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November 9, 2009

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Low-carb trend contributes to food maker’s bankruptcy

Monday, May 10, 2004 | 10:49 a.m.

HARRISBURG, Pa. -- New World Pasta Co., maker of Creamette, Prince, Ronzoni and San Giorgio pastas, said today it filed for bankruptcy as the rising popularity of low-carbohydrate diets left it struggling with more than $387 million of debt.

New World, one of the world's biggest producers of dry pasta, sought Chapter 11 protection in U.S. Bankruptcy Court in Harrisburg, Pa., the company's hometown.

The company also has struggled with internal accounting problems that cropped up soon after it purchased one of its largest competitors.

As many as 24 million Americans may be on low-carbohydrate diets, such as one advocated by late author Robert Atkins, research firm Opinion Dynamics Inc. reported in February. The diets restrict foods such as pasta, potatoes and rice.

Privately held New World is majority owned by private-equity firm JLL Partners. New World has about $227 million of bank loans and $160 million of 9 1/4 percent notes maturing in 2009.

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