THE biggest bakery business in the United States has filed for bankruptcy protection after the popularity of low-carb diets triggered a drop in sales.
Interstate Bakeries, makers of the famous US snack Twinkies, filed court papers indicating it intended to continue operations while seeking protection.
The group, which employs around 33,000 staff, listed assets of £894 million and liabilities of
£726m.
In a statement the company blamed, in part, "declining sales" for its problems. In the last quarter, Interstate Bakeries reported a loss of £3.7m.
Bakeries in the US recently began a fight-back against the low-carb craze after suffering sliding sales.
The US bread industry, usually worth £3.4 billion, saw revenues tumble last year as dieters shunned carbohydrates.
The low-carb diets remain controversial with mixed claims about their benefits. Dieters cut out starchy foods, like bread, pasta and potatoes, instead opting for protein-rich foods, like meat, fish and eggs.
One of America’s biggest food firms, the Sara Lee Bakery Group, has already introduced its own low-carb brand.
Panera, with more than 600 bakeries, also introduced low-carb breads earlier this year.
Chief concept officer Scott Davis said: "It’s such a large trend that’s still emerging. You can either dig into it or ignore it."
