankruptcy court protection yesterday after the waning popularity of its namesake diet, which focuses on eliminating carbohydrates such as bread and pasta as a way to shed weight.

The Atkins diet developed by American cardiologist Dr. Robert Atkins quickly became one of the most popular diets in history, spawning numerous derivatives.

Celebrities Retract Endorsement

Superstar devotees such as Renee Zellwegger, who used it to return to shape after piling on the pounds for her role as Bridget Jones, propelled the diet into the headlines, but more recently they have contributed to its downfall.

Jessica Simpson, The Dukes of Hazzard star, claimed to be "messed up" after following the diet and has now reintroduced ice cream, bread, and Italian meals into her diet. But it also drew criticism from many experts for its focus on fatty foods and low fruit and vegetable consumption.

Health Claims Questionable

Earlier this year, an advertisement for the low-carb Atkins diet plan headed, "Enjoy a healthier lifestyle," had to be withdrawn in Great Britain because the Advertising Standards Authority found that the claim could not be proved.

The watchdog called for the ad's "healthier lifestyle" assertion to be taken out because Atkins Nutritionals could not prove it was true.

Dr. Catherine Hankey, a nutritionist at Glasgow University, said, "Basically it didn't work. Over three months you lose more weight, but at one year, there's no difference over conventional diets.

"People can't comply with Atkins -- it's not a pleasant diet to be on long-term.

"People don't want to take responsibility. If someone comes up with an easy option, then people will take it."

Company On Financial Diet

The privately held company, founded in 1989 by the late Dr. Atkins, who died in 2003 from injuries he suffered in a fall, said it had reached an agreement with the majority of its lenders to give them equity in exchange for lowered debt.

Atkins owes 166 million pounds (294 million dollars) in outstanding debt and interest.

The company said it had received 13.8 million pounds (24 million dollars) in financing to operate during the bankruptcy proceedings, which it said would not affect day-to-day operations.

Mark Rodriguez, the president and chief executive, said the company had in the past year, "adjusted our organization to accommodate a smaller business," and will promote its brands "more broadly for consumers who are concerned about health and wellness."

After it leaves bankruptcy, the company, based in Ronkonkoma, New York, will focus on its nutrition bars and shakes, Mr Rodriguez said.




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