Atkins U.K. Closing Shop

LONDON--Atkins Nutritionals U.K. is facing bankruptcy and liquidation due to lagging sales of its diet products, according to reports from BBC News. The company is reportedly in the process of petitioning the British High Court for appointment of administrators, who will try to secure a buyer for the business. This move to bankruptcy and liquidation could leave unpaid multiple suppliers and other companies who are owed money.

More than three million Britons have tried the Atkins low-carbohydrate, high protein diet, but sales of the Atkins-branded products have been recently suffering at the hands of competitors. Despite lackluster U.K. sales, the Atkins diet remains popular in Britain. Executives from both the European Mens Health Forum and the National Obesity Forum confirmed the benefits of a low carb lifestyle in reducing obesity.

Atkins might have succumbed to competition from companies such as Xcarb, which offers a range of low carb products. The reason Atkins failed in the U.K. is that its foods were engineered for the U.S. market, and people found the choice too limiting, said Dave Marshall, M.D., of Xcarb. The U.K. consumer missed the staples of mash, cereals and pasta as well as sweet alternatives such as chocolate and fruit. He added Britons also missed the convenience of ready meals and found the Atkins diet prohibitive and expensive.